Mr. Joseph Durante reports

TOSCANA ENERGY ANNOUNCES ACQUISITION OF OIL ASSETS

Toscana Energy Income Corp. has entered into a purchase and sale agreement to acquire assets that produce, on average, 300 barrels a day of long-life operated light oil production in Southern Alberta for $15-million in cash. This acquisition represents the fourth purchase of large-resource-in-place oil reserves this year adding to Toscana Energy's portfolio of gross overriding royalty interests and liquid-rich natural gas assets.

The following are highlights of the assets that are being acquired by Toscana Energy:

• Large oil in place with enhanced oil recovery (EOR) under way;
• A reserve life index of approximately 12 years*;
• Run rate cash flow of 4.3 times;
• Flowing barrel metric of $50,000*;
• Proven acquisition price of $15.67 per barrel*;
• Proven plus probable acquisition price of $11.29 per barrel*;
• A recycle ratio on a proven plus probable basis of 2.48 times based on run rate cash flow.

Closing of this transaction is subject to customary closing conditions, as well as an increase in Toscana Energy's credit facilities, which is currently under way and expected to occur prior to closing. Closing of this transaction is anticipated by year-end and will have an effective date of Oct. 1, 2015.

* Reserves values based on an independent engineering report are prepared by a qualified reserves evaluator dated effective Dec. 31, 2014.

We seek Safe Harbor.