HIT Technologies Reports Third Quarter Fiscal 2017 Results

VANCOUVER, BC—(Marketwired – May 30, 2017) – HIT Technologies Inc. (TSX VENTURE: HIT) (“HIT” or the “Company”), which designs, develops, manufactures and distributes the world's most advanced adventure products for iPhone, today reported its third quarter (Q3 F2017) financial and operating results for the quarter and nine months ended March 31, 2017 prepared in accordance with International Financial Reporting Standards (IFRS). All results are reported in Canadian dollars unless otherwise stated.

 
Selected Quarter and Year to Date Information
                 
    Q3– Fiscal 2017   Q3–Fiscal 2016   9mo to March 31, 2017   9mo to March 31, 2016
Revenue   $147,459   $365,749   $599,510   $1,457,231
  % Increase over Prior Year   –60%       –59%    
Gross Margin                
  Gross Margin %   30%   37%   34%   31%
Operating Expenses
(excluding non–cash and cost of sales)
  $447,826   $716,731   $1,371,202   $2,803,600
  % change over Prior Year   –38%       –51%    
Adjusted EBITDA (Loss)   $(426,830)   $(562,747)   $(1,211,661)   $(2,344,409)
  % change over Prior Year   –24%       –48%    
 Net (Loss)                
  Per share, Basic   $(0.01)   $(0.02)   $(0.02)   $(0.06)
            March 31, 2017   June 30, 2016
Cash and Cash Equivalents           $268,661   $368,018
Inventory           $412,339   $471,436
Net Working Capital           $64,980   $328,939
Total Assets           $1,356,109   $1,663,854
Accounts payable and accrued liabilities           $775,169   $760,730
Total liabilities           $1,686,000   $861,156

“We are pleased to report that despite our reduced spend levels, and the resulting decrease in current period sales, we have launched the new HITCASE PRO 7,” said Brooks Bergreen, Chairman and CEO of HITCASE. “We ran a successful KickStarter campaign for the HITCASE PRO 7 launch and have exceeded our funding target, which we believe is a good indication of the quality of our completely re–designed flagship offering. With our tighter budget, we are laser focused on producing the best cases on the planet, and reviewers are agreeing with us – such as the Cult of Mac who said 'it's the best waterproof case I've ever tested'. Our new HITCASE SHIELD and soon to be launched HITCASE PRO 7 have already had a great response from customers and media. We are proud of these new designs and believe we are a standout in the market with both products and our evolving ecosystem.”

Continued Mr. Bergreen, “Strategically, we believe that by designing our best possible product suite and conducting limited production and sales runs to capture important market feedback, we can position HITCASE to win the support of a large U.S. retailer for a formal re–launch program. With our iPhone 7 launching in June 2017, new product lineup transition is complete, and we are now looking forward to turning up our sales channels to position us for broader distribution in the coming fall and winter season. We expect to accomplish this through our partnership with Crowd & Company, an accomplished group of former Lifeproof executives, who have successfully positioned us for opportunities with proven big–box U.S. retailers. Importantly, we are executing on this against a backdrop of reduced development and marketing costs, and by focusing where we have the best return on our investment to minimize our capital requirements.”

Operational Summary for Q3 Fiscal 2017 include:

