Point Loma Resources Ltd. announced first oil production from the Corporation's Wizard Lake Rex oil discovery and provides an operational update. The Wizard Lake Rex oil discovery well has been producing for 10 days and continues to clean up with increasing oil rates. Point Loma will continue to optimize the well production and seek a stabilized initial rate. The API of the oil is 18.5 and is being sold as a medium grade crude price. As announced on May 30, 2019, the Corporation's partner, Salt Bush, has agreed to commence a two well farm-in program with the first delineation well to be spudded prior to August 15, 2019. A successful fully completed 2 well farm-out would result in three producing oil wells. Point Loma would be the operator with a 50% working interest in the Rex oil discovery well, a 25% BPO /50% APO working interest in both the farm-out wells and a 50% working interest in the remaining lands. Together with Salt Bush the acreage accumulated totals 3,385 acres and provides 18 potential drilling opportunities on the pool as currently mapped. Point Loma and Salt Bush have also secured the opportunity to drill and earn an additional 720 acres in the area adding to the total opportunities. A total of approximately $5 million of gross capital could be spent on the two well farm-out to delineate the pool at no cost to Point Loma. In addition to proved plus probable non-producing reserves of 150 mbbl (gross) (105 mbbl net to the Corporation) the Corporation received three additional proven undeveloped and one additional probable locations booked to the pool. In total the net proven and probable reserves booked were 525 mbbl of heavy oil with a net present value discounted at 10% of $8.8 million (before income tax) to the Corporation. This property represents a key oil discovery for Point Loma and will increase the oil production weighting for the Corporation significantly. At the current pumping rate the oil and ngl weighting for the Corporation has increased to 40%. As the well continues to clean up this could continue to increase and follow-up drilling could further move the production split to an even higher oil weighting. The Corporation expects that the farm-out with Salt Bush will further delineate the pool with a 1,400 m horizontal well and a 1,800 m horizontal well to be completed with multi-stage fracs. This is expected to assist in the confirmation of pool size and also oil productivity and will test the application of extended reach wells for further development of the pool. With the anticipated success of the two farm-out wells Point Loma projects additional revenues and expects to demonstrate the economics of full field development.