Arctic Hunter Signs Letter of Intent to Acquire the Rebeico Gold/ Copper Project Situated in Sonora, Mexico from Yq Gold Corp de Mexico de C.v.and Announces a CDN $1.0 Million Dollar Non-Brokered Private Placement ____________________________________________________________________________________

ARCTIC HUNTER ENERGY INC.

Suite 1610 - 675 West Hastings Street · Vancouver · British Columbia · V6B 1N2 Telephone: (604) 681-3131

NEWS RELEASE

December 8, 2016 TSX-V Trading Symbol: AHU

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ARCTIC HUNTER SIGNS LETTER OF INTENT TO ACQUIRE THE REBEICO GOLD/ COPPER PROJECT SITUATED IN SONORA, MEXICO FROM YQ GOLD CORP DE MEXICO DE C.V.AND ANNOUNCES A CDN $1.0 MILLION DOLLAR NON-BROKERED PRIVATE PLACEMENT

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VANCOUVER, B.C. - Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the “Company”) is pleased to announce that it has entered into a non-binding letter of intent to acquire the Rebeico Gold-Copper Project situated in Sonora, Mexico. The letter of intent will be followed by the signing of a formal property option agreement with YQ Gold Corp de Mexico de C.V of Sonora, Mexico to earn a 100% interest in the Rebeico Gold-Copper Project for USD $2.35 million. The Rebeico project is located within the heart of the prolific Sierra Madre Gold belt of northern Mexico and is easily accessed by paved highway from the City of Hermosillo, Mexico. The Rebeico Gold-Copper Property is a former small-scale underground producer of gold and copper in this prolific mining region. Recently completed work, by YQ Gold includes, detailed geological mapping, detailed rock sampling and soil geochemical surveys. This comprehensive work has resulted in the expansion of previously known gold and copper mineralized zones. The main Rebeico vein system has been traced for more than 1 km on surface, with vein widths ranging from 0.40 meters to over 1.9 meters. Historical mining has occurred on the property with only a small portion of the historical mining occurring on the identified vein system. The Rebeico vein system remains open at depth below underground development levels and to date is untested by drilling. The Company has also identified a large approximately 400-meter X 600-meter gold bearing Breccia Zone that remains open in all directions and remains untested by drilling. Drilling is expected to commence in spring 2017. The final option agreement is subject to TSX approval.

Brian Game, P.Geo is an independent Qualified Person as defined in National Instrument #43-101 and is responsible for the preparation and approval of technical information disclosed in the news release.

LETTER OF INTENT - TERMS OF ACQUISITION /REBEICO GOLD PROJECT SONORA, MEXICO

1. Arctic Hunter may acquire a 100% interest in the Rebeico Gold property from YQ Gold by paying YQ Gold US $2.35 million in cash and stock and incurring $500,000 in exploration expenditures on the Property as follows:

a) paying YQ Gold USD $50,000 cash and issuing YQ Gold $150,000 worth of shares of Arctic Hunter on formal TSX Exchange Venture acceptance of the transaction;

b) paying $100,000 in cash and issuing $200,000 worth of shares of Arctic Hunter on the 6 month anniversary of TSX Exchange Venture acceptance of the transaction;

c) making additional cash payments totaling USD$1,850,000 to YQ Gold over 36 months.

d) incurring $500,000 of exploration expenditures on the Property within eighteen months of TSXV Venture acceptance of the transaction.

ARCTIC HUNTER ANNOUNCES CDN $1.0 MILLION DOLLAR NON-BROKERED PRIVATE PLACEMENT

The Company is pleased to announce a non-brokered private placement financing of common shares (“Common Shares”) at a price of CDN $0.10 per share to raise gross proceeds of up to CDN $1,000,000 (the “Offering”). Each Unit will consist of one (1) common share and one (1) common share purchase warrant, each warrant exercisable at a price of $0.15 per share for a period of two (2) years from the date of issuance. The private placement is subject to approval from the TSX Venture Exchange and all of the securities issued pursuant to the private placement will be subject to a four month hold period from the date of issue in accordance with applicable securities laws. The Company will have the option to increase the size of the offering by up to 25% prior to closing.

The Company has agreed to pay a finders’ fee to arm’s length parties for services rendered in respect of the Unit Offering. The finder’s fee will consist of a cash fee equal to 8% of the gross proceeds of the Unit Offering and finder’s warrants equal in number to 8% of the units sold under the offering. Each finder’s warrant will entitle the holder to acquire one common share of the Company at a price of $0.15 per share for a period of two (2) years from the date of issuance.

The Company intends to use the proceeds of the Offering to review and cover acquisition costs of the Rebeico Gold-Copper property, and review a number of oil & gas production and exploration opportunities that have been identified for acquisition. The Company continues to be highly selective, while considering its review of resource opportunities being presented to management.

ABOUT ARCTIC HUNTER ENERGY

The Company is a Canadian Oil & Gas exploration and resource development Company that identifies, acquires and finances the 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 area of Alberta & Saskatchewan. The Company is continually reviewing future production and exploration opportunities, through selective property acquisitions and identifying low risk exploration drilling activities situated in Canada, the United States and abroad.

The Company has qualified management and has an Oil & Gas team of professionals seasoned in production, field exploration and drilling. The Company has the resources and necessary manpower in place to develop its natural resource and manage its production properties. The Company is committed to minimizing risk through the selective acquisition, exploration and development of petroleum and natural gas resource assets. The Company intends to increase its oil production and reserves through its exploration activities and strategic property acquisitions.

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 Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.