Q4 and Year End 2016 Results Published - Seite 2

The Company continued its discussions with its Sidi Moktar creditors to negotiate settlement of the remaining unpaid costs in respect to the Sidi Moktar drilling campaign. Subsequent to the year-end the Company successfully executed settlement agreements with a significant proportion of its unsecured creditors, and the Company continues to engage with the remaining unsecured creditors to execute settlement agreements.

PetroMaroc today filed its annual financial statements for the year ended December 31, 2016, together with its Management's Discussion and Analysis in respect of the Company's financial results for the year ended December 31, 2016. These documents are available on the PetroMaroc website at www.petromaroc.co or under the Company profile on SEDAR at www.sedar.com.

Highlights

Financial:

• Unrestricted cash as at December 31, 2016, of US$2.1 million (US$0.2 million as at December 31, 2015), US$0.5 million as at September 30, 2016.

• Working capital deficit as at December 31, 2016, US$0.2 million (excludes the Cdn$11.09 million secured debentures [& excludes Cdn $4.4 million accrued interest and fees as at December 31, 2016] which maturity date was extended from December 31, 2016 to January 31, 2018, excludes the Cdn$0.4 million unsecured loan [& accrued interest] which matured on December 31, 2016, includes US$0.6 million restricted cash).

• Secured full release of the US$2.5 million Sidi Moktar Bank Guarantee restricted cash in December 2016.

• Closed a Cdn$0.39 million secured debenture financing in June 2016, bearing interest at 15.0% per annum.

• Disposed of surplus inventory for proceeds of US$0.3 million in February 2016.

• The Company successfully restructured the Cdn $11.09 million principal amount of secured debentures, with the Debentures being rolled into a new class of secured redeemable, debentures, issuable in series (the "New Debentures"), with all principal and interest due and payable in full on January 31, 2018. The Series 1 New Debentures bear interest at the rate of 10% per annum and are convertible, at the option of the holder, into ordinary shares of the Company at a conversion price equal to $0.06 per share in the first 12 months of the term (January 1, 2017 to December 31, 2017) and $0.10 per share in the last month of the term (January 1, 2018 to January 31, 2018). The Series 2 New Debentures bear interest at the rate of 15% per annum, with no right to convert into ordinary shares of the Company. The Series 1 New Debentures and the Series 2 New Debentures shall bear an effective issue date of December 31, 2016, being the maturity date of the original Debentures. The Series 1 New Debentures and the Series 2 New Debentures shall rank pari passu with each other. In accordance with the terms of the New Debentures, the outstanding accrued interest and fees owing under the Debentures as at December 31, 2016 has been paid. The outstanding principal amount of the Series 1 New Debentures is Cdn $4,762,400 and the principal amount owing under the Series 2 New Debentures is Cdn $6,327,600. The Series 1 New Debentures are convertible into an aggregate of 79,373,333 ordinary shares, assuming a conversion price of $0.06 per share.

• Subsequent to the year-end, repaid the Cdn $0.4 million unsecured loan (& accrued interest) in January 2017.

• In February 2017, the Company disposed of 5,314,502 Sound Energy shares, to provide capital to meet its obligations of the Cdn $4,407,056 Debenture accrued interest and fees to the December 31, 2016 maturity date (Cdn $4,475,878 including the "stub" interest for the period January 1, 2017 to February 7, 2017 on the Debentures. The proceeds received (net of transaction costs, and net of proceeds above 50 pence being allocated equally between the Company and Sound Energy) totaled £3,841,555 (US $4,739,150).

• Continued to engage with its unsecured creditors from the Sidi Moktar campaign. Subsequent to the year-end a number of settlement agreements were successfully executed, with ongoing focus with the residual unsecured creditors.

Operations: