Fortem Resources Inc. Provides Corporate Update

VANCOUVER, British Columbia, May 26, 2020 (GLOBE NEWSWIRE) -- Fortem Resources Inc. (TSXV: FTM; OTCQB: FTMR) (the “Company” or “Fortem”) would like to provide its shareholders with a general corporate update. Company management has been working diligently and extensively with the Alberta Securities Commission (“ASC”) to process the revocation of the Cease Trade Order (“CTO”) issued by the ASC. The Company continues to respond to comments from the ASC and feels confident that it will be able to obtain a resolution to the CTO in the near future. In the meantime, the Company continues to maintain its day to day operations and is current with all its required filings. The Company is also pleased to announce that is has commenced working on the audit of its annual financial statements for the year ended February 29, 2020 and looks forward to filing these as soon as they are prepared.

Chief Operating Officer, Michael Caetano comments: “It’s been almost a year since the issuance of the CTO against the Company, which has prevented us from moving forward on various plans. Despite the unexpected turbulence brought by the CTO and current markets conditions, management of the Company continues to look towards building the Company according to plan while at the same time seeking new energy opportunities. We thank all our shareholders for their patience’s and understanding.”

Utah Assets

On May 22, 2020, but effective as of March 1, 2017, the Company’s wholly-owned subsidiary Black Dragon Energy, LLC (“Black Dragon”) entered into a Fifth Amendment to Purchase and Sale Agreement (the “BD Amendment”), which amended the terms of the Purchase and Sale Agreement dated effective March 1, 2017 (the “BD PSA”), between WEM Dragon, LLC (“WEM”) and Black Dragon with respect to the Moenkopi Formation and has the effect of:

• postponing the payment of the remaining US$3.8M owed under the BD PSA relating to certain of its Utah property interests (Moenkopi Formation) until receipt of one or more financings by the Company (or certain of its subsidiaries), in which case the Company must pay 12.5% of the proceeds of each financing close until payment in full;
  
  
• extending the outside date of full payment of the remaining US$3.8M to August 1, 2020;
  
  
• extending the “Obligation Deadline” for drilling obligations to August 1, 2020;
  
  
• requiring the Company to re-enter and perform workover operations reasonably aimed at cleaning out the bore of the Wellington Flats Well and restoring that well to production on or prior to August 1, 2020; and