Mediterranean Resources Ltd. and Transeastern Power Trust Announce Arrangement Agreement, Interim Court Order and Filing of Meeting Materials

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 31, 2015) -

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Mediterranean Resources Ltd. (NEX:MNR) ("Mediterranean" or "MNR") and Transeastern Power Trust (TSX VENTURE:TEP.UN) ("Transeastern") are pleased to announce that they have entered into an arrangement agreement dated August 27, 2015 ("the Arrangement Agreement"), whereby Transeastern will acquire all of the issued and outstanding common shares of Mediterranean on the terms described in Transeastern and Mediterranean's joint press release of July 10, 2015 (the "Transaction"). On August 28, 2015, Mediterranean obtained an interim order from the British Columbia Supreme Court with respect to the calling and holding of an annual general and special meeting of the shareholders of MNR (the "Shareholders") to consider the Transaction and other matters. The TSX Venture Exchange ("TSXV") has also conditionally approved the Transaction for both Mediterranean and Transeastern.

Mediterranean has filed its Notice and Information Circular and related meeting materials (collectively, the "Meeting Materials") in connection with the annual general and special meeting of Shareholders on SEDAR at www.sedar.com under Mediterranean's profile. The Meeting Materials include a fairness opinion dated August 24, 2015 (the "Fairness Opinion") which has been prepared for the board of directors of Mediterranean by Stephen Semeniuk, CFA. In the Fairness Opinion, Mr. Semeniuk concluded that, subject to the assumptions, qualifications and limitations contained in the Fairness Opinion, as of August 24, 2015, the Transaction was fair, from a financial point of view, to the Mediterranean Shareholders. Reference should be made to the full text of the Fairness Opinion which is included at Schedule "G" to the Information Circular included in the Meeting Materials.

"We are very pleased to have entered into the definitive Arrangement Agreement with Transeastern," stated Mediterranean's Chairman and CEO, Robert Abenante. "As we worked through the due diligence process, our confidence increased that the Transaction has great potential to create value for Shareholders."

In reaching the determination to approve and enter into the Arrangement Agreement, the board of directors of Mediterranean (the "Board") considered, among other things, the following factors and potential benefits and risks of the Transaction: