Molori Energy's Thompson 23-1R Well Flows Oil

Borger, Texas--(Newsfile Corp. - February 22, 2018) - Molori Energy Inc. (TSXV: MOL) (OTCQB: MOLOF) ("Molori" or "the Company") is pleased to announce a commercial oil discovery on its acreage in Moore County, Texas.

The "Thompson 23-1R" well, operated by Molori Energy, is a northern step-out well drilled in December 2017 where Molori Energy holds a seventy five percent (75%) working interest via its Thompson 26 and Thompson T2 leases. These leases directly adjoin to leases owned and operated by Adams Affiliates of Tulsa, OK, a successful operator and producer in the Red Cave trend. The Thompson 23-1R well is directly north of the active development area of Adams Affiliates.

As announced previously, he 23-1R well was completed on January 22nd, and was fractured with over 250,000 lbs sand and 340,000 gallons of slick water. The well has responded and produced on February 18th at 22 boepd*, 35 mcfd, and 61 bwpd for a blended production rate of approximately 28 boepd. The bulk of the water is load water which is consistently dropping with time, and the oil rate is steadily increasing with time. Peak production is expected within the next ten to fourteen days, following which Molori will be providing definitive results.

Furthermore, we have estimated that the reservoir pressure is 420 psia, which is consistent with original reservoir pressure in this area, and this location is not drained by offset production. The well log shows 100% oil pay with no gas cap. The log parameters are 37 feet of pay with 11.6% porosity with 39.8% Swi (Initial Water Saturation). These log results are very consistent with the near offset wells drilled recently by Adams Affiliates.

Commented Joel Dumaresq, CEO of Molori "We are extremely pleased with the 'discovery' and the initial results of our Thompson 23-1R well and frac into the Red Cave. The oil to water ratio continues to improve daily as we recover the water injected with the frac, and as a result we are experiencing daily increases in production."

Molori is expediting the installation of additional production tanks and moving forward with the continued development of its acreage in the area.

* Per BOE amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 MCF) of natural gas to one barrel (1 bbl) of crude oil. The BOE conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of natural gas as compared to oil is significantly different from the energy equivalent of 1:6, utilizing a conversion on a 1:6 basis may be misleading as an indication of value. The ratio of gas to oil is 22% gas and 78% as reported.

About Molori

Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The focus of the Company's exploration and development arm is the underdeveloped Red Cave formation, where Molori has engaged in a broad drilling program to assess and develop its acreage. Molori's business model is to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercializing and developing discoveries and pursuing selective acquisitions.

Molori's operating team, based in Borger, Texas have extensive experience in the oil and gas industry in the Texas Panhandle. The Company believes that the area represents a significant hydrocarbon basin in a well-developed region. By employing leading-edge exploration and frac techniques, Molori believes that the Company is well positioned to increase its production and reserves and further benefit from the opportunities that exist in the Texas Panhandle region.

For further information, please visit the Company's website at www.molorienergy.com or contact

Judy-Ann Pottinger
Communications Director
Molori Energy Inc.
(604) 617-5290
judy-ann@molorienergy.com
www.molorienergy.com

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Cautionary Notes Regarding Forward Looking Statements

This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking 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. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

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