Arctic Hunter Announces Closing of First Tranche of Private Placement For Gross Proceeds of $500,500 – Funds to be Used in Connection with Mexican Acquisitions ____________________________________________________________________________________

ARCTIC HUNTER ENERGY INC.

Suite 1610 - 675 West Hastings Street · Vancouver · British Columbia · V6B 1N2 Telephone: (604) 681-3131

NEWS RELEASE

May 2, 2017 TSX-V Trading Symbol: AHU

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Arctic Hunter Announces Closing of First Tranche of Private Placement For Gross Proceeds of $500,500 – Funds to be Used in Connection with Mexican Acquisitions

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VANCOUVER, B.C. - Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the “Company”) is pleased to announce that, further to its news release dated April 28, 2017, it has closed the first tranche of a non-brokered private placement. This first tranche consisted of 5,005,000 units (the “Units”) at a price of $0.10 per Unit for gross proceeds of $500,500. Each Unit is comprised of one common share of the Company and one non-transferable common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at an exercise price of $0.15 per share for a period of two (2) years from the date of issuance.

In connection with this first tranche of the private placement, the Company paid finders’ fees of $39,080 and issued 390,800 finder’s warrants to arm’s length parties. Each finder’s warrant entitles the holder to acquire one common share of the Company at a price of $0.15 per share for a period of two (2) years from the date of issuance.

All securities issued or issuable in connection with this first tranche of the private placement are subject to a four month hold period expiring on August 29, 2017, in accordance with applicable securities laws.

The Company intends to use the proceeds of the private placement for the following purposes: (i) first cash payment on San Javier Mill (see news release dated April 28, 2017) (CDN$345,000); (ii) fund completion of a National Instrument 43-101 compliant technical report on the Rebeico Gold-Copper property currently under option (as disclosed in news releases dated December 8, 2016, February 8, 2017 and March 20, 2017) (CDN$27,000); and (iii) transaction costs including professional fees and finder’s fees in connection with the private placement, and general working capital ($128,500).

ABOUT ARCTIC HUNTER ENERGY

The Company is a Canadian Oil & Gas exploration and Mining resource development Company that identifies, acquires and finances the acquisition, exploration and development of mining and oil and gas assets primarily situated in Western Canada and North America. The Company is currently a junior heavy oil producer in the greater Lloydminster area of Alberta & Saskatchewan. The Company is continually reviewing future production and exploration opportunities, through selective property acquisitions and identifying low risk exploration drilling activities situated in Canada, the United States, Mexico and abroad.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Tim Coupland, President and CEO Arctic Hunter Energy Inc.

Tel: (604) 681-3131 [email protected]

or

Ted Burylo, Director Arctic Hunter Energy Inc.

Tel: (604) 764-9178

Neither the TSX Venture Exchange nor its Regulation Services Provider, (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.