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Arctic Hunter Provides a Full Update ON the Refurbishment of the San Javier Mill – Completion of Structural Lighting and the Successful Completion and Testing of the Lighting System ____________________________________________________________________________________

Corporate Updates

ARCTIC HUNTER ENERGY INC.

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

Telephone: (604) 681-3131

NEWS RELEASE

August 24th, 2017 TSX-V Trading Symbol: AHU

______________________________________________________________________________________

ARCTIC HUNTER PROVIDES A FULL UPDATE ON THE REFURBISHMENT OF THE SAN

JAVIER MILL – COMPLETION OF STRUCTURAL LIGHTING AND THE SUCCESSFUL

COMPLETION AND TESTING OF THE LIGHTING SYSTEM

____________________________________________________________________________________

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

“Company”) is pleased to announce that the Company management has received a recently completed

report monitoring the rapid progress of the work bei ng conducted on the San Javier F lotation Mill

situated in the Gold & S ilver mining district of the Sierra Madre Gold belt, in the State of Sonora,

Mexico. The San Javier Mill is currently being re -furbished and upgraded to be a fully operational 100

Ton per day capacity flotation mill, by an experienced local Mexican Contractor, employing more than

twenty-five (25) local workers and skilled trades men who are now working around the clock in two,

twelve hour shifts per day, seven days a week. The San Jav ier Mill is cur rently on schedule and

complying with all budgetary guidelines and is expected to be commissioned in early fall 2017.

San Javier Mill infrastructure progress report- Activities includes the following:

• The complete upgrade of the Mill facilities electrical system and structural lighting has been

completed. The electrical system has been tested and deemed fully operational and is now

waiting to be connected to the regional power grid.

• Newly installed concrete fire-resistant power poles have replaced all obsolete old wooden poles.

The new poles have been installed along the 3 kilometer corridor connecting the San Javier Mill

with the r egional main electrical grid, situated at the highway access point at Kilometer 145.

New transformers have also been installed on site.

Tim Coupland, President & CEO stated, “ We are making excellent progress to date and continue

meeting our targets and we expect to be fully operational this fall. The Company is now moving quickly

to complete the re-furbishment and modernizing the San Javier Mill , with the expectation that the Mill

will be commissioned and fully operational in the fall of 2017. The Company is extremely pleased with

the speed and quality of work which is being conducted on the facility. T he San Javier Mill is nearing

completion, set-up, and equipment testing. The San Javier Mill is being fully modernized. with the intent

to identify and capture all potential milling and direct- ship mining opportunities that are situated within

this mining district with its many gold and silver mines.”

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THE SAN JAVIER MILL - SONORA STATE, MEXICO

The Company has now paid the sum of USD $250,000 and has successfully acquired a 30% interest in

Real de Rebeico Gold S.A. de C.V. (“Rebeico Gold”), the operator of a State owned 100 ton per day

flotation mill situated near the city of Hermosillo in Sonora State, Mexico. The formal option agreement

with Rebeic o Gold of Sonora, Mexico allows Arctic Hunter to earn the initial 30% interest for USD

$250,000 (earned and vested), and an additional 20% interest (for up to a 50% interest) in Rebeico Gold

for an additional USD $250,000. Rebeico Gold holds the right to operate the strategically located San

Javier Mill and the right to receive its pro -rata production proceeds derived therefrom pursuant to an

assignment agreement between Rebeico and Exlporacion y Desarollo del Desierto, S.A de C.V.

(“EDDSA”) dated April 24, 2017. EDDSA holds the right to operate and receive all proceeds from the

San Javier Mill and the right to conduct ancillary activities on the project site pursuant to a 10 year lease

agreement between EDDSA and the state of Sonora, Mexico, dated Februar y 24, 2015. The San Javier

Mill Project site is located within the heart of the prolific Sierra Madre Gold belt and mining district of

northern Mexico and is easily accessed by paved highway from the City of Hermosillo, Mexico. The

San Javier Mill is a fo rmer working and operational State owned flotation mill that is surrounded by a

region that has had widespread historical mining, dating back from colonial times through to the 21 st

century. The Mill formerly serviced many of the working gold, copper and s ilver mineral concessions

and mines located in this mining region in the past.

ABOUT ARCTIC HUNTER – MEXICAN GOLD EXPLORATION AND MILLING

PRODUCTION CAPABILITY

The Company is a Canadian Oil & Gas exploration and m ining resource development Company that is

now focused on acquiring production capabilities, obtaining potential future production revenues,

discovering and advancing high grade gold, silver and copper deposits and mining concessions situated

within a large mining district in Sonora, Mexico. The Company has now acquired a 30% i nterest in

Rebeico Gold of Sonora, Mexico, which holds the operating rights to the San Javier Mill, which gives

the Company the right to receive its share of proceeds from the San Javier Mill which is situated in the

Sierra Madre Gold Belt. The Company is now strategically positioned to identify and capture all

potential milling and direct- ship mining opportunities situated in the region. The Company identifies,

acquires and finances the acquisition, exploration and developm ent of mining and oil and gas assets

primarily situated in Western Canada and Mexico. The Company is continually reviewing future mining

production and exploration opportunities , through selective property acquisitions and identifying low

risk exploration and drilling activities situated in Canada, the United States, Mexico and abroad.

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

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

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

release.