MARKSMEN ANNOUNCES CLOSING OF PRIVATE PLACEMENT AND EARLY WARNING REPORT

CALGARY, Alberta, March 20, 2020 (GLOBE NEWSWIRE) -- Marksmen Energy Inc. (“Marksmen” or the “Company”) announces that it has completed the closing of its previously announced non-brokered private placement of units (the “Units”) of Marksmen (the “Offering”). The Company issued 3,880,280 Units at a price of $0.05 per Unit for aggregate gross proceeds of $194,014. Each Unit is comprised of one (1) common share (“Common Share”) and one (1) share purchase warrant (“Warrant”) of Marksmen. Each whole Warrant entitles the holder thereof to purchase one Common Share at a price of $0.10 per share expiring two (2) years from the date of issuance.

Pursuant to the Offering, Marksmen paid a cash commission to a qualified non-related party of $1,600 and issued 32,000 broker warrants entitling the holder to acquire one Common Share at a price of $0.05 per share for a period of one (1) year from the date of issuance.

Marksmen intends to use the net proceeds from the Offering of $192,414 to pay $165,000 toward the recompletion of two wells targeting the Clinton Sandstone formation in Portage County, Ohio and the remaining $27,414 as working capital. Marksmen anticipates the first recompletion to begin the last week of March 2020 subject to weather, equipment availability or the State of Ohio initiating additional containment measures related to Covid-19.

Completion of the Offering is subject to regulatory approval including, but not limited to, the approval of the TSX Venture Exchange. The securities issued are subject to a four month hold period from the date of issuance.

The Company would like to thank its shareholders for their continued support during these uncertain times.

Related Party Participation in the Private Placement

Insiders subscribed for an aggregate of 1,170,000 Units in the Offering for a total of 30.15% of the Offering. As insiders of Marksmen participated in this Offering, it is deemed to be a “related party transaction” as defined under Multilateral Instrument 61-101-Protection of Minority Security Holders in Special Transactions (“MI 61-101”).

Neither the Company, nor to the knowledge of the Company after reasonable inquiry, a related party, has knowledge of any material information concerning the Company or its securities that has not been generally disclosed.

The Offering is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 (pursuant to subsections 5.5(c) and 5.7(1)(b)) as it was a distribution of securities for cash and neither the fair market value of the Units distributed to, nor the consideration received from, interested parties exceeded $2,500,000.