Dalmac Energy Inc. announced that on August 18, 2016 it entered into a financing arrangement with BDC Capital Inc. for $1.5 million (the “Loan”), as the borrower. The Loan shall be repayable by way of one balloon payment of $1.5 million on August 31, 2021, with interest payable monthly until maturity and excess cash sweeps throughout the term of the Loan. The Initial BDCC Financing was amended on August 29, 2016 by a second amended and restated offer letter. The BDCC Financing is subject to a number of conditions and covenants, including maintenance of the required financial ratios and the payment of an additional compensation premium equal to 2.00% of the consolidated value of Dalmac and its corporate guarantors, those being Dalmac Oilfield Services Inc. and 1421771 Alberta Ltd. The proceeds of the BDCC Financing will be used for working capital. The closing of the BDCC Financing occurred on the date hereof. On August 29, 2016, as part of the BDCC Financing, Dalmac Oilfield also entered into a fifth amending agreement with PNC Bank Canada Branch, Dalmac Oilfield’s senior lender.