Mr. Rob Wollmann reports

TWIN BUTTE PROVIDES CORPORATE UPDATE

Twin Butte Energy Ltd. is in discussions with its bank syndicate to extend the maturity date of its $85-million non-revolving credit facility from April 30, 2016, to enable the company to continue with its strategic alternatives process.

As announced on Dec. 9, 2015, Twin Butte has engaged Peters & Co. Ltd. and National Bank Financial Inc. as its financial advisers to advise the company in connection with a comprehensive review and analysis of its strategic alternatives process. Strategic alternatives may include, but are not limited to, a debt restructuring, a sale of all or a material portion of the assets of Twin Butte, either in one transaction or in a series of transactions, the outright sale of the company, or merger or other transaction involving Twin Butte and a third party, and/or alternative financing initiatives.

While the company remains optimistic with respect to reaching an agreement to extend the maturity date of its non-revolving credit facility, the company cautions that there are no assurances or guarantees that the discussions with its lenders will result in a formal agreement to extend such maturity date. Furthermore, the company cautions that there are no assurances or guarantees that Twin Butte's process will result in a transaction, or if a transaction is undertaken, the terms or timing of such a transaction.

Within the context of the continuing strategic alternatives process, the current low oil price environment and the aforementioned debt repayment milestone, there is uncertainty surrounding the company's ability to continue as a going concern. While the company is in discussions with its lenders, failure to repay the non-revolving facility when due (unless otherwise extended) will constitute an event of default and entitle the syndicate to exercise its remedies under the credit facility, including acceleration of the credit facility and realization over the assets of the company.

We seek Safe Harbor.