14 October 2016

     Mayan Energy Ltd / Index: AIM / Epic: MYN/ ISIN: VGG6622A1057 / Sector: Oil & 
                                          Gas                                      

                      Mayan Energy Ltd ("Mayan" or "the Company")                  

         Gas production brought on line.  Cost saving measures now kicking in.     

    Mayan Energy Ltd (AIM: MYN), the AIM listed oil and gas company, is pleased to
    announce the commencement of gas production from the Shoats Creek Field
    ("Shoats Creek") and the impact of cost cutting measures introduced by its new
    management team.

    Completion of Shoats Creek gas pipeline and initiation of gas sales

      * A 600 metre gas line has now been installed which enables oil and gas to be
        produced from wells at Shoats Creek, including inter alia: Lutcher Moore 14
        well ("LM14") and LM 20, as well as a number of other candidates for
        reconnection in the near to medium term.

      * LM 14 was the first well to be connected.  Operating on a tight choke,
        initial flow rates are reported as 1,300 thousand cubic feet per day
        ("Mcfd") and 30 barrels of oil per day ("bopd").  These flow rates are
        close to previously reported expectations, and the intention is to be
        conservative in managing the well, as producing at increased choke rates
        would be counterproductive to well life and production rates.  It is
        anticipated that after the first few weeks of production that rates will
        stabilise at approximately 300 Mcfd and 30 bopd.  Both initial and expected
        flow rates are gross rates produced by the well.  The net attributable to
        Mayan from LM 14 is expected to be approximately 900 Mcf gas and 25 bopd
        oil, stabilising at approximately 200 Mcfd gas, and 20 bopd oil.

      * LM 20 - which had not been anticipated to contribute gas has, following on
        from minor over haul work to the well which has opened it up to gas flow,
        now started delivering gas.  Revised production rates from LM 20 will be
        reported shortly, once they have been determined, as a down-hole pump still
        needs to be lowered and adjusted for proper influx of fluids.  As a result;
        LM 20 became the second well to be connected to the gas line.

      * Gas sales to Enerfin Field Services LLC, a subsidiary of Enerfin Resources
        Company (see RNS announcement dated 28 July 2016) will start at the end of
        the second week of October; with first cash flow expected in November
        2016.  Under the contract with Enerfin, and on the basis that daily
        production volumes are more than 1,000 Mcfd, the Company expects to receive
        Henry Hub sales price, less a 10% commission; below 1,000 Mcfd price
        received will be net of a 15% commission to Enerfin.

      * Mayan has a 70.00% working interest ("WI") and 52.78% net revenue interest
        ("NRI") in LM14, and a 20.00% WI and 15.08% NRI in LM 20 in respect of oil,
        and a 70.00% WI and 52.78% NRI in respect of gas;

      * Based upon oil and gas prices of US$ 40 per barrel, and US$2.5 per Mcf gas
        (against current spot prices of approximately US$50 per barrel and
        approximately US$3/ Mcf), the Company estimates that the impact of these
        oil and gas wells coming on stream will significantly increase Mayan
        monthly revenues.

    Operational profitability now achieved

      * Cost cutting introduced by the new management team over the last few months
        has reduced operational and administrative personnel costs by approximately
        US$60-70,000 per month and together with other measures now in place, put
        Mayan in a position where, for the first time and assuming the oil and gas
        price environment remains at current levels, its US operations have the
        potential to be operating on a profitable footing.

    Commenting on the above, Mayan's CEO Eddie Gonzalez said: "I am really pleased
    to report that we achieved this important production milestone.  I think it
    shows that together with the cost cutting measures we have taken, our new team
    is on track to meet another of our objectives: namely achieving US operational
    profitability.  And if we factor in the benefit of oil and gas prices, which
    have moved favourably upwards during the last few months, I would say that we
    are comfortably ahead of our game plan.

    "Looking ahead, we are now in a position to begin to unlock the value and cash
    flow from the Shoats Creek, and on the back of that, and our plans to monetise
    some of our non-core assets, we will then pick up speed in moving forward with
    our plans for Mexico.

    "Finally, I have to say that after a little more than a month in the job, I am
    really looking forward to keeping up the news flow of our progress against the
    targets that we have set ourselves, and in particular how we will be further
    improving returns to the Company, as we finesse and fill in the details of our
    previously reported plans for the development of our assets."

                                         ENDS                                      

    For further information visit http://www.mayanenergy.com/ or contact the
    following:

    Eddie Gonzalez            Mayan Energy Ltd                +  1 469 394 2008    
                                                                                   
    Charlie Wood              Mayan Energy Ltd                +44 7971 444 326     
                                                                                   
    Roland Cornish            Beaumont Cornish Ltd            +44 20 7628 3396     
                                                                                   
    James Biddle              Beaumont Cornish Ltd            +44 20 7628 3396     
                                                                                   
    Elliot Hance              Beaufort Securities Ltd         +44 20 7382 8300     
                                                                                   
    Nick Bealer               Cornhill Capital Limited        +44 20 7710 9612     
                                                                                   
    Elisabeth Cowell          St Brides Partners Limited      +44 20 7236 1177     

     Notes:

     1. Mayan Energy Limited is an AIM listed (London Stock Exchange) oil and gas
        energy company with a vision of building a midstream service (oil and gas
        waste management) and downstream operations business in Mexico ,exploiting
        the opportunities arising from the liberalisation of that country's energy
        sector.  This vision will complement the Company's present operations which
        are focussed on the redevelopment and enhancement of its upstream oil and
        gas interests in Oklahoma and Louisiana.
     2. This announcement contains inside information for the purposes of Article 7
        of the EU Regulation 596/2014.

    Qualified Person

    The technical information that is contained in this announcement has been
    reviewed by Mr. Kevin Green, a Consultant to the Company and a Petroleum
    Geologist who is a suitably qualified person with over 30 years' experience in
    assessing hydrocarbon reserves and who has consented to the inclusion of the
    technical information.