Mr. Shane Ferster reports

SYNSTREAM ENERGY CORP. SIGNS A MEMORANDUM OF UNDERSTANDING WITH STERLING GREYROCK PARTNERS LLC FOR THE INSTALLATION OF A SMALL SCALE "GAS TO LIQUIDS" PLANT

Synstream Energy Corp. and its partner Expander Energy Inc. have signed a memorandum of understanding with Sterling Greyrock Partners LLC (SGP) to purchase SGP's Greyrock S-Class "gas to liquids" (GTL) plant. Under terms of the MOU, signed Aug. 5, 2016, Synstream and Expander will have 90 days to complete due diligence and entering into a formal purchase and sales agreement.

Synstream intends to build and operate Enhanced GTL SynDiesel plants under licence from Expander, as previously announced. Expander's Enhanced GTL SynDiesel plants are feedstock flexible, and are capable of converting natural gas, natural gas liquids and liquid petroleum gas into zero-sulphur, high-cetane synthetic diesel and jet fuel. Synstream intends to work collaboratively with oil and natural producers to monetize low-value NG/NGL/LPG, eliminating the need to dispose of these resources by costly reinjection or flaring. Synstream, Expander and their partners are currently evaluating a suitable location to site Canada's first Enhanced GTL SynDiesel plant.

Expander's SynDiesel fuel is a premium, zero-sulphur, high-cetane, zero-aromatic paraffinic diesel, meeting existing ASTM and European standards for ultralow-sulphur diesel (ULSD). SynDiesel is a "drop-in" fuel that does not require specialized fuelling stations or engine technology such as LNG or CNG. SynDiesel can be blended with petroleum-based diesel to upgrade performance and lower greenhouse gas (GHG) emissions. SynDiesel is expected to reduce tailpiped GHGs by up to 9 per cent and meet the Canadian/U.S. low-carbon fuel standard when compared with petroleum-based diesel fuel.

About Synstream Energy Corp.

Synstream continues to evaluate business development opportunities in the petroleum and natural gas resource sectors, focusing on its partnership between with Expander and a consortium of private investors to build Canada's first small-scale commercial Enhanced GTL plant in Alberta.