Point Loma Resources Ltd. to announce a farm-out on the Corporation's evolving Wizard Lake Rex oil discovery and provides an operational update. A successful fully completed two well farm-out would result in three producing oil wells. The company 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 test well and the earning well and a 50% working interest in the remaining lands. A total of approximately $5 million of gross capital would be spent on the two well farm-out to delineate the pool at no cost to the company. The company commenced construction of production facilities at its recently drilled and tested Rex oil discovery well in second quarter 2019. Production is currently expected to commence in early June 2019. As disclosed on January 21, 2019 the 16-17-48-27W4 well tested at rates in excess of 300 bpd of oil with increasing oil cuts through the end of the testing period which has led to substantial reserve bookings for the pool net to the company. After the flow test, actual oil sales were 55% above field measured amounts (actual oil sales of 2,849 bbls vs field measurements of 1,847 bbls). In addition to proved plus probable non-producing reserves of 150 mbbl (105 mbbl working interest) 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 oil with a net present value discounted at 10% of $8.8 million. This property represents a key oil discovery for The company and could increase the oil production weighting for the Corporation significantly. At tested rates this would represent a corporate shift of oil and ngl product weighting from approximately 30% to approximately 40-45% of the Corporation's total net production. Follow-up drilling could further move the production split to an even higher oil weighting. The farm-out with Salt Bush will delineate the pool with a 1,400m horizontal and a 1800m horizontal wells to be completed with multi-stage fracs. This is expected to assist in confirmation of pool size and also oil productivity and will test the application of extended reach wells for further development of the pool. With success on the two farm-out wells The company will not only receive additional revenues but should be able to demonstrate the economics of full field development.