Lightstream Announces Receipt of Commitment Letters, Amendments to Recapitalization Support Agreement and Revised Meetings Date

CALGARY, ALBERTA--(Marketwired - Aug. 26, 2016) - Lightstream Resources Ltd. (the "Company" or "Lightstream") (TSX:LTS) announces that, in connection with our previously announced proposed recapitalization transaction to be implemented by way of a plan of arrangement (the "Arrangement") under the Canada Business Corporations Act (the "CBCA"), the Company has obtained commitments from a syndicate of lenders to provide a new CDN$400 million revolving credit facility to the Company upon completion of the Arrangement (the "New Facility Commitments").

In conjunction with obtaining the New Facility Commitments, the Company and the ad hoc committee (the "Ad Hoc Committee") of certain holders (the "Secured Noteholders") of the Company's 9.875% second lien secured notes due 2019 (the "Secured Notes") have agreed to certain amendments to the previously announced restructuring support agreement dated July 12, 2016 (the "Support Agreement"). The amendments generally require that the Company's shareholder and noteholder meeting be moved from September 13, 2016 and be held no later than September 30, 2016, as described in further detail below, and require that the Company reach an acceptable settlement of the litigation (the "Unsecured Noteholder Litigation") with certain holders of the Company's US$254 million of 8.625% unsecured notes due February 1, 2020 (the "Unsecured Notes") on or before September 16, 2016. If the Unsecured Noteholder Litigation is not settled in a manner satisfactory to both the Company and the Ad Hoc Committee on or before September 16, 2016, the revised Support Agreement requires the Company, subject to the consent of the Ad Hoc Committee, to discontinue the CBCA Arrangement (without having held the shareholder and noteholder meetings described below), commence proceedings under the Companies' Creditors Arrangement Act (the "CCAA") and seek an initial order under the CCAA for the purposes of implementing a sale transaction under the CCAA (a "CCAA Sale Transaction") by way of a credit bid by the Secured Noteholders or other form of transaction within the CCAA proceedings acceptable to both the Company and the Ad Hoc Committee, all subject to the terms and conditions of the amended and restated Support Agreement.