Blackbird Energy Inc. Announces Common Share, CEE Flow-Through Common Share and CDE Flow-Through Common Share Financing for Total Gross Proceeds of Up to $80 Million

CALGARY, ALBERTA--(Marketwired - Feb. 27, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Blackbird Energy Inc. (TSX VENTURE:BBI) ("Blackbird" or the "Company") is pleased to announce that it has obtained a receipt for a preliminary short form prospectus (the "Preliminary Prospectus") which was filed with the securities regulatory authorities in each of the provinces of Canada, except Québec, in connection with a marketed public offering (the "Offering") of: (i) common shares of the Company ("Common Shares") for gross proceeds of up to $60 million; (ii) Common Shares to be issued on a "CEE flow-through" basis (the "CEE Flow-Through Shares") for gross proceeds of up to $15 million; and (iii) Common Shares to be issued on a "CDE flow-through" basis (the "CDE Flow-Through Shares") for gross proceeds of up to $5 million (and, collectively with the Common Shares and CEE Flow-Through Shares, the "Shares"), for aggregate gross proceeds of up to $80 million.

The Offering will be conducted through a syndicate of agents (the "Agents") co-led by Cormark Securities Inc., Pareto Securities AS and TD Securities Inc. (the "Co-Lead Agents"). The Agents have been granted an over-allotment option, exercisable in whole or in part for a period of up to 30 days following the Closing Date (as described below), to offer for sale up to an additional 15% of each of the Common Shares, CEE Flow-Through Shares and CDE Flow-Through Shares sold pursuant to the Offering, and such additional shares shall be issued on the same terms and at the same price as those otherwise sold under the Offering.

The Common Shares, CEE Flow-Through Shares and CDE Flow-Through Shares will be priced in the context of the market with the pricing to be determined by negotiation between the Co-Lead Agents and Blackbird.

The net proceeds of the Offering, including any proceeds received upon the exercise of the over-allotment option granted to the Agents, are expected to be used by the Company to fund the drilling and completion operations for approximately 12 Elmworth / Pipestone Montney wells and to incur related tie-in, equipping and pipeline gathering system costs, as well as for general corporate purposes. Please see "Use of Proceeds" in the Preliminary Prospectus for further details of the use of net proceeds from the Offering.