Exall Energy Corporation announced that in order to complete the previously announced refinancing, it has entered into a forbearance agreement with its current senior Canadian lender. The Forbearance Agreement allows for a monitor to report on, amongst other information, the progress relating to the refinancing under a monitoring agreement, and the initiation of a formal sales process in relation to the Company and its assets. On taking these steps, and provided Exall meets all its obligations under the Forbearance Agreement and the Monitoring Agreement, Exall's senior Canadian lender has agreed to a forbearance period that could extend until up to February 13, 2015.

Exall also announced that further to its October 6, 2014 announcement, one of the syndicate members that was providing the underlying funding for a debenture purchase agreement with a private Canadian lender is continuing the process that Exall expects will pay out Exall's existing facility with Exall's current senior Canadian lender in full, in consideration for an assignment of the Facility and the senior Canadian lender's security package. Exall expects that closing of this refinancing transaction will occur on or around November 14, 2014. If closing of the refinancing with the Lender is completed on the terms contemplated it would result in payment in full of all obligations owing to Exall's current senior Canadian lender and the Forbearance Agreement and the Monitoring Agreement would both terminate immediately.

The Lender intends to complete the original Agreement by mid-November with Exall, at which time the interim lender will be paid out in full by replacing the Facility with a $35 million debenture, fully secured by Exall's assets. At that point the other related transaction described in the September 25, 2014 Exall press release, being the purchase of 15 million common shares of Exall, at 20 cents per share, for total gross proceeds to Exall of $3,000,000 under a private placement, is expected to close.