Mr. Kevin Gibson reports

PALLISER PROVIDES UPDATE ON PROPOSED MAHA AMALGAMATION

Palliser Oil & Gas Corp.'s proposed amalgamation of the company and Maha Energy Inc. pursuant to an amalgamation agreement between the company and Maha dated July 30, 2014, as described in the company's press release of July 30, 2014, will be modified and delayed.

In particular, the proposed bond financing by Maha will not be advanced at present. Negotiations are under way amongst Maha, Palliser and Palliser's lender to modify and extend the terms of the existing credit facilities in order to complete the proposed amalgamation. Maha is also reviewing the opportunities for equity financing and is looking to advance a private placement share issuance along the lines proposed in the amalgamation agreement as a condition of closing.

In order to permit Maha, Palliser and Palliser's lender to continue negotiations relative to the terms of a potential amended credit facility, the outside date for the transaction under the amalgamation agreement has been extended to Nov. 28, 2014, and the terms of the forbearance agreement between Palliser and its lender have been extended for a period of one week to Nov. 7, 2014. If Maha, Palliser and Palliser's lender are able to come to terms, it is expected that additional time will be necessary to satisfy any conditions related to the amended credit facility, including closing of the requisite equity financing, and the amalgamation would be scheduled to be completed in the last half of November, 2014.

We seek Safe Harbor.