Mr. Alexandre Gagnon reports

PETROLIA INC./ADOPTION OF WATER REGULATION: HALDIMAND 4 WELL TO PROCEED

Petrolia Inc. is commenting on the adoption of the regulation respecting water withdrawals and water protection (RRWWWP) by the Ministere du Developpement durable, de l'Environnement et de la Lutte contre les changements climatiques (MDDELCC).

This regulation stipulates that the minimum distance between a drilling site and a groundwater well must be 500 metres. The location of the Haldimand 4 well complies with the safe distances set out in this regulation. Petrolia reiterates that this is a conventional well without hydraulic fracking.

Adoption of this regulation invalidates the municipal regulation adopted by the City of Gaspe, and meets a joint request by the city and Petrolia. The RRWWWP and the hydrogeological study by the Institut national de la recherche scientifique -- Centre Eau Terre Environnement (INRS-ETE) released in May should answer the questions raised by the region. Work will be carried out in compliance with the highest safety and environmental standards, with respect for the community. Before work resumes, within the next three months, activities will be planned to ensure the public is well informed.

Alexandre Gagnon, president and chief executive officer of Petrolia, stated: "Petrolia is pleased to note that the government is following its action plan on hydrocarbons announced last May. This plan outlines the steps that will allow the province of Quebec and the industry to move towards production of hydrocarbons."

We seek Safe Harbor.