Fortem Resources Inc. announced the signing of a non-binding term sheet with an arm's length party (the Farmee), pursuant to which the company has agreed to farm-out a portion of its working interest in the Mancos formation located in Grand County, Utah (the property), held through its wholly-owned subsidiary Rolling Rock Resources, LLC and to establish a joint venture therewith (the joint venture), subject to the entry of a definitive transaction agreement (the definitive agreement).Pursuant to the terms of the term sheet, the Farmee will commit up to USD 15,000,000 (the commitment amount) in up to ten tranches (each, a "Tranche") in exchange for a 100% operating interest in certain wells located on the Property (the "Operating Interest"). Upon full payout of the Commitment Amount, the Company will be entitled to a 20% interest in the income generated from the Farmee's activities, which interest shall be increased to 25% following a 2.0x return of capital of the Farmee's investment (the "Carry Structure"). The Operating Interest in the agreed upon wells will be conveyed to the Farmee upon the execution of the Definitive Agreement for the Obligation Tranche and upon affirmative election by the Farmee to proceed with any Subsequent Tranche Within 90 days following the execution of the Definitive Agreement, the Farmee will commence re-entering and test the behind pipe potential of initial three wells identified in the Term Sheet (the "Obligation Tranche"). Following the initial production date of the last well brought to production in the Obligation Tranche, the Farmee will, within 90 days, at its sole option, have the option to form an additional Tranche of three wells (each, a "Subsequent Tranche") in which it will test the behind pipe potential of each Subsequent Tranche well identified. The Farmee will have 45 days to complete operations on the wells contained in each Subsequent Tranche. Following the initial production date of the last well brought to production in each Subsequent Tranche, the Farmee will, within 90 days, at its sole option, have the option to form an additional Subsequent Tranche (up to a maximum of 10 Subsequent Tranches). Failure to exercise a Subsequent Tranche in a timely manner precludes the Farmee from forming and participating in further Subsequent Tranches. Upon the execution of the Definitive Agreement for the Obligation Tranche and upon affirmative election by the Farmee to proceed with any Subsequent Tranche, the Joint Venture will be formed and governed in accordance with the terms of a joint venture agreement, the form of which will be settled and attached to the Definitive Agreement. A subsidiary of the Farmee, in collaboration with the Company and Rolling Rock, is anticipated to be the operator upon formation of the Joint Venture in regards to the participating wells. All costs related to the wellbores subsequent to re-entry, including plugging and abandonment costs, will be borne in proportion to the Carry Structure at the time of commencement of wellbore operations. No additional midstream fees are to be charged by the Company, Rolling Rock, any related party or affiliate thereof to the Farmee that are in excess of, or including a margin on top of the necessary operating expenses incurred to gather, compress, process, dehydrate, treat, and/or transport gas to sale. The Joint Venture and all gas produced as a direct result of the Farmee, the Company and Rolling Rock's activities will have primary service that takes precedent over any third party gas produce from the subject wells.