Hutton Energy Plc entered into a term sheet to acquire Newton Energy UK Limited from Newton Energy Corporation (TSXV:NTN) for £0.71 million on July 3, 2014. Of the purchase price, £0.5 million, less £0.45 million for working capital adjustments will be paid on signing of the definitive agreement and £0.25 million will be paid on June 30, 2015. Hutton will also give Newton Energy 5% royalty on any hydrocarbons sold under the licences, will fund the costs to drill or abandon one well on the Newton UK licences, Newton Energy will receive 75% of the proceeds from a farm-in by a third party on the Newton UK licences prior to June 30, 2015 originated by Newton and Newton Energy will receive 25% of the proceeds from a farm-in by a third party on the Newton UK licences prior to June 30, 2015 originated by Hutton. The funds received by Newton pursuant to this clause will be deducted from the £0.25 million payment on June 30, 2015.

The transaction is subject to satisfactory completion of due diligence, all applicable corporate and regulatory approvals and approval of shareholders of Newton Energy Corporation. As on September 30, 2014, Hutton Energy Plc entered into an agreement to acquire Newton Energy UK Limited from Newton Energy Corporation (TSXV:NTN).