Suroco Energy Inc. Reaffirms Recommendation for Business Combination With Petroamerica and Updates Shareholders on Coercive Tactics of Vetra

CALGARY, ALBERTA--(Marketwired - June 17, 2014) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") announced that on June 11, 2014 its Board of Directors unanimously recommended that Suroco shareholders continue to vote their common shares in the capital of Suroco ("Suroco Shares") IN FAVOUR of the proposed plan of arrangement (the "Petroamerica Arrangement") with Petroamerica Oil Corp. ("Petroamerica") and REJECT the unsolicited offer (the "Vetra Offer") from Vetra Acquisition Ltd., a wholly owned subsidiary of VETRA Holding S.a.r.l. (collectively "Vetra") to purchase the issued and outstanding Suroco Shares.

Various market participants have commented on the inadequacy of the Vetra Offer and Vetra is now trying to coerce Suroco shareholders to vote their Suroco Shares against the Petroamerica Arrangement by amending its Soliciting Dealer Group Agreement dated June 9, 2014 to include the payment of a proxy solicitation fee to investment advisors who solicit Suroco shareholders to vote against the Petroamerica Arrangement. This tactic has been condemned by various Canadian market participants as it tends to distort financial advisor - investor relationships and compromises the independence of brokers and financial advisors, whose clients trust them to provide independent advice. This fee is calculated on a per share basis and is being offered by Vetra directly to investment advisors instead of being used to enhance the Vetra Offer to Suroco shareholders. Suroco Shares continue to trade well above the Vetra offer of $0.60 per Suroco Share and this fee offered by Vetra is of no direct benefit to Suroco shareholders and is being paid directly to investment advisors to solicit proxies which would permit the inferior Vetra Offer. Vetra's Offer has already been rejected by the Suroco Board of Directors.

Suroco reminds its shareholders that the Vetra Offer is highly conditional (to the benefit of Vetra) and contains no less than 25 conditions which must be satisfied or waived before Vetra is obligated to take up and pay for Suroco Shares deposited under the Vetra Offer (including conditions which cannot be satisfied and accordingly must be waived by Vetra). There are also other conditions which are not subject to a materiality threshold but rather provide Vetra with very broad discretion to decline to proceed with Vetra Offer.