Crown Point Responds to Misleading Comments from Dissident

CALGARY, ALBERTA--(Marketwired - Dec. 22, 2014) - Crown Point Energy Inc. ("Crown Point" or the "Company") (TSX VENTURE:CWV) today responded to misleading comments made by dissident shareholder LAIG Oil Investments ("LAIG") regarding Crown Point and its transformative equity financing (the "Strategic Financing") with two strategic Argentinian investors.

"Our Strategic Financing is a transformative move for Crown Point that we have been working on since March," said Gordon Kettleson, Chairman of Crown Point. "Our ability to attract capital and investment in current market conditions speaks to the high quality of our assets and the experience of our management team."

"The Strategic Financing is superior in all respects to an opportunistic, coercive and highly dilutive financing (the "Inferior Proposal") proposed by LAIG. We believe LAIG is misrepresenting the facts about this financing and is pursuing this costly proxy contest to facilitate its opportunistic play for control of the Company," continued Mr. Kettleson.

"Because our priority was to focus on closing the first tranche of the Strategic Financing and our operations, we have not previously responded to LAIG's misrepresentations. Now that the first tranche has closed and we have solid exploration and development momentum, we want to be sure that shareholders are aware of the facts when assessing LAIG's motives and credibility."

Crown Point's Strategic Financing vs. LAIG's Inferior Proposal

LAIG has failed to disclose its real motivation for launching its costly proxy fight, which is to impose its Inferior Proposal on Crown Point for the benefit of LAIG at the expense of all other Crown Point shareholders.

Just prior to the Strategic Financing announcement in November, the Board rejected a demand by LAIG that Crown Point negotiate exclusively with LAIG to conclude the Inferior Proposal. Compared with the Strategic Financing, the terms demanded by LAIG are substantially less favourable to Crown Point and its shareholders, other than LAIG itself.

Shareholders should be aware of the following facts that LAIG should have disclosed, but did not:

• LAIG's Demand For C$0.20 Units − LAIG demanded that Crown Point's share capital be increased by more than 25% through an issue of common shares and warrants to LAIG at just C$0.20 per unit. LAIG's disclosure omission is significant given its inaccurate criticism of the more favourable terms of the Strategic Financing, which is at a share issue price of approximately C$0.29 per share, a full 45% premium to LAIG's Inferior Proposal.