Oyster Oil and Gas Ltd. Announces Issue of Options

Suite 918-1030 West Georgia Street Vancouver, British Columbia Canada V6E 2Y3 Tel. No. (604) 628-5621 ♦ Fax No. (604) 662-7950

TSX-V Trading Symbol: OY

Oyster Oil and Gas Ltd. Announces Issue of Options

Vancouver, British Columbia – May 20, 2016 – Oyster Oil and Gas Ltd. ("Oyster" or the "Company") announces the granting of 1,800,000 incentive stock options to purchase common shares of the Company to directors, officers and consultants of the Company. The newly granted stock options are exercisable at $ 0.14 share and will expire on May 20, 2021. The stock option grants are subject to filing with the TSX Venture Exchange.

About Oyster Oil and Gas Ltd.

Oyster is an upstream oil and gas company with a focus on Eastern Africa. Oyster holds production sharing contracts interests with the Government of Djibouti and the Government of Madagascar. Oyster holds four blocks comprising approximately 3.5 million acres onshore and offshore in Djibouti; and holds a working interest in an onshore block in Madagascar covering approximately 2.8 million acres.

For further information please contact:

Emily Davis, Corporate Secretary Tel: (604) 628-5616 Fax: (604) 662-7950

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 news release.