Mr. Greg Busby reports

WESCAN ENERGY ANNOUNCES PROPOSED ACQUISITION OF OIL AND GAS PROPERTIES IN EAST-CENTRAL ALBERTA

Wescan Energy Corp. entered into a binding offer to purchase agreement on April 21, 2015, with an arm's-length company, the company of which is subject to a receivership order issued by the Court of Queen's Bench of Alberta in the receivership proceedings on May 9, 2014, and through its court-appointed receiver, Alvarez & Marsal, to purchase the medium-light oil and associated gas properties in east-central Alberta that are currently producing approximately 85 barrels of oil equivalent per day (95 per cent oil and natural gas liquids, 5 per cent natural gas) for a total purchase price of $1.24-million. The purchase price shall be payable in cash and is subject to customary closing conditions and adjustments, including receipt of all regulatory approvals and the approval of the TSX Venture Exchange. Wescan expects to finance the cash portion of the purchase price through a combination of existing cash, equity and/or debt financing, the details of which will be announced in a subsequent news release. Closing of the acquisition is expected to occur on or about May 15, 2015, with an effective date being the same as the closing date.

Under the acquisition, Wescan will purchase the 100-per-cent working interests of the vendor in the Provost area, located in east-central Alberta. The Provost property consists primarily of 100-per-cent working interests in the producing assets, in addition to 100-per-cent ownership of key producing infrastructure, including batteries and pipelines. Management has also identified approximately eight reactivations of existing shut-in wells and approximately 10 to 15 low-risk development drilling locations that are supported within a defined area of 3-D seismic. The related production comes from multiple established zones ranging between 700 metres and 950 metres, complemented with a contiguous land base of approximately 3,800 net acres.

Production relating to the assets is approximately 85 barrels of oil equivalent per day, composed of approximately 95 per cent oil and liquids. On this basis, Wescan is paying approximately $15,000 per flowing barrel of production. Based on the most current engineering report of Dec. 31, 2012, and the mechanical update as at Dec. 31, 2013, as provided by the vendor, Wescan's internal estimates of gross estimated proved plus probable reserves are approximately 620,000 barrels of oil equivalent (95 per cent oil and liquids). Upon closing of the acquisition, Wescan expects to provide further guidance with respect to the estimated reserves within 90 days of closing, together with its business acquisition report and in conjunction with the corporation's March 31 year-end material. An independent, third party engineering evaluator report will be completed by the corporation's engineering firm, McDaniel and Associates Consultants Ltd.

The acquisition is accretive to Wescan shareholders on all key metrics and provides a stable production base with upside through reactivations of existing shut-in wells, infill drilling locations, optimization opportunities and waterflood potential. The acquisition also fits well with Wescan's overall strategy of sustainable production growth as the assets will contribute to the corporation's creation of building of a balanced portfolio of development, exploitation and exploration opportunities in a focused geographical area to advance sizable growth and to increase reserves and cash flow, including the potential for future strategic acquisition opportunities.

Notes to the above reserve estimates

McDaniel utilized its Dec. 31, 2013, forecast prices and costs for the mechanical update.

It should not be assumed that the estimates of the present value of future net revenues before tax represent the fair market value of the reserves. There can be no assurance that the forecast price and cost assumptions contained in the McDaniel reports will be consistent with actual prices and costs and variances could be material.

We seek Safe Harbor.