Canamax Energy Ltd. and Powder Mountain Energy Ltd. Announce Closing of Business Combination

CALGARY, AB--(Marketwired - July 30, 2015) -

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Canamax Energy Ltd. ("Canamax") (TSX VENTURE: CAC) and Powder Mountain Energy Ltd. ("Powder") (TSX VENTURE: PDM) are pleased to announce the completion of the acquisition by Canamax of all of the issued and outstanding common shares of Powder (the "Powder Shares") by way of a previously announced plan of arrangement (the "Arrangement") under the Business Corporations Act (Alberta). With the completion of both the Arrangement and the previously announced acquisition of assets in the Grimshaw and Grande Prairie areas of Alberta, Canamax is well positioned as a junior oil and gas company with an undrawn bank credit facility of $21.0 million, estimated cash and working capital of $3 to $4 million, and significant development potential in its core areas of operation.

Business Combination

The Arrangement was approved at the special meeting of the shareholders of Powder held on July 29, 2015 by over 99% of the votes cast by the Powder shareholders present in person or represented by proxy. Final approval of the Arrangement was received from the Court of Queen's Bench of Alberta on July 30, 2015.

Pursuant to the Arrangement, Canamax acquired all of Powder's outstanding common shares for total consideration of $27.6 million. The total consideration paid was based on Powder's estimated working capital surplus (substantially all cash) of $21.7 million at July 30, 2015 plus an attributed value of $5.9 million for Powder's existing lands, production and reserves.

For each Powder Share held, Powder shareholders received 0.954667 (the "Exchange Ratio") common shares of Canamax (the "Canamax Shares") at a deemed price of $0.60 per Canamax Share. Based on the Exchange Ratio, the value of each Powder Share exchanged for a Canamax Share was deemed at approximately $0.57. In aggregate, Canamax issued approximately 45.9 million Canamax Shares pursuant to the Arrangement; with the result that, after the completion of the Arrangement, Canamax has approximately 114.8 million common shares outstanding. As a result of the completion of the Arrangement, Canamax now has one shareholder owning more than 10% of the issued and outstanding Canamax Shares. For further details, please see below under the heading "32 Degrees".