Mr. Greg Busby reports

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

Wescan Energy Corp. has closed its previously announced acquisition of producing, conventional medium-light oil and gas assets located in east-central Alberta. The acquisition is pursuant to a purchase agreement dated April 21, 2015, with an arm's-length company, Alston Energy Inc., and was subject to a receivership order issued by the Court of Queen's Bench of Alberta in the receivership proceedings on May 9, 2014, through the court-appointed receiver, Alvarez & Marsal. The total cash consideration for the acquisition was $1.24-million with an effective date of May 25, 2015. The acquisition was financed through a combination of existing cash and a series of short-term promissory notes of approximately of $1.1-million. The notes have a 7-per-cent interest coupon and are convertible into the corporation's common shares on an equivalent basis and priced in context with the market at the time of conversion, if exercised. The notes are convertible at the option of the lender. In the event that common shares are issued upon such election, any shares issued under conversion shall be subject to applicable securities laws and the policies of the TSX Venture Exchange.

All conditions have been satisfied under the agreement, including all requisite documentation filed with the TSX-V pursuant to the corporation's "fundamental acquisition" submission, including receipt of final approval of TSX-V. The corporation is now proceeding with its application with the Alberta Energy Regulator (AER) to have all wells and related facilities being acquired under the acquisition transferred to Wescan.

Under the acquisition, the assets acquired will establish a core area for Wescan and will consist of 100-per-cent-operated, low-decline crude oil and associated gas production. Current production is approximately 105 barrels of oil equivalent per day (95 per cent oil and natural gas liquids, 5 per cent natural gas) and will generate immediate cash flow. The Provost property consists of primarily 100-per-cent working interests in the producing assets in addition to 100-per-cent ownership of key producing infrastructure, including batteries and related pipelines. Management has also identified approximately eight shut-in wells that require reactivations on the property due to certain mechanical failures and limited working capital of the receiver. It is expected that once the reactivations are completed, the added production from the affected wells will add approximately 65 to 75 barrels of oil equivalent per day. Management has also identified nine to 15 low-risk horizontal development drilling locations that are supported within a defined area of 3-D seismic.

The assets are well known to Wescan's management, which previously managed and operated the properties under CanRock Energy Corp. prior to its sale to vendor in 2012. Management will now focus its attention on the future development and exploitation of the property and is confident that the underlying reserves can now be realized with the intended disciplines and experience of capturing the material growth potential the property has to offer.

The acquisition is accretive to Wescan's 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 the corporation's overall objective of sustainable production growth. These assets will contribute to the corporation's desire to build a balanced portfolio of development, exploitation and exploration opportunities in a focused geographical area.

We seek Safe Harbor.