Arctic Hunter Increases Its Working Interest Ownership to 60%, in the C- 12 Well, Situated in Landrose, Saskatchewan

ARCTIC HUNTER ENERGY INC.

c/o Suite 1200 - 750 West Pender Street · Vancouver · British Columbia · V6C 2T8 Telephone: (604) 681-3131

NEWS RELEASE

June 28, 2018 TSX-V Trading Symbol: AHU

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ARCTIC HUNTER INCREASES ITS WORKING INTEREST OWNERSHIP TO 60%, IN THE C- 12 WELL, SITUATED IN LANDROSE, SASKATCHEWAN

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VANCOUVER, BC - Arctic Hunter Energy Inc. (TSXV: AHU) (“Arctic Hunter” or the “Company”) is pleased to announce that it has entered into an debt settlement agreement with Petrocapita Oil & Gas LP, of Calgary “(Petrocapita”), whereby the company has amended the original Farmout agreement dated July 5, 2010, and subsequently amended on February 24, 2014, and increased it’s working interest ownership in the C-12-6-50-25 W3M vertical well, situated in Landrose, Saskatchewan by an additional 10%. Arctic Hunter Energy has now increased it’s working interest to 60% and Petrocapita 40%, in the C-12 well, effective July1, 2018. The C-12-6-50-25 W3M, was successfully drilled near Landrose, Saskatchewan in July of 2010 and penetrated the McLaren formations and encountered oil, in 2 other zones of interest. The well has been a consistent producer for the company since being placed on daily production in 2010. Petrocapita remains the operator of the well.

Additionally, the Company has now entered into an agreement with Husky Energy which commenced in May 2018, whereby the company will receive all payments directly from Husky Oil Operations Ltd, Managing Partner of Husky Energy Marketing Partnership for the Company’s heavy oil wells situated in central Alberta and Saskatchewan.

THE “TORRI” – Oil & Gas Term Overriding Royalty Interest

The Company on June 22, 2018, has negotiated and entered into a non-binding letter of intent for an asset purchase pursuant to which the Company will acquire 4,250 barrels of oil and 18,750 mcf of gas, from interests in oil and gas situated in the San Joaquin Valley, in central California for the approximate purchase price of 2,249,100 shares of Arctic Hunter at a deemed price of $0.10 cents per share, subject to the completion of NI -5101 Reserve Report, final due diligence and the usual industry adjustments, such transaction having an anticipated completion date of September 1, 2018. This transaction is subject to TSX Venture Exchange approval.

The TORRI is a non-operating overriding royalty interest that does not bear production expenses and is created out of and burdening leasehold working interest in the Witter Field Leases. The TORRI has a limited term which commences at the effective time and automatically terminates and ends on that date when the purchaser has received the purchaser’s proportionate share of oil and gas produced from the Leases attributable to a portion of Temblor’s working interest therein. The transaction has no, up-front capital requirements and the production cash flow is expected to be immediately accretive to earnings upon the effective date.

ABOUT THE TEMBLOR/ WITTER FIELD OIL & GAS DISCOVERY & PROJECT SITUATED IN THE SAN JOAQUIN VALLEY OF CENTRAL CALIFORNIA

The Temblor/Witter Field project is situated in the San Joaquin Valley, in Central California and was drilled and discovered by Temblor Petroleum and its partners in 2015. Since its discovery Temblor and its partners have invested significant capital in developing a fully completed production facility and gas pipeline with liquid processing facilities. The Witter Field project is now in commissioning and will begin full commercial production shortly. In addition to the development of the new wells and the newly completed processing facilities, Temblor has already received a conditional use permit from Fresno County for the drilling and development of other wells and expanded facilities to accommodate the full development of the field. Development and expansion of the discovery field is expected for many years. The well was drilled and completed in 2015. The current operator, Temblor Petroleum LLC is expected to drill an additional 2 vertical wells this year and integrate production to the newly installed facilities operation which can handle over 1,000 BOPD of light sweet oil. Additional drilling and exploration growth activity has been planned for the project in 2018-2025, with its working interest partners.

The Arctic Hunter proposed light Oil & Gas transaction represents the Company’s initial diversification into the United States and the California oil and gas resource sector by acquiring and securing monthly light oil production revenue and, allowing the Company to access advanced oil exploration and drilling and revenue opportunities. This strategic acquisition of additional revenue producing resource assets will also allow the Company to access a wide portfolio of oil exploration opportunities situated in this oil region. The Temblor/Witter Field Oil project will also help to compliment the Company’s existing heavy oil production in Alberta and Saskatchewan and provides the Company with reputable American working interest partners seasoned in light oil & gas production, which will allow the Company access to future expansion opportunities in the oil and natural gas resource sector in this region of California. The Company is encouraged by quality and size of the oil & gas exploration projects, but is being very thorough, discerning and highly selective in assessing any potential revenue producing resource, exploration and drilling opportunities. The Company continues to review and maintain its high standard of due diligence with regard to the appointment of any new additional management teams and potential exploration acquisitions being presented to the Company. Updates will be provided as details are finalized with regard to any potential acquisitions.

ABOUT ARCTIC HUNTER ENERGY– OIL AND GAS PRODUCTION

The Company is a Canadian heavy oil & gas exploration and development Company that acquires and finances the acquisition, exploration and development of oil and gas assets primarily in Western Canada and now diversifying into California. The Company is a junior heavy oil producer that is focusing on growing its production base and maximizing future production revenue through its exploration drilling activities, production acquisitions and strategic asset acquisition both domestically in the greater Lloydminster area of Alberta & Saskatchewan and now in the United States. The Company is continually reviewing future production and exploration opportunities through selective property acquisitions and identifying low risk exploration drilling activities.

The Company has experienced qualified management, and an Oil & Gas team of professionals seasoned in field exploration and drilling. The Company has the resources and necessary manpower to develop its natural resource and production properties. The Company is committed to minimizing risk through the selective acquisition, exploration and development of petroleum and natural gas resource assets. The Company intends to increase its oil production and reserves through its exploration activities and strategic property acquisitions both domestically and internationally.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Tim Coupland, President and CEO Arctic Hunter Energy Inc.

Tel: (604) 681-3131 [email protected]

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.