Long Run Exploration Ltd. Enters Into Agreement for $200 Million Private Placement

CALGARY, ALBERTA--(Marketwired - Aug. 4, 2015) - Long Run Exploration Ltd. ("Long Run" or the "Company") (TSX:LRE) is pleased to announce that it has entered into an agreement for a private placement to Maple Marathon Investments Limited for gross proceeds of approximately $200 million. The proceeds from the private placement will be used for debt reduction to improve Long Run's capital structure.

Maple Marathon Investments Limited ("Maple Marathon") is owned by MIE Holdings Corporation ("MIE"), an independent oil and gas exploration company listed on the Hong Kong Stock Exchange (the "HKSE").

PRIVATE PLACEMENT

Long Run, Maple Marathon and MIE have entered into an investment agreement (the "Investment Agreement") pursuant to which Long Run will issue, by way of private placement (the "Private Placement"), to Maple Marathon 155,000,000 units ("Units") at an issue price of $1.30 per Unit.

Each Unit will comprise of: (i) one common share of Long Run ("Common Share"); (ii) one-fifth (1/5) of a Common Share purchase warrant ("18 Month Warrants") and (iii) one-fifth (1/5) of a Common Share purchase warrant ("24 Month Warrants"). Each whole 18 Month Warrant will entitle the holder to acquire one Common Share at an exercise price of $1.40 for a period of 18 months from closing of the Private Placement. Each whole 24 Month Warrant will entitle the holder to acquire one Common Share at an exercise price of $1.80 for a period of 24 months from closing of the Private Placement.

After giving effect to the Private Placement, Maple Marathon will hold approximately 43.9% of the issued and outstanding Common Shares of Long Run (after giving effect to the issuance of Common Shares pursuant to outstanding restricted awards and prior to giving effect to any exercise of the warrants). The Common Shares and warrants to be issued pursuant to the Private Placement will be subject to statutory resale restrictions for a period of six months and a day following closing of the Private Placement.

The closing of the Private Placement is subject to various conditions including approval by a majority of the shareholders of Long Run, approval of the shareholders of MIE, the receipt of required regulatory approvals (including the Toronto Stock Exchange (the "TSX") and approvals required under the Investment Canada Act and the Competition Act (Canada)). The closing of the Private Placement is also conditional on Maple Marathon securing financing to fund its subscription for the Units.