Esrey Announces Debt Settlement and Withdrawal from Poland

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 1, 2015) - Esrey Energy Ltd. ("Esrey" or the "Company") (TSX VENTURE:EEL) is pleased to announce that it has entered into a debt settlement agreement to settle in full the matured non-revolving credit facilities owed by the Corporation's subsidiary, Kaynes Capital S.a.r.l. ("Kaynes"), to an arm's length creditor (the "Creditor"). At maturity Kaynes owed US$3,377,776 under the credit facilities.

In exchange for settlement of the amount due, the Company, through its wholly owned subsidiaries, will:

• Repay US$1,600,000;
• Fund the Creditor's share of certain work programs in Papua New Guinea ("PNG") that the parties are involved in; and
• For a period of 72 months after the date of closing, acquire any new oil and gas licenses in PNG through the Company's subsidiary, Telemu No. 18 Limited, in which the Creditor has a 15.75% indirect interest.

The debt settlement agreement closed effective March 31, 2015. Further details are available in the debt settlement agreement filed on www.sedar.com.

Esrey also announces the Company entered into a binding agreement to withdraw (the "Withdrawal Agreement") from the Company's Polish investment in Saponis Investments Sp. z.o.o. ("Saponis"). In accordance with the Withdrawal Agreement, the Company transferred its 42.96% interest in Saponis to BNK Poland Holdings B.V. ("BNK"), paid the final cash call of US$100,000 and assigned and forgave its loans receivable from Saponis in exchange for BNK assuming the future obligations of Saponis. The transaction closed on March 31, 2015.

Esrey announces the Company has granted 2,376,000 stock options pursuant to its previously approved stock option plan to directors, officers, employees and consultants of the Company. The options are exercisable over 5 years at an exercise price equal to the Company's closing price on April 2, 2015, with one third vesting immediately, one third in 6 months and one third in 12 months.

"While it is unfortunate that the unconventional reservoirs in Poland have failed to yield commercial results thus far, the Company is moving strongly forward and focusing upon our core conventional assets in Papua New Guinea. With a clean balance sheet, our near-term focus will be on the upcoming well to be drilled on our PPL 486 license in PNG and our ongoing evaluation of additional opportunities," remarked David Nelson, President and CEO.