Mineral Hill Negotiates the Terms to Acquire Absolute Majority of Its Oil and Natural Gas Project

Trading Symbols:

TSX Venture Exchange: MHI

Frankfurt Xetra: N8Z1/WKN: AODLHP

OTC Market (US): MHIFF

NEWS RELEASE

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Mineral Hill Industries Ltd.

-Mayfield Business Centre- Ph: 604-278-1135

#1140–13700 Mayfield Place, Fx: 604-278-1139

Richmond, BC, V6V 2E4 Email: [email protected]

Canada www.mineralhill.com

MINERAL HILL NEGOTIATES THE TERMS TO ACQUIRE ABSOLUTE

MAJORITY OF ITS OIL AND NATURAL GAS PROJECT

Richmond, BC, Canada – January 16, 2017

Mineral Hill Industries Ltd. (“Mineral Hill” or “Company”) wishes to announce that it has now

negotiated the terms of its future Right of First Refusal (“ROFR”) for the acquisition of an

additional 8% of the outstanding shares of CPS Energy Resources Plc (“CPS”) to bring it majority

and control in development in the OPL-236 project, as announced previously in the Company’s

August 18, 2016 and December 5, 2016 news releases. The Company had announced that it had

received the “Right of First Refusal” from an additional two (2) Shareholders of CPS, representing

eight percent (8%) of CPS’s outstanding shares. As Mineral Hill had received “Conditional

Acceptance” from the TSX-V stock exchange for its proposed acquisition of 45% of CPS’s issued

shares, an exercise of the irrevocable Right of First Refusal will bring the Company’s shareholdings

in CPS up to fifty-three percent (53%).

The additional acquisition under the terms of the ROFR will have the exact same terms and

conditions as the previously announced and executed Share Purchase Agreement for its “substantial

acquisition” of 45% of the outstanding shares of CPS and will be conditional upon the final approval

of the submitted “substantial acquisition” by the Exchange.

The December 5, 2016 News Release also stated that Mineral Hill had secured the second phase of

funding for the development of the OPL-236 project through a significant eight-year USD Zero-

coupon bond issue, on the assumption that the Company would eventually exercise its irrevocable

ROFR to acquire the additional eight percent (8%) of CPS.

The Company seeks Safe Harbor

For further information, please contact:

Dieter Peter

President & CEO Phone: (604) 278-1135

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.