  • Generated sales of $147,459 in Q3 F2017, down 60% from $365,749 in Q3 Fiscal 2016. The decline reflects the Company's reduced spending on sales, marketing and distribution, and to intentionally keeping production runs limited until the full product line for iPhone 7 is completed.
  • Gross margin of $43,679 in Q3 F2017 was down from $136,299 generated in Q3 of last year due to decreased sales. The gross margin percent decreased to 30% compared to 37% last year.
  • During the quarter, the Company reduced operating expenditures (excluding non–cash items and cost of sales) to $447,829, a 38% reduction from Q3 F2016. The Company continues to look for additional opportunities to realize further reductions while maintaining its ability to continue its product development and to pursue the support of a large partner to re–launch the product–line;
  • Reported an Adjusted EBITDA loss of $426,830 for Q3 F2017, a 24% reduction from $562,747 in Q3 F2016;
  • Closed the quarter with working capital of $64,980 including cash and cash equivalents of $268,661 and inventory of $412,339 at March 31, 2017.
  • The Company completed private placements of secured convertible debentures and Units for gross proceeds of $362,000 in the quarter. Subsequent to March 31, 2017, the Company closed an additional private placement of secured convertible debentures for gross proceeds of $330,000.
  • Subsequent to quarter end, completed the new HITCASE PRO design for iPhone 7 and 7+, and launched the product via a successful “crowdfunding” campaign with shipments beginning in June 2017. The Company's “crowdfunding” campaign exceeded its $50,000 targeted funding.
  • Announced a partnership with Crowd & Company for sales and marketing initiatives. Crowd & Company executives have extensive experience in marketing and selling protective iPhone cases to large US retailers, having successfully launched a protective iPhone case line by the name of Lifeproof in 2011. With completion of the HITCASE PRO–7, Crowd & Company has been successful at generating interest from large U.S. based retailers for the full HITCASE line–up.

Non–IFRS Measures
Adjusted EBITDA is a non–IFRS measure and management defines this metric as the loss and comprehensive loss under IFRS, adjusted by adding back interest, taxes, amortization, and other non–cash expenses. Please review the reconciliation of Adjusted EBITDA to net income (loss) in the Company's MD&A for the corresponding period.

This press release should be read in conjunction with our unaudited interim Consolidated Financial Statements for the three months ended December 31, 2016 and the accompanying Management Discussion and Analysis, which can be found on SEDAR at www.sedar.com and on the Company's website http://www.hitcase.com/invest.

About HIT Technologies Inc.
HIT Technologies, Inc. (TSX VENTURE: HIT) develops and markets a portfolio of products that transform Apple iPhones into high–performing, weather– and shock–resistant video cameras. Both its, flagship product, HITCASE PRO and its newer SNAP allows users to easily capture action photo and video content hands–free, using a variety of HIT Technologies' patented Railslide™ mounts that attach to virtually any surface. Swappable lenses and accessories provide a variety of perspectives otherwise unattainable while participating in adventure sports. HIT Technologies is headquartered in Vancouver, British Columbia, Canada and trades on the TSX Venture Exchange. For more information about HITCASE, visit www.HITCASE.com. Search #hitcase on Instagram to see some of the amazing images created by HITCASE customers.

Forward Looking Statements
This news release contains certain “forward–looking information” within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. The information in this release about the Company's anticipated use of available funds, and the future plans and objectives of the Company are forward–looking information.

Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward–looking information and are intended to identify forward–looking information.

This forward–looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves 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 such forward–looking information. Such factors include, among others, global economic climate; dilution; the Company's limited operating history; future capital needs and uncertainty of additional financing; the competitive nature of the industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; theft and risk of physical harm to personnel; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and volatile securities markets impacting security pricing unrelated to operating performance. Although the Company has attempted to identify important factors that could cause actual results to differ materially, 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 information. The Company undertakes no obligation to revise or update any forward–looking information other than as required by law.

Cautionary Statement
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX–V nor its Regulation Services Provider (as that term is defined in the policies of the TSX–V) accepts responsibility for the adequacy of this release.

         
Hit Technologies Inc. (Formerly Friday Capital Inc.)  
Statements of Financial Position  
(Unaudited)  
(Expressed in Canadian dollars)  
             
    As at     As at  
    March 31,     June 30,  
    2017     2016  
             
Assets            
             
Current assets            
Cash   256,049     355,607  
Restricted cash   12,612     12,412  
Accounts receivable   32,669     40,355  
Other Receivables       23,217  
Government assistance and other receivables       65,887  
Inventory   412,339     471,436  
Prepaid expenses and deposits   205,966     190,768  
    919,636     1,159,682  
             
