Lightstream Announces $90 Million Debt Reduction and $250 Million Increase in Credit Availability Through Secured Note Issuance

CALGARY, ALBERTA--(Marketwired - July 2, 2015) - Lightstream Resources Ltd. (the "Company" or "Lightstream") (TSX:LTS) announces that we have entered into a privately negotiated agreement to issue a total of US$395 million in second lien notes ("Secured Notes") in exchange for US$465 million of existing 8.625% unsecured senior notes due 2020 ("Unsecured Notes") which will be cancelled. We have also agreed to issue to the same parties, with an expected closing in mid-July, an additional US$200 million in Secured Notes for cash proceeds, which we will use to reduce the borrowing amount under our credit facility. The borrowing base under our credit facility is unchanged at Cdn$750 million. RBC Capital Markets, LLC acted as our financial advisor in connection with these transactions.

The Secured Notes bear interest at 9.875% and mature June 15, 2019. The notes are secured by second-priority liens on all of Lightstream's assets which rank behind the security under our credit facility. The exchange transaction reduces our debt by approximately Cdn$90 million, which also reduces annual cash interest expense associated with our Unsecured Notes and Secured Notes collectively by Cdn$1.3 million. In addition, if we complete the issuance of Secured Notes for cash in mid-July 2015, we will reduce the outstanding borrowing under our credit facility by approximately Cdn$250 million, which would increase the credit available under the credit facility to approximately Cdn$375million.

The Secured Notes have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act of 1933, as amended. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Secured Notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

Lightstream Resources Ltd. is an oil and gas exploration and production company focused on light oil in the Bakken and Cardium resource plays. We are committed to delivering industry leading operating netbacks, strong cash flows and consistent operating results through leading edge technology applied to a multi-year inventory of existing and emerging resource play opportunities. Our long-term strategy is to efficiently develop our assets and deliver an attractive dividend yield.