Suroco Energy Inc. Reconfirms Unanimous Director Support for Petroamerica Arrangement and Provides an Update to Shareholders

CALGARY, ALBERTA--(Marketwired - June 27, 2014) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Suroco Energy Inc. (TSX VENTURE:SRN) ("Suroco" or the "Corporation") would like to provide an update to its shareholders in light of the statements and assertions being exchanged in connection with the competing offers for the Corporation.

As shareholders are aware, on June 23, 2014, Vetra Acquisition Ltd., a wholly owned subsidiary of VETRA Holding S.a.r.l (collectively, "Vetra") announced that it had increased the price of its offer to purchase all of the common shares of Suroco to $0.83 in cash per common share (the "Vetra Offer").

The Board of Directors of Suroco confirms that at this time it has not withdrawn, modified, or changed its previous recommendations and determinations with respect to the Petroamerica Arrangement (as defined below), and reaffirms that the Board of Directors has unanimously determined that the Petroamerica Arrangement is in the best interests of Suroco, is fair, from a financial point of view, to the shareholders of Suroco and has unanimously approved the Petroamerica Arrangement and the entering into of the Arrangement Agreement (as defined below) and has resolved to recommend shareholders of Suroco vote in favour of the Petroamerica Arrangement.

Notwithstanding that the Board of Directors of Suroco continues to consider the Vetra Offer, Suroco is NOT in possession of a firm offer from Vetra on terms and conditions acceptable to Suroco. Suroco remains in possession of a very certain agreement with Petroamerica Oil Corp ("Petroamerica"), which provides Suroco's shareholders with the option of taking cash or shares or cash and shares of Petroamerica, and affords them with the opportunity to participate in the upside of the combined company, if they choose.

Suroco has entered into an arrangement agreement dated April 26, 2014 (the "Arrangement Agreement"), as amended by the agreement to amend the arrangement agreement dated June 19, 2014, between Petroamerica and Suroco, wherein Petroamerica will acquire all of the issued and outstanding common shares of Suroco (the "Petroamerica Arrangement"). The May 27, 2014 Management Information Circular and Proxy Statement of the Corporation, as supplemented by the Supplement to the Management Information Circular and Proxy Statement of the Corporation dated June 22, 2014, provides a detailed description of the Petroamerica Arrangement. Copies of both documents are available on Suroco's profile on SEDAR at www.sedar.com.