Blackbird Energy Inc. Announces Spudding of First Middle Montney Well at Elmworth and the Closing of $7.0 Million Non-Brokered Tranche of Ongoing Private Placement

CALGARY, ALBERTA--(Marketwired - Oct. 20, 2014) - Blackbird Energy Inc. (TSX VENTURE:BBI) ("Blackbird" or the "Company") is pleased to announce that it has spud its first Middle Montney well at Elmworth. The well was spud from surface location 14-14-70-07W6 and will be drilled to a vertical depth of approximately 2,330 meters and a lateral length of approximately 2,000 meters to location 6-26-70-07W6. Drilling operations are expected to take approximately 30 days to complete.

Post completion of its first well, Blackbird will immediately commence the drilling of its second well at Elmworth targeting the Upper Montney.

Blackbird is also pleased to announce that it has closed the non-brokered tranche (the "Non-Brokered Tranche") of the private placement first announced on September 22, 2014 (the "Private Placement").

An aggregate of 24,138,241 special warrants (each, a "Special Warrant") for gross proceeds of $7,000,089 were issued pursuant to the Non-Brokered Tranche. Each Special Warrant entitles the holder thereof to receive, for no additional consideration upon its exercise or deemed exercise, one Common Share. The Special Warrants were issued pursuant to a special warrant indenture dated October 16, 2014 between Blackbird and Computershare Trust Company of Canada as special warrant agent.

The Company currently expects to close the brokered tranche of the Private Placement (the "Brokered Tranche") on or about October 21, 2014.

In connection with the Private Placement, the Corporation has agreed to prepare and file a prospectus (the "Qualification Prospectus") and all other necessary documents in order to qualify the Common Shares issuable upon conversion of the Special Warrants to subscribers resident in Canada, or otherwise subject to Canadian securities laws. The Corporation has agreed to use commercially reasonable best efforts to obtain a receipt for the Qualification Prospectus within 60 days of the closing date of the Brokered Tranche.

In connection with the Non-Brokered Tranche, the Company paid a cash finder's fee to various arm's length finders in the aggregate amount of $93,964.

In accordance with applicable securities laws, the Special Warrants are subject to a four month and one day hold period, expiring on February 18, 2015 unless a receipt for the Qualification Prospectus is obtained prior to such date.