Property and equipment   201,244     290,114  
             
Intangible assets   235,140     214,058  
             
    1,356,019     1,663,854  
             
Liabilities            
             
Current liabilities            
Accounts payable and accrued liabilities   775,169     760,730  
Deferred revenue   72,096     62,786  
Current portion of lease liability   7,391     7,227  
             
    854,656     830,743  
             
Lease liability   24,848     30,413  
             
Convertible notes and advance   806,495      
             
Shareholders' Equity            
Share capital   10,039,667     9,865,699  
Contributed surplus   993,479     838,311  
Deficit   (11,363,125 )   (9,901,312 )
             
    (329,979 )   802,698  
             
    1,356,019     1,663,854  
             
   
Hit Technologies Inc. (Formerly Friday Capital Inc.)  
Statements of Operations and Comprehensive Loss  
For the quarter and nine months ended March 31, 2017 & 2016  
(Unaudited)  
(Expressed in Canadian dollars)  
                         
    Quarter ended March 31     Nine months ended  
    2017     2016     2017     2016  
                         
Revenue   147,459     365,749     599,510     1,457,231  
Cost of sales   103,780     229,450     394,462     1,004,218  
                         
    43,679     136,299     205,048     453,013  
    30 %   37 %   34 %   31 %
Expenses                        
Depreciation   37,170     49,347     138,848     158,394  
Share based compensation   31,693     49,804     111,304     222,003  
General and administrative   311,666     414,852     893,569     1,396,854  
Research and development   17,842     56,580     63,897     224,629  
Selling and marketing   118,319     245,299     413,736     1,182,117  
    516,689     815,882     1,621,354     3,183,997  
                         
                         
Loss before other income (expenses)   (473,010 )   (679,583 )   (1,416,307 )   (2,730,984 )
                         
Other income (expenses)                        
Finance costs   (25,753 )   (2,819 )   (40,251 )   (4,375 )
Foreign exchange loss   3,071     20,504     (5,256 )   10,553  
    (22,682 )   17,685     (45,507 )   6,178  
                         
                         
Loss and comprehensive loss for the period   (495,692 )   (661,898 )   (1,461,813 )   (2,724,806 )
                         
Basic and diluted loss per share   (0.01 )   (0.02 )   (0.02 )   (0.06 )
                         
Weighted average shares outstanding   70,435,615     42,769,584     68,791,598     42,769,584  
                         
   
Hit Technologies Inc. (Formerly Friday Capital Inc.)  
Statements of Changes in Shareholders' Equity/(Deficiency)  
(Unaudited)  
(Expressed in Canadian dollars)  
                             
    Share capital                    
    Number   Amount   Subscription receipts   Contributed Surplus   Deficit     Total Shareholders' equity/
(deficit)
 
    of shares   $       $   $     $  
                             
Balance – June 30, 2015   42,769,584   9,158,838       349,918   (6,643,364 )   2,865,392  
                             
  Loss for the period                   (2,724,806 )   (2,724,806 )
                             
  Share based compensation expense               222,003         222,003  
                             
Balance – March 31, 2016   42,769,584   9,158,838       571,921   (9,368,170 )   362,589  
                             
Balance – June 30, 2016   67,369,589   9,865,699       838,311   (9,901,312 )   802,698  
                             
  Loss for the period                   (1,461,813 )   (1,461,813 )
                             
  Share based compensation expense               111,304         111,304  
                             
  Equity component of convertible debenture               43,864         43,864  
                             
  Private placement   3,040,000   152,000                 152,000  
                             
  Shares issued on settlement of amounts owing   439,359   21,968                 21,968  
                             
Balance – March 31, 2017   70,848,948   10,039,667       993,479   (11,363,125 )   (329,979 )
                             
                     
Hit Technologies Inc. (Formerly Friday Capital Inc.)  
Statements of Cashflow  
Quarters ended March 31, 2017 & 2016  
(Unaudited)  
(Expressed in Canadian dollars)  
    Quarter ended March 31     Nine months ended March 31,  
    2017     2016     2017     2016  
                         
