EnerGulf Closes Non-Brokered Private Placement

TORONTO, ONTARIO--(Marketwired - Feb. 4, 2015) - EnerGulf Resources Inc. (TSX VENTURE:ENG) (FRANKFURT:EKS) ("EnerGulf" or the "Company") is pleased to announce it has closed a non-brokered private placement (the "Private Placement") of 2,853,164 units (each a "Unit") of the Company at the price of $0.15 per Unit to raise gross proceeds of $427,974.60.

The Company's President, John Elmore commented, "the Company is pleased to close this Private Placement, aggregate insider participation was approximately 28% of this financing, which demonstrates the strong conviction of the EnerGulf team in the potential of our Lotshi and Block 1711 and our ability to advance our assets."

Each Unit consists of one common share of the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable for a period of 18 months to purchase one additional Share at a price of $0.25 per Share. If, after four months from the closing date, the closing price of the common shares of the Company on the TSX-V is $0.50 per share or higher over a period of 30 consecutive trading days, the Company will be entitled to accelerate the term of the unexercised Warrants upon notice to the holders thereof and the Warrants will then expire on the 20th day after the effective date of the giving of such notice.

Net Proceeds of the Private Placement will be used in seeking an extension of the Production sharing Sharing Contract ("PSC"), and Exploration Permit, for the Lotshi Block, Democratic Republic of Congo. In addition, the funds will be used to finalize the process of finding a farm-out partner for the Lotshi Block, usual license costs, geophysical consulting costs, and pre-drilling civil works projects to the Lotshi Block. Finally, the proceeds will be used to administer the Petroleum Agreement and Strategic Exploration Agreement for Block 1711, Republic of Namibia, and general operations of the Company.

In connection with the Private Placement, the Company issued 131,570 common shares (the "Finder's Shares") as finders' fees. All of the securities issued under the Private Placement, and all Shares issuable on the exercise of the Warrants, are subject to a hold period and may not be traded in Canada until June 5, 2015, except as permitted by applicable Canadian securities laws and the TSX Venture Exchange.