Mr. Norman Holton reports

SERINUS CLOSES OF SALE OF UKRAINE INTERESTS

Serinus Energy Inc. has closed the sale of its interests in Ukraine to Resano Trading Ltd., an affiliate of the Burisma Group, a Ukraine entity actively involved in the upstream oil and gas industry in Ukraine.

Serinus sold all of the 70 per cent of the outstanding shares of KUB-Gas Holdings Ltd. owned by the company. KHL in turn, owns 100 per cent of the shares of KUB-Gas LLC. KUB-Gas (directly and indirectly through its subsidiary, KUB-Gas Borova LLC) owns 100 per cent of and operates the six licences/permits in Ukraine which contain the Olgovskoye, Makeevskoye, Vergunskoye and Krutogorovskoye gas fields. KUB-Gas was assigned gross 2P reserves of 64.5 billion cubic feet and 459 million barrels of natural gas liquids (45.1 billion cubic feet and 321 million barrels working interest) at Dec. 31, 2014. Estimated gross production in the fourth quarter of 2015 was 22.9 million cubic feet equivalent per day (16.0 million feet equivalent per day working interest), of which 98 per cent was natural gas.

The effective date of the sale was Dec. 31, 2015. Serinus received total cash consideration of $32.8-million including all working capital and intercompany adjustments. Subsequent to closing, the company will repay a total of $19.2-million of debt and accrued interest to European Bank for Reconstruction and Development against its Tunisia and Romania credit facilities. The balance of the proceeds will be used to help finance development of the Moftinu gas discovery in Romania.

We seek Safe Harbor.