Cash flows from/(used in) operating activities                        
Loss for the period   (495,692 )   (661,898 )   (1,461,813 )   (2,724,806 )
Item not involving cash – depreciation   37,170     49,347     138,848     158,394  
Share based compensation   31,693     49,804     111,304     222,003  
Accounts receivable   (8,030 )   3,218     7,686     (148,541 )
Other reveivable           23,217      
Government assistance and other receivable       66,011     65,887     (74,044 )
Inventory   28,382     115,478     59,097     (269,507 )
Accounts payable and accrued liabilities   (13,380 )   160,552     36,407     174,944  
Deferred revenue   43,375     47,863     9,310     (21,788 )
Prepaid expenses and deposits   17,180     19,309     (15,198 )   36,539  
    (359,302 )   (150,316 )   (1,025,255 )   (2,646,806 )
                         
Cash flows from/(used in) investing activities                        
Restricted cash   64     156,843     (200 )   118,193  
Acquisition of property and equipment   (24,934 )   (9,319 )   (45,017 )   (82,123 )
Acquisition of intangible assets   (11,573 )   (20,712 )   (26,046 )   (70,265 )
    (36,443 )   126,812     (71,262 )   (34,195 )
                         
Cash flows from/(used in) financing activities                        
Lease liability   (1,813 )   (1,814 )   (5,401 )   (5,401 )
Share capital issuance   62,000           152,000        
Net proceeds from convertible notes & advances   507,879           850,360        
    568,066     (1,814 )   996,959     (5,401 )
                         
Increase/(decrease) in cash   172,321     (25,318 )   (99,558 )   (2,686,402 )
                         
Cash – Beginning of period   83,727     128,051     355,607     2,789,135  
                         
Cash – End of period   256,049     102,733     256,049     102,733  
                         

Marquee Energy Ltd. Announces First Quarter 2017 Financial Results and 2017 Corporate Budget and Guidance

CALGARY, AB—(Marketwired – May 30, 2017) –

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Marquee Energy Ltd. (“Marquee” or the “Company”) (TSX VENTURE: MQX) announces its first quarter operational and financial results for the three months ended March 31, 2017. The Company's financial statements and Management's Discussion and Analysis (“MD&A”) for the three months ended March 31, 2017 are available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and on Marquee's website at www.marquee–energy.com.

FIRST QUARTER 2017 FINANCIAL AND OPERATING HIGHLIGHTS

  • Marquee successfully drilled, completed, and equipped three light oil horizontal Banff wells at Michichi on a single pad location at an average cost of $1.79 million per well. These are the first wells Marquee has drilled since the third quarter of 2015. The wells came on production in early April with higher than expected production rates;
  • Production averaged 2,479 boe/d (46% liquids) in the first quarter of 2017, down 79 boe/d (3%) from the fourth quarter 2016. No new production was brought on line in the quarter with results reflecting the low– decline performance of production at Michichi;
  • Funds flows from operations were $1.3 million in the first quarter, an increase of $2.2 million from the previous quarter;
  • Revenue was $33.27/boe in the first quarter of 2017, down $0.78/boe from $34.05/boe realized in the previous quarter;
  • Reduced quarterly production and transportation costs by 32% to $3.9 million or $17.56 per boe from $5.7 million or $24.30 per boe in the fourth quarter of 2016, primarily due to a number of one time only costs that occurred in Q4 2016;
  • Operating netbacks prior to hedging averaged $13.06/boe in Q1 2017, a 60% increase from the previous quarter.
  • Subsequent to March 31, 2017, the Company entered into a $30 million term loan with Crown Capital Fund IV, LP, an investment fund managed by Crown Capital Partners Inc.
  • Subsequent to March 31, 2017, the Company signed a $12 million credit facility with a major Canadian bank, replacing the previous syndicated credit facility of $25 million;
  • The Company's Annual and Special Shareholders' meeting will be held on June 26, 2017. At the meeting, shareholders will be asked to approve a Consolidation to effect a consolidation of the Common Shares of

Marquee on the basis of one (1) post–consolidation Common Share for every thirty (30) pre–consolidation Common Shares then issued and outstanding.

