EnerGulf Announces the Acquisition of Columbus Copper

TORONTO, ONTARIO--(Marketwired - March 30, 2015) - EnerGulf Resources Inc. (TSX VENTURE:ENG) (FRANKFURT:EKS) ("the Company") is pleased to announce that it has entered into a binding Letter of Intent ("LOI") with Columbus Copper Corporation (TSX VENTURE:CCU) ("Columbus") pursuant to which the Company has conditionally agreed to acquire all of the outstanding common shares of Columbus in exchange for 9,200,000 common shares of the Company (the "Acquisition"). If successful, the Acquisition will likely be completed as a plan of arrangement under the Business Corporations Act (British Columbia). The LOI resulted from extended Arms-Length negotiations which culminated in a fully executed LOI dated March 24, 2015. The Company will acquire all of the approximately 18,634,798 common shares of Columbus expected to be outstanding at closing of the Acquisition which would result in an exchange ratio of 0.4937. Based on the closing prices of the Company ($0.14) and Columbus ($0.05) on March 23, 2015, the deemed value of the Acquisition would be $1,288,000 and the shareholders of Columbus would receive a premium of approximately 38.2%. The Company currently has 83,397,725 common shares outstanding.

"This merger is an excellent opportunity for both companies as it provides EnerGulf with a new hydrocarbon exploration project in Albania and capitalizes on the strength of our technical team. Columbus Copper benefits by merging with a Company that can advance the exploration project which could culminate in a series of drill-ready prospects over the coming years," commented John Elmore, President of EnerGulf. The acquisition will expand the scale of operations for the Company, strengthen financial resources available to the Company, diversity of projects to the Company, simplify and consolidate management, reduce the combined operating costs, and diversify the political risk to the Company. The Company believes the acquisition will enhance further acquisition opportunities and take advantage of exploration opportunities in the current reduced cost environment in anticipation of higher commodity prices in the future.