Shoreline Energy Corp. Announces Asset Sale for Total Proceeds of $20.8 Million

CALGARY, ALBERTA--(Marketwired - July 31, 2014) -

NOT FOR DISTRIBUTION IN THE UNITED STATES

Shoreline Energy Corp. (TSX:SEQ) ("Shoreline" or the "Corporation") is pleased to announce that it has entered into a purchase and sale agreement (the "Agreement") to sell its interests in certain petroleum and natural gas properties (excluding royalty interests), wells and infrastructure located within the Valhalla and Progress Property boundaries in the Greater Peace River Arch area and associated Valhalla and Progress petroleum and natural gas assets to a qualified buyer (the "Transaction") for total proceeds of $20.8 million (before customary closing adjustments). The Agreement contains customary closing conditions and the Transaction is expected to close in mid-August, 2014.

The Transaction crystallizes value for the Corporation's stakeholders and provides an immediate improvement to Shoreline's balance sheet, as the proceeds from the asset sale will be used to reduce total corporate indebtedness.

RBC Capital Markets is acting as financial advisor to Shoreline in connection with Transaction and the ongoing strategic alternatives review process, which will continue to provide interested parties the opportunity to pursue transactions across Shoreline's complete suite of remaining assets.

Shoreline believes that, given its asset valuation as disclosed in its year-end financial statements, current strong commodity prices, and the positive responses to date on its strategic alternatives process, the strategic alternatives process will provide satisfactory results to stakeholders.

The Corporation cautions that there are no assurances or guarantees that (i) the ongoing strategic alternatives process will result in additional transactions; (ii) if additional transactions are undertaken, the terms or timing of such transactions will be satisfactory to all stakeholders; or (iii) the ongoing conditions of the Corporation's forbearance arrangements with its lenders will be met to the satisfaction of the lenders.

Investor Information

Shoreline is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. Shoreline offers investors a combination of value growth via lower risk development of additional oil reserves and production on its current lands. The Corporation's common shares and convertible unsecured subordinated debentures are currently listed on the TSX under the trading symbols "SEQ" and "SEQ.DB", respectively. Additional information regarding Shoreline is available under the Corporation's profile at www.sedar.com or at the Corporation's website, www.shorelineenergy.ca.