Montana Exploration Corp. (TSXV:MTZ) signed a binding letter agreement to acquire Brilliant Resources Inc. (TSXV:BLT) from Salida Capital, Photon Global managed by Lionhart Advisors, directors and officers of Brilliant and other investors for CAD 8.3 million in stock on September 18, 2014. Under the terms of the agreement, Montana will issue to each Brilliant shareholder a fraction of a common share of Montana determined by the exchange ratio and a contingent value right entitling the holder to participate in the proceeds of the previously announced arbitration with the Government of Equatorial Guinea. The exchange ratio will be determined by multiplying Brilliant's net adjusted working capital at the effective time of the transaction by 1.15, then dividing that number by the then issued and outstanding shares, and dividing that number by the lower of the price per share at which the next material financing of common shares of Montana is completed and CAD 0.25. As a result of the arrangement, shareholders of Brilliant are expected to receive approximately 37.95 million Montana shares.

Following the completion of the arrangement, Brilliant Directors Allan Bezanson and John Hawkrigg will be nominated to Montana's Board of Directors. Current Brilliant Directors John Williamson and Courtenay Wolfe shall remain with Brilliant's Board of Directors. Concurrent to definitive agreement, Brilliant will advance a loan of CAD 4 million at interest of 10% per annum. The Directors of Brilliant believe that the arrangement is in the best interests of Brilliant and its shareholders. Completion of the transaction is subject to certain conditions, including completion of satisfactory due diligence, board approvals for the transaction prior to the definitive agreement, shareholder approvals prior to December 15, 2014 including the approval and entering into the agreement by October 22, 2014, receipt of all necessary consents, waivers, permits, exemptions, orders and approvals, including court approval of the plan of arrangement and the approval of the TSXV and a vote of at least 66 2/3% in favor of the transaction of Brilliant shareholders and any other Brilliant or Montana shareholders' approval which may be required. The transaction is expected to close by December 19, 2014. The transaction will terminate if the definitive agreement is not entered into by November 4, 2014.

Paul Davis of McMillan LLP acted as the legal advisor for Brilliant Resources Inc. and Charles Selby of Bennett Jones LLP acted as the legal advisor for Montana Exploration Corp.

Montana Exploration Corp. (TSXV:MTZ) cancelled the acquisition of Brilliant Resources Inc. (TSXV:BLT) on November 25, 2014. In light of falling oil prices and associated falling share prices, it is in the best interests of both Montana Exploration and Brilliant Resources not to proceed with the acquisition at this time.