North Sea Energy Announces the Results of Its Annual and General Meeting of Shareholders and Corporate Update

TORONTO, ONTARIO--(Marketwired - July 3, 2015) - North Sea Energy Inc. ("NSE" or the "Company") (TSX VENTURE:NUK) is pleased to announce the results of its Annual and General Meeting of Shareholders ("AGM") held on July 2, 2015 in its Toronto office.

Results of the AGM Meeting:

Shareholders voted for the re-election of J. Craig Anderson, C. Brent Austin, Larry Leblanc and Ian D. Lambert, as Directors of the Company until the next annual meeting of shareholders.

The shareholders also voted to re-appoint Grant Thornton Chartered Accountants as the Company's auditor for the ensuing year and authorized the directors to fix the auditors' remuneration.

Convertible Debenture Disclosure Update:

The $3.8 million convertible debenture (CD), issued to Mr. Karel Van de Velde (KVDV) on November 22, 2012, is subject to an Undertaking Agreement, signed at the same time, (UA) that restricted the convertibility of the CD to circumstances where, after conversion, KVDV would not hold more than 10% of issued and outstanding common shares of the Company.

Based on the agreement amending the CD signed in November, 2014 (Amending Agreement), the Company believed that the CD was forcibly convertible by the Company in certain circumstances following July 1, 2015. In addition, notwithstanding that KVDV's shareholding in the Company had exceeded 10% by other means, the Company believed that the UA was no longer applicable. The Company has recently learned that KVDV does not share its interpretation of the UA, as KVDV asserts that the UA prevents the Company from forcibly converting the CD since he holds more than 10% of the issued and outstanding common shares of the Company.

Now therefore, the Company's position is as follows: KVDV should fully comply with the stated intention of the UA; KVDV cannot convert the CD unless he is under the 10% threshold as required by the UA; and, pursuant to the terms of the Amending Agreement, the principal amount of the CD and any deferred interest thereon are no longer payable by the Company. The Amending Agreement stipulates that interest shall not accrue from May 22, 2015 on the principal amount and that the principal amount shall not be payable as a financing (as defined in the Amending Agreement) was not received and closed by the July 1, 2015 deadline.