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Arctic Hunter Announces Closing of First Tranche of Private Placement For Gross Proceeds of $500,500 – Funds to be Used in Connection with Mexican Acquisitions ____________________________________________________________________________________

Financings

ARCTIC HUNTER ENERGY INC.

Suite 1610 - 675 West Hastings Street · Vancouver · British Columbia · V6B 1N2

Telephone: (604) 681-3131

NEWS RELEASE

May 2, 2017 TSX-V Trading Symbol: AHU

______________________________________________________________________________________

Arctic Hunter Announces Closing of First Tranche of Private Placement For Gross Proceeds of

$500,500 – Funds to be Used in Connection with Mexican Acquisitions

____________________________________________________________________________________

VANCOUVER, B.C. - Arctic Hunter Energy Inc. (TSX-V: AHU) (“ Arctic Hunter ” or the

“Company”) is pleased to announce that, further to it s news release dated Ap ril 28, 2017, it has closed

the first tranche of a non-brokered private placement. This first tranche consisted of 5,005,000 units (the

“Units”) at a price of $0.10 per Unit for gross pro ceeds of $500,500. Each Unit is comprised of one

common share of the Company and one non-transferab le common share purchase warrant. Each warrant

entitles the holder to purchase one additional common share at an exercise price of $0.15 per share for a

period of two (2) years from the date of issuance.

In connection with this first tranche of the private placement, the Company paid finders’ fees of $39,080

and issued 390,800 finder’s warrants to arm’s length parties. Each finder’s warrant entitles the holder to

acquire one common share of the Co mpany at a price of $0.15 per shar e for a period of two (2) years

from the date of issuance.

All securities issued or issuable in connection with this first tranche of the private placement are subject

to a four month hold period expiring on August 29, 2017, in accordance with applicable securities laws.

The Company intends to use the proceeds of the priv ate placement for the following purposes: (i) first

cash payment on San Javier Mill (see news rel ease dated April 28, 2017) (CDN$345,000); (ii) fund

completion of a National Instrument 43-101 complia nt technical report on the Rebeico Gold-Copper

property currently under option (as disclosed in news releases dated December 8, 2016, February 8,

2017 and March 20, 2017) (CDN$27,000); and (iii) trans action costs including professional fees and

finder’s fees in connection with the private placement, and general working capital ($128,500).

ABOUT ARCTIC HUNTER ENERGY

The Company is a Canadian Oil & Gas explorati on and Mining resource deve lopment Company that

identifies, acquires and finances th e acquisition, exploration and development of mining and oil and gas

assets primarily situated in Western Canada and North America. The Company is currently a junior

heavy oil producer in the greater Lloydminster ar ea of Alberta & Saskatchewan. The Company is

continually reviewing future production and e xploration opportunities, th rough selective property

acquisitions and identifying low risk exploration drilli ng activities situated in Canada, the United States,

Mexico and abroad.

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FOR FURTHER INFORMATION, PLEASE CONTACT:

Tim Coupland, President and CEO

Arctic Hunter Energy Inc.

Tel: (604) 681-3131

[email protected]

or

Ted Burylo, Director

Arctic Hunter Energy Inc.

Tel: (604) 764-9178

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

Policies of the TSX Ventur e Exchange) accepts respon sibility for the adequacy or accuracy of this

release.