TAG Oil Announces Upsize of Short-Form Prospectus Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 21, 2017) -

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TAG Oil Ltd. (the "Company" or "TAG Oil") (TSX:TAO)(OTCQX:TAOIF) is pleased to announce that, further to its press release on February 15, 2017, due to strong demand, the Company has increased the size of its previously announced short form prospectus offering (the "Offering") to up to 23,070,000 units ("Units") of the Company at a price per Unit of C$0.65 for aggregate gross proceeds of up to C$15,000,000. The Offering is being conducted through Mackie Research Capital Corporation and Pareto Securities Ltd., acting as co-lead agents and joint bookrunners on behalf of a syndicate of agents that is expected to include Eight Capital, GMP FirstEnergy, Roth Capital Partners LLC, TD Securities Inc., M Partners Inc. and PillarFour Securities Inc. (collectively, the "Agents").

Each Unit will consist of one common share of the Company ("Common Share") and one-half of one Common Share purchase warrant (each whole warrant a "Warrant"). Each Warrant shall be exercisable into one Common Share (a "Warrant Share") at a price of C$0.90 for 24 months following the closing date of the Offering. The Company has made an application to list the Common Shares, Warrants and Warrant Shares on the Toronto Stock Exchange.

In connection with the increased size of the Offering, the previously announced over-allotment option granted to the Agents has been removed from the Offering.

Closing of the Offering is expected to occur in mid-March 2017 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

A preliminary prospectus in respect of the Offering (the "Preliminary Prospectus") has been filed in all of the provinces of Canada (other than the province of Québec) pursuant to National Instrument 44-101 - Short Form Prospectus Distributions. The Offering may also be conducted in other jurisdictions, including the United States, Europe, Australia, the United Kingdom and such other jurisdictions as the Agents and the Company may agree pursuant to appropriate exemptions and registration requirements.