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MANU.V ·

Oyster Oil Prepares for Djibouti Seismic Campaign

Corporate Updates

Suite 918-1030 West Georgia Street

Vancouver, British Columbia Canada V6E 2Y3

Tel. No. (604) 628-5621 ♦ Fax No. (604) 662-7950

Oyster Oil Prepares for Djibouti Seismic Campaign

Vancouver, British Columbia – January 9, 2018 – Oyster Oil and Gas Ltd. ("Oyster"

or the "Company") (OY: TSXV, 13L: FSE) is preparing for an onshore seismic

campaign in Djibouti. Invitations to tender have been issued and an independent

environmental impact assessment report has been commissioned.

Oyster Oil has identified a large unexplored sedimentary basin located in Blo ck 1,

onshore Djibouti. The basin is located close to the coast and is also quite near to the

capital Djibouti City, and thus to the excellent infrastructur al capacity of the port, road ,

rail and air networks of Djibouti , one of East Africa’s major intern ational transportation

hubs.

Oyster Oil holds 100% equity in both onshore and offshore blocks in Djibouti. Oyster Oil

will also be seeking to acquire an offshore 2D seismic survey subject to identifying with

a suitably qualified contractor.

Dr. Phil Roach , Oyster's Head of Exploration commented: “ We are tendering for a 2D

seismic survey of up to approximately 200 line kilometres over the mapped Mesozoic

sedimentary basin (Jurassic and Cretaceous) in Block 1 . Oyster Oil has conducted

extensive field studies and various surveys over the last few years and believes that

Djibouti has the potential to mirror the highly prolific hydrocarbon reserves/production

potential that exists across the narrow Red Sea/Gulf of Aden Rift in Yemen.”

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 is the Operator and holds four blocks comprising

approximately 3.5 million acres o nshore and offshore in Djibouti. Oyster also holds a

100% working interest and is the O perator of an onshore block located in northwest

Madagascar covering approximately 2.8 million acres.

For further information please contact:

Emily Davis, Corporate Secretary

2

Tel: (604) 628-5616

Fax: (604) 662-7950

This news release contains statements about the Company's expectations regarding the completion of the Settlement and the benefits

of the F rankfurt Stock Exchange listing that are forward -looking in nature and, as a result, are subject to certain risks and

uncertainties. Although the Company believes that the expectations reflected in these forward -looking statements are reasonable,

undue reliance should not be placed on t hem as actual results may diff er 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 ma terially

from those in forward -looking statements include failure to complete the Settlement for any reason whatsoever, including failure to

obtain TSXV acceptance, or the F rank Stock Exchange listing not providing increased trading liquidity or investment by European

investors. 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 other wise, 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 offe r for sale or a solicitation of an offer to 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.