Mr. Patrick Ward reports

PAINTED PONY ANNOUNCES CLOSING OF MONTNEY ACREAGE AND WELLS SWAP WITH INDUSTRY PARTNER

Painted Pony Petroleum Ltd. has closed the asset exchange transaction previously announced on July 27, 2016. The swap includes Montney acreage, wells, and non-operated facility interests with a large industry partner on jointly held acreage in the Daiber, Cameron and Blair areas of Painted Pony's northeast B.C. Montney asset. Painted Pony and the counterparty have exchanged 15.4 net sections (9,856 net acres).

As a result of this swap, Painted Pony's average working interest across its Montney acreage has increased to greater than 86 per cent from 75 per cent prior to closing of the transaction. All of the land and wells acquired by Painted Pony in the swap are held at a 100-per-cent working interest.

The swap has an effective date of Jan. 1, 2016.