Virtus Oil and Gas Corp. (OTCBB:VOIL) entered into a purchase agreement to acquire 100% working interest in 4,149.7 Acres in two oil and gas leases in Beaver County, Utah from Pioneer Oil & Gas (OTCPK:POGS) for $0.46 million on October 19, 2013. The purchase price is payable by Virtus Oil and Gas as follows: $0.03 million on or before October 25, 2013, $0.03 million on or before December 25, 2013, $0.1 million on or before February 25, 2014, $0.1 million on or before April 25, 2014, $0.1 million on or before June 25, 2014 and $0.1 million on or before August 25, 2014. If Virtus Oil and Gas fails to make a payment on time, the purchase agreement will terminate. Virtus Oil and Gas made the initial $0.03 million payment on October 25, 2013. The leases will not be transferred to Virtus Oil and Gas until the purchase price has been paid in full; however, Virtus Oil and Gas is responsible for all lease payments beginning immediately. All payments made by Virtus Oil and Gas are non-refundable and will be forfeited to Pioneer Oil & Gas as liquidated damages if Virtus Oil and Gas does not pay the full purchase price to acquire the leases.

Upon payment of the final installment of the purchase price and no later than September 15, 2014, Virtus Oil and Gas will file and record with the Bureau of Land Management for the United States and relevant county recorder office all of the paperwork necessary to assign the leases to Virtus Oil and Gas.