Suparna Gold Obtains Right to Acquire Working Interest in Disposal Well

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 31, 2014) - Suparna Gold Corp. ("Suparna") (TSX VENTURE:SUG) is pleased to announce that it has entered into an assignment agreement (the "Assignment Agreement") with a private British Columbia corporation ("PrivateCo") and XS Energy Ltd. ("XS") pursuant to which Suparna has obtained the right to acquire a 75% working interest in, and to, a disposal well, surface lease and related assets (the "Assets") located in Drayton Valley, Alberta at 102/06-10-049-06 W5M (the "Transaction"). On October 8, 2014, Private Co and XS entered into a letter agreement (the "Letter Agreement") related to the Transaction and the Assignment Agreement now provides for the assignment to Suparna of all of PrivateCo's right, title, interest and obligations in, to and under the Letter Agreement.

When the Letter Agreement was executed, Private Co paid to XS the sum of $150,000 (the "Standstill Payment") and, in conjunction with the entering into of the Assignment Agreement, Suparna, in turn, paid to PrivateCo the sum of $150,000. In consideration for the Standstill Payment, XS has agreed to immediately cease and cause to be terminated all discussions, solicitations and negotiations, if any, with any other parties (other than Suparna) in relation to the Assets (the "Standstill Obligations"). If at any time XS is in breach of its Standstill Obligations, then Suparna shall have the right to immediately terminate the Letter Agreement and XS shall pay to Suparna the amount of $150,000.

The Letter Agreement provides that Suparna may acquire a 75% working interest in, and to, the Assets as follows: (i) the sum of $350,000 (the "Permit Payment") shall be paid to XS upon the later of the execution of a definitive agreement (the "Definitive Agreement") and XS's receipt of a Class 1B disposal permit (the "Class 1B Permit") in respect of the Assets from the Alberta Energy Regulator; and (ii) the sum of $3,650,000 shall be paid in trust to XS's solicitors (the "Trust Payment") upon XS obtaining the requisite disposal, well and resource licenses and other requisite approvals in respect of the Assets from the Alberta Energy Regulator (the "Licenses"). These funds shall be used by XS to, among other things, obtain the Class 1B Permit and Licenses, engage a land services company to issue notices and talk to land owners in the immediate area of the disposal well, complete construction of a water disposal facility and purchase related equipment (collectively, the "Facility Costs"). If XS is ultimately unable to obtain the requisite Licenses, Suparna shall nevertheless be deemed to have earned a 75% working interest in, and to, the Assets.