Nostra Terra Completes Acquisition of East Ghazalat Interest

Nostra Terra, an oil and gas exploration and production company with a growing portfolio of producing and exploration prospects, in a newly-formed joint venture ("JVCO") with Independent Resources plc, is pleased to announce the completion of the acquisition of the 50 per cent. interest in the East Ghazalat concession in Egypt from TransGlobe Petroleum International Inc, a wholly owned subsidiary of TransGlobe Energy Corporation ("TransGlobe or the Vendor") for US$3.5 million (the "Acquisition"), as first announced on 6 October 2015.

The Vendor has agreed to issue a loan note for US$2.5 million and the remaining cash element due has been funded from cash and an existing third party loan facility arranged by Nostra Terra. No shares have been issued by either Nostra Terra or Independent Resources in conjunction with the Acquisition. The loan note bears interest at 10 per. cent per annum payable on a semi-annual basis and must be redeemed by JVCO by 30 September 2017. The effective date of the closing is 1 July 2015. The immediate priorities of JVCO are to improve operating margins through cost reduction initiatives, and to implement further reserve enhancement opportunities in a disciplined and rigorous manner.

In conjunction with Independent Resources, we continue through JVCO to appraise a number of other acquisition opportunities in the region. We look forward to updating shareholders on further progress.

Matt Lofgran, CEO of Nostra Terra Oil & Gas, commented:
"I'm very pleased to announce the closing of our first acquisition outside of the USA, with Independent Resources, and the start of a diversified approach to increased levels of production and cash generation. The asset provides an opportunity to measurably impact on cash flows. We look forward to an exciting future with Independent Resources as there are many opportunities which we believe we can now consider.

"We were able to obtain financing from the seller on very good terms while keeping the acquisition non-dilutive to shareholders. While we continue to look at other potential assets to acquire, our operational team is in the first instance keenly focused on improving production and margins in this field."

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