Palo Duro Energy Inc. Receives TSXV Conditional Approval

Vancouver, British Columbia--(Newsfile Corp. - June 22, 2015) - Palo Duro Energy Inc. (NEX: PDE.H) ("Palo Duro" or the "Company") is pleased to announce that it has received conditional approval from the TSX Venture Exchange of the proposed business combination with Tapango Resources Ltd. (NEX: TPA.H) and CarbonOne Technologies Inc. (the "Transaction").

A summary of the Transaction is provided in the Company's news releases dated April 20, 2015 and May 14, 2015.

The Company is also pleased to announce that it has delivered for mailing a joint management information circular, letter of transmittal and form of proxy (collectively, the "Meeting Materials") related to the annual and special meeting of the shareholders of the Company to be held July 15, 2015 (the "Meeting") to approve, among other things, the Transaction. The Meeting will be held at 10:00am (Vancouver time) at Suite 2900 - 550 Burrard Street, Vancouver, British Columbia, V6C 0A3. It is anticipated that the Meeting Materials will be mailed to shareholders of the Company on June 23, 2015.

For more information please contact:

Kurt Bordian, President and CEO
Palo Duro Energy Inc.
Suite 1560, 505 Burrard Street, Vancouver, B.C. V6X 1M5

Or

Investor Relations: 778-373-3740
Email: info@paloduro.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Completion of the Transaction is subject to a number of conditions, including Exchange acceptance and shareholder approval. The Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Information Circular prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). Certain information contained herein constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to: the Meeting and the mailing of the Meeting Materials to shareholders of the Company. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "anticipates" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, including: the ability to hold the Meeting and mail the Meeting Materials as contemplated. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.

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