Northern Spirit Resources Inc. Announces Filing of First Quarter 2015 Financial Statements and Management's Discussion and Analysis

CALGARY, ALBERTA--(Marketwired - May 26, 2015) - Northern Spirit Resources Inc. ("Northern Spirit" or the "Company") (TSX VENTURE:NS) is pleased to announce that it has today filed its unaudited financial statements for the three months ended March 31, 2015 together with the related management's discussion and analysis ("MD&A") on the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.

HIGHLIGHTS FROM THE FIRST QUARTER OF 2015

• Production: The Company produced an average of 404 boe/d in Q1 of 2015 (89% oil), a 112% increase from an average of 191 boe/d (74% oil) in Q1 of 2014.
  
  
• Revenue, Funds From Operations⁽¹⁾ and Net Income: Revenue for the first quarter of 2015 reached $1.5 million, a 24% increase from $1.2 million for the first quarter of 2014. Funds from operations increased 17% to $725,328 in Q1 of 2015 from $621,816 for Q1 of 2014. Net income decreased 78% to $362,046 in the first quarter of 2015 from $1.6 million for the first quarter of 2014.
  
  
• Operating Netbacks⁽²⁾: Revenue averaged $40.84/boe in Q1 of 2015, a decrease of 41% from an average of $69.58/boe in Q1 of 2014. Operating (field) netbacks averaged $26.90/boe in the first quarter of 2015 a decrease of 37% from an average of $42.64/boe in the first quarter of 2014.
  
  
• 2015 Capital Expenditures: The Company has deferred all 2015 drilling and completion expenditures until the third and fourth quarters of 2015, pending improved commodity prices.
  
  
• Bank Loan Facility: The Company has increased its line of credit with its bankers from $5 million to $6.5 million effective May 25, 2015. As at March 31, 2015, the Company's credit facility was undrawn and as at May 26, 2015, the Company had $150,000 drawn on the credit facility.
  
  

Notes:

(1) Funds from operations is a non-IFRS measure. The comparable IFRS measure is cash flow from operating activities.

(2) Netback is a non-IFRS measure. Netback per boe is calculated by dividing the revenue and costs in total for the Company by the total production of the Company measured in boe.

About Northern Spirit Resources Inc.