FINANCIAL AND OPERATIONAL RESULTS

    Three months ended March 31, 
    2017   2016 
 Financial (000's except per share and per boe amounts)            
 Oil and natural gas sales (1)   $7,423     $7,749  
 Funds flow from operations (2)   $1,332     $1,392  
    Per share – basic and diluted   $–     $0.01  
    Per boe   $5.76     $3.45  
 Net income (loss)   $(3,663 )   $(7,918 )
    Per share – basic and diluted   $(0.01 )   $(0.04 )
 Capital expenditures   $6,611     $100  
              
              
 Net debt (2)   $22,688     $49,058  
 Total Assets   $174,239     $217,189  
 Weighted average basic and diluted shares outstanding   435,772,196     205,686,639  
              
              
 Operational            
 Net wells drilled   3      
 Daily sales volumes            
    Oil (bbls per day)   1,000     1,457  
    Heavy Oil (bbls per day)       407  
    NGL's (bbls per day)   132     157  
    Natural Gas (mcf per day)   8,082     14,451  
    Total (boe per day)   2,479     4,430  
    % Oil and NGL's   46%     46%  
 Average realized prices            
    Light Oil ($/bbl)   $52.69     $31.11  
    Heavy Oil ($/bbl)   $–     $17.60  
    NGL's ($/bbl)   $41.58     $24.08  
    Natural Gas ($/mcf)   $3.00     $2.00  
 Netback            
    Revenue ($/boe)   $33.27     $19.22  
    Royalties ($/boe)   $(2.65 )   $(1.34 )
    Operating and transportation costs ($/boe)   $(17.56 )   $(16.46 )
    Operating netback prior to hedging (2)   $13.06     $1.42  
    Realized hedging gain (loss) ($/boe)   $–     $5.89  
   Operating netback ($/boe) (2)   $13.06     $7.31  
(1)   Before Royalties
(2)   Defined under the Non–GAAP Measures section of the Company's MD&A for the three months ended March 31, 2017

2017 CAPITAL BUDGET AND GUIDANCE

Further to its earlier press release also dated May 30, 2017, announcing the entering into of a term loan with Crown Capital Fund IV, LP, an investment fund managed by Crown Capital Partners Inc., and a new credit facility with a major Canadian bank (the “Credit Facility“), the Board of Directors of Marquee has approved a capital budget of approximately $15 million for the second half of 2017. The budgeting is based on an oil price of US$50WTI/barrel and a natural gas price of $2.75/GJ AECO. The capital program is expected to increase cashflow, production and reserves while leaving the Company undrawn on its Credit Facility at year–end.

Marquee is planning to drill six light oil horizontal Banff wells in the second half of 2017, and expects a year end corporate exit rate of 3,000 boe/d – 3,300 boe/d (25–37% production growth exit to exit). The production growth in 2017 is expected to increase the Company's oil and liquids weighting and reduce corporate unit operating costs generating an expected improvement of field netbacks by more than 40%.

The second half 2017 drilling program is anticipated to commence mid–June to early July, and expects to incorporate mono–bore drilling with increased frack stages to improve productivity and reserves recoveries while maintaining similar well costs as recent drilling. The capital spending also includes legacy horizontal well optimization, operating capital, normal course abandonment and reclamations costs as well as seismic and land acquisition expenditures.

Marquee's latest well results were press released on May 23, 2017 and the wells continue to perform above expected rates. The wells demonstrate strong economics at current commodity prices and provide high rates of return and cash netbacks.

ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS

The Company's Annual and Special Meeting of Shareholders (the “Meeting”) is scheduled for 2:00 PM on Monday, June 26, 2017 in the Strand/Tivoli room at the Metropolitan Conference Centre in Calgary, Alberta. The record date for the meeting has been set at May 23, 2017.

