Mr. Jim McFarland reports

VALEURA ANNOUNCES EXTENSION OF TIMELINE UNDER BINDING LETTER AGREEMENT WITH STATOIL FOR FARM-IN ON BANARLI LICENCES IN TURKEY

Valeura Energy Inc.'s wholly owned affiliate, Corporate Resources BV (CRBV), has executed an extension to the binding letter agreement executed on May 15, 2016, with Statoil Holding Netherlands BV, a wholly owned affiliate of Statoil ASA, for a farm-out agreement for the exploration of the deeper formations on Valeura's two 100-per-cent-owned-and-operated Banarli exploration licences in the Thrace basin of northwest Turkey. As a result, the exclusivity period and timeline to complete the definitive transaction agreements have been extended from July 29, 2016, to Aug. 19, 2016. The definitive agreements are extensive, including a farm-in agreement, a joint operating agreement to apply postearning and a number of ancillary agreements.

Following the anticipated completion of the definitive agreements, the parties will jointly submit applications to the General Directorate of Petroleum Affairs (GDPA) of the Republic of Turkey for the associated licence interest transfers, whereby Statoil will hold a 50-per-cent participating interest in the deep formations below approximately 2,500 metres and Valeura will retain a 100-per-cent interest in the shallow formations on the Banarli licences.

Completion of the definitive agreements and government approval for the licence interest transfers are key conditions to close the transaction. There is no certainty that the parties will be able to complete the definitive agreements or that the GDPA will approve the licence interest transfers.

We seek Safe Harbor.