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MANU.V ·

Oyster Oil and Gas Ltd. Announces Proposed Financing

Financings

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 Proposed Financing

Vancouver, British Columbia – May 31, 2017 – Oyster Oil and Gas Ltd. ("Oyster" or

the "Company") is pleased to announce that it intends to carry out a private placement

financing (the "Financing") for aggregate gross proceeds of up to CAD$1,000,000 by

issuing up to 2,000,000 units (each, a "Unit") at a subscription price of CAD$0.50 per Unit.

Each Unit will consist of one common share ( each, a " Common Share") and one

transferrable common share purchase warrant (each, a " Warrant"). Each Warrant will

entitle the holder thereof to purchase one Common Share at a price of CAD$0.55 for a

period of two years from the date of issue. Proceeds from the Financing are expected to be

used for working capital and general corporate purposes.

The Financing may be brokered or non -brokered, may close in one or more tranches, and

commissions and/or finder's fees payable in cash or securities may be paid by the Company

in connection with the Financing subject to compliance with TSX Venture Exchange (the

"TSXV") policies. The Financing remains subject to approval of the TSXV and

all securities issued pursuant to the Financing will be subject to a hold period as required

under applicable securities legislation.

Further to the Company's new releases dated April 19 and May 10, 2017, as a result of the

proposed Financing, the Company will not be proceeding with Tranche 2 of its previously

announced private placement.

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 work ing

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

2

This news release contains statements about the Company's expectations regarding the completion of the Financing that are forward-

looking in nature and, as a result, are subject to certain risks and uncertainties. Although the Company believes that the ex pectations

reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ

materially from the forward-looking statements and there can be no assurance that such expectations will prove to be correct. Factors

that could cause the actual results to differ materially from those in forward-looking statements include failure to complete the Financing

for any reason whatsoever, including failure to obtain TSXV acceptance. The forward-looking statements contained in this news release

are made as of the date hereof, and the Company 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, except as required by applicable securities laws. The

forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

This news release does not constitute and the subject matter hereof is not, an offer for sale or a solicitation of an offer t o buy, in the

United States or to any "U.S Person" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amend ed (the

"1933 Act")) of any equity or other securities of the Corporation. The securities of the Corporation have not been registered under the

1933 Act and may not be offered or sold in the United States (or to a U.S. Person) absent registration under the 1933 Act or an applicable

exemption from the registration requirements of the 1933 Act.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSX V)

accepts responsibility for the adequacy or accuracy of this news release.