At the Meeting, shareholders (“Shareholders”) of Marquee's common shares (“Common Shares”) will be asked to approve a special resolution (the “Consolidation Resolution”) authorizing the Company to amend its Articles to effect a consolidation (the “Consolidation”) of the Common Shares on the basis of one (1) post–consolidation Common Share for every thirty (30) pre–consolidation Common Shares then issued and outstanding, or such other number of pre–consolidation Common Shares as may be determined by the Board in its sole discretion, subject to the requirements of the TSX Venture Exchange. As of the date hereof, the Company has 435,772,196 Common Shares outstanding. Notwithstanding approval of the proposed Consolidation by the Shareholders, the Board may, in its sole discretion, revoke the Consolidation Resolution, and abandon the Consolidation without further approval or action by, or prior notice to, the Shareholders.

The Company believes that, if implemented, the Consolidation will help attract a new investor base and potentially increase liquidity. The Board believes that the Consolidation is in the best interest of the Company, and that the Consolidation will more closely align the issued and outstanding share capital of the Company with its financial valuation.

If approved and implemented, the Consolidation will occur simultaneously for all of the Company's issued and outstanding Common Shares and the consolidation ratio will be same for all such Common Shares. The Consolidation will affect all holders of Common Shares uniformly and will not affect any Shareholder's percentage ownership interest in the Company, except to the extent that the Consolidation would otherwise result in a Shareholder owning a fractional Common Share. No fractional post–consolidation Common Shares will be issued and no cash will be paid in lieu of fractional post–consolidation Common Shares. Any fractional Common Shares resulting from the Consolidation will be rounded to the nearest whole Common Share.

ABOUT MARQUEE

Marquee is a Calgary–based, junior energy company focused on light oil development and production in the Michichi area of eastern Alberta. Marquee's shares trade on the TSX Venture Exchange under the trading symbol “MQX”. Additional information about Marquee may be found on its website www.marquee–energy.com and in its continuous disclosure documents filed with Canadian securities regulators on SEDAR at www.sedar.com.

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

FORWARD–LOOKING STATEMENTS OR INFORMATION

Certain statements included or incorporated by reference in this news release may constitute forward–looking statements under applicable securities legislation. Such forward–looking statements or information typically contain statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “estimate”, “propose”, or similar words suggesting future outcomes or statements regarding an outlook. Forward–looking statements or information in this news release may include, but are not limited to: reserves estimates and the net present value of the future net reserves related thereto; the number and quality of future potential drilling and development opportunities; anticipated capital budgets and expenditures; average production for 2017 and beyond; 2017 exit production rates; the Company's development plan; the size and extent of the Michichi oil fairway; matters to be voted on at the Company's annual and special meeting of shareholders, a consolidation of the Company's shares, and the benefits to be derived therefrom; and the timing of disclosure of further 2017 guidance, capital expenditure plans and well performance.

Such forward–looking statements or information are based on a number of assumptions all or any of which may prove to be incorrect. In addition to any other assumptions identified in this document, assumptions have been made regarding, among other things: the ability of the Company to obtain equipment, services and supplies in a timely manner to carry out its activities; the ability of the Company to market crude oil, natural gas liquids and natural gas successfully to current and new customers; the ability to secure adequate product transportation; the timely receipt of required regulatory approvals; the ability of the Company to obtain financing on acceptable terms; interest rates; regulatory framework regarding taxes, royalties and environmental matters; future crude oil, natural gas liquids and natural gas prices; the ability to successfully integrate acquisitions into Marquee's business and management's expectations relating to the timing and results of development activities.

Forward–looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward–looking information. Material risk factors affecting the Company and its business are contained in Marquee's Annual Information Form for the year ended December 31, 2016, which is available under Marquee's issuer profile on SEDAR at www.sedar.com.

The forward–looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward–looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward –looking information contained in this press release is expressly qualified by this cautionary statement.

NON–GAAP FINANCIAL MEASURES

This press release contains the term “operating netbacks prior