Mr. John Garden reports

PENNINE RECEIVES NOTIFICATION OF SUCCESSFUL BID FOR BLOCK VELCA TERRITORY IN ALBANIA

Pennine Petroleum Corp. has received notification from licensee Albpetrol ShA that Pennine was confirmed on Dec. 2, 2015, by the Republic of Albania's Ministry of Energy and Industry as the successful bidder for block Velca.

The block is located 10 kilometres southeast of the city of Vlore, in the southern portion of the Balkan nation, and covers an area of 153,215 acres (239 square miles, or 620 square kilometres). The hydrocarbon reservoirs associated with block Velca are Ionian subthrust carbonates, similar in structure to reservoirs of the foothills of western Alberta.

John Garden, Pennine's chief executive officer, has worked extensively in Albania drilling vertical and horizontal wells, and managing numerous well completions in the southeastern European country.

"I am pleased to announce Pennine's participation in the oil and gas industry of the Republic of Albania," said Mr. Garden. "This project has significant potential for the corporation, as it develops its geographic, price point and jurisdiction of exploration and development strategy.

"Working in the Republic of Albania, and respecting its established legislation and regulations, will generate significant interest to the shareholders of Pennine and the people of Albania."

The award is conditional and subject to the terms and conditions of a negotiated petroleum agreement, and subsequent government and board of director approvals.

We seek Safe Harbor.