Mr. Trevor Folk reports

SHORELINE ENERGY CORP. ANNOUNCES SETTLEMENT AGREEMENT WITH A CREDITOR

Shoreline Energy Corp. has entered into a settlement agreement with a senior creditor. The settlement agreement provides that Shoreline pay the creditor $2.5-million immediately upon execution of the settlement agreement and an additional $3-million on or before Dec. 31, 2014. The settlement agreement further provides that should Shoreline fail to make full payment of $5.5-million by Dec. 31, 2014, the amount owing will revert to the original indebtedness of $9.8-million amount less any payments made prior to that date. The creditor has been granted additional security, such that the $3-million payment to be made on or before Dec. 31, 2014, is fully secured against the corporations Canadian assets.

The settlement agreement will provide Shoreline with the continuing opportunity to complete its strategic alternatives process, co-ordinated by its adviser RBC Capital Markets. The strategic alternatives process will continue to provide interested parties the opportunity to pursue transactions across Shoreline's suite of assets.

The corporation cautions that there are no assurances or guarantees that the continuing strategic alternatives process will result in additional transactions; if additional transactions are undertaken, the terms or timing of such transactions will be satisfactory to all stakeholders; or the continuing conditions of the forbearance will be met to the satisfaction of the lenders.

The corporation will update the market upon material developments in the strategic alternatives process.

We seek Safe Harbor.