Mr. Eric Laing reports

RAISE PRODUCTION INC. ANNOUNCES THIRD QUARTER 2015 FINANCIAL RESULTS AND OPERATIONS UPDATE

Raise Production Inc. has released its financial results for the three and nine months ended Sept. 30, 2015.

President's update

The company is pleased to provide an update to its shareholders on both its horizontal wellbore production system and its rod pump technology.

As stated in the company's press release dated Oct. 27, 2015, the company's system, which was deployed over the summer, was retrieved in early October. After disassembly and inspection of the pumps, reviewing operating results from the deployment, and the fluids accumulated within the pumps, the company has made significant progress toward confirming its theories of horizontal flow.

Based on information gained in the company's previous deployments, the company has made changes to its system configuration, and a redeployment of the system will occur prior to year-end. These changes include:

• Alterations to the configuration of the activation system;
• The interface between the system and the vertical lift;
• The pump placement along the horizontal section.

These changes are designed to improve system activation speed, increase efficiency between the horizontal and vertical pumping systems, and enhance reservoir drawdown.

In addition, the company continues to move toward commercialization of its proprietary rod pump technologies as stand-alone commercial product lines. It has moved into the third phase of its technology development agreement with Cenovus Energy Inc. The 2.5-inch pump is ready for deployment, and the company is waiting for logistical arrangements to be completed by the customer. The 4.5-inch pump is anticipated to be deployed during the first half of 2016.

The company would like to thank its staff for their efforts, its shareholders for their support, and its industry partners for their continued interest and participation in the company's initiatives to develop a unique and needed technology.

Results of operations

                           STATEMENT OF OPERATIONS 

                                     Three months ended             Nine months ended
                                         Sept. 30,                      Sept. 30,
                                    2015           2014           2015           2014

Revenue                       $  115,000     $   78,783   $    167,409   $    142,833
Cost of sales                     42,618         54,113         74,982        106,205
Gross margin                      72,382         24,670         92,427         36,628
Interest income                    8,802         14,763         27,446         50,748
Expenses
General and
administration                   369,856        395,680      1,161,523      1,127,097
Stock-based
compensation                      53,021         14,082        140,036         40,244
Depreciation and
amortization                      33,703         37,442        104,681        118,501
Finance costs                      5,492          7,471         18,606         23,867
Inventory impairment
(reversal)                            --          1,429             --        (29,706)
Total expenses                   462,072        456,104      1,424,846      1,280,003
Net (loss) and
comprehensive (loss)          $ (380,888)    $ (416,671)  $ (1,304,973)  $ (1,192,627)
Net (loss) per share --
basic and diluted             $    (0.00)    $    (0.00)  $      (0.01)  $      (0.01)

Raise's full unaudited condensed interim financial statements and management's discussion and analysis will be filed shortly on the company's profile on the SEDAR website.

We seek Safe Harbor.