BOE Report

Rising Star Resources Ltd. Announces Financing by Lex Capital and 32 Degrees Capital and the Acquisition of Peace River Assets

CALGARY, ALBERTA–(Marketwired – July 11, 2016) –Rising Star Resources Ltd. (“Rising Star” or the “Company“) is pleased to announce that it has completed its initial financing with Lex Capital and 32 Degrees Capital with a total commitment amount of $25 million. The Company has also completed a non-brokered private placement (“Private Placement“) which together with the initial financing, resulted in total aggregate proceeds of approximately $40 million.

Rising Star is also pleased to announce the acquisition of top-tier conventional, high working interest, large OOIP, operated light oil and gas assets, including associated infrastructure, in the Peace River area of Alberta with June 2016 production of approximately 1,000 boe/d (55% Oil and NGL) plus facility interests and 85,530 net acres of undeveloped land for a purchase price of $30 million (the “Asset Acquisition“).

Rising Star is led by Steve Sugianto, President and Chief Executive Officer, who has over 30 years of experience in the Canadian oil and gas sector, including founding and leading three successful start-up companies that delivered strong shareholder returns (New Star Energy, Galleon Energy and KeyWest Energy). Steve Sugianto was the winner of 2014 Top Emerging Producer for Canada’s Oil and Gas Entrepreneurs awarded by Explorers and Producers of Association of Canada. Rising Star’s management team has a strong, proven track record of creating shareholder value. Rising Star’s Board will consist of Paul Colborne (CEO of Surge Energy Inc.) as Chairman, Craig Lothian and Dean Popil (Lex Capital), Mitch Putnam (32 Degrees Capital) and Steve Sugianto.

“We are very excited about our opportunities,” Steve Sugianto said, “The current cycle of oil prices provides a unique opportunity to build and to create an elite, growth focussed, light oil company with large OOIP and large low risk development drilling inventory that can deliver significant growth at current strip oil prices.”

National Bank Financial acted as financial advisor for the Company in connection with the Asset Acquisition and the Private Placement and Richardson GMP acted as finding agent in connection with the Private Placement.

About Lex Capital and 32 Degrees Capital

Lex Capital and 32 Degrees Capital are private equity firms that invest in high growth, resource opportunities in the Canadian energy sector.

Advisories & Contact
Forward-Looking and Cautionary Statements:

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “anticipate”, “may”, “will”, “should”, “believe”, “intends” and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward-looking statements and information concerning the opportunities and growth profile of the Company. The forward-looking statements are based on certain expectations and assumptions made by management. Risks and uncertainties inherent in the nature of the transactions disclosed include the failure of the parties to satisfy the conditions to such transaction, in a timely manner, or at all. The failure of the parties to satisfy the conditions to the transaction disclosed herein may result in the transactions not being completed on the proposed terms, or at all. Readers are cautioned that the foregoing list of factors is not exhaustive.

The forward-looking statements and information contained in this press release are made as of the date hereof and Rising Star undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be issued pursuant to the Private Placement described herein have not been and will not be registered under the United States Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from such registration.

Barrel of oil equivalents or boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of 6:1, utilizing a 6:1 conversion basis may be misleading as an indication of value.

Contact:
Rising Star Resources Ltd.
Steve Sugianto
President and Chief Executive Officer
403-819-0806