Sintana Energy Inc. Completes Debenture Offering

TORONTO, ONTARIO--(Marketwired - May 26, 2015) -

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Sintana Energy Inc. ("Sintana" or the "Company") (TSX VENTURE:SNN) is pleased to announce that it has completed its previously announced private placement (the "Offering") of secured convertible debentures in the aggregate principal amount of Cdn$1,000,000 (the "Debentures") to Mobius Resources Inc. ("Mobius"). The completion of the Offering is a condition to the closing of the previously announced business combination (the "Business Combination") between Sintana and Mobius pursuant to a master agreement dated as of May 13, 2015 between Sintana, Mobius and Ontario Inc. (the "Master Agreement").

The Debentures bear a one year term and are subject to a 5% interest rate, accruing annually. In the event that the requisite approval of the TSX Venture Exchange ("TSXV") is obtained, the Debentures shall be convertible at the option of the holder into common shares of Sintana at any time following the termination of the Master Agreement until maturity, at a conversion price equal to Cdn$0.075 per share (which TSXV approval must be obtained by June 1, 2015). In connection with the Offering, Sintana has provided Mobius with a general security interest over assets. The subsidiaries of Sintana have also provided secured guarantees of the obligations of Sintana pursuant to the Debentures. All securities issued and issuable pursuant to the Offering are subject to a hold period expiring September 27, 2015. The Offering remains subject to the final approval of the TSXV.

Completion of the Business Combination is subject to a number of conditions, including the receipt of all applicable approvals, including without limitation the approval by the TSXV and the requisite majority approval of shareholders of each of Sintana and Mobius. The Business Combination cannot close until the approval of shareholders of both Sintana and Mobius and all required regulatory approvals are obtained. There can be no assurance that the Business Combination will be completed as proposed or at all. Investors are cautioned that, except as disclosed in any management information circular to be prepared in connection with the Business Combination, any information released or received with respect to the proposed Business Combination may not be accurate or complete and should not be relied upon. Trading in the securities of Sintana should be considered highly speculative. The TSXV has in no way passed upon the merits of the proposed Business Combination and has neither approved nor disapproved the contents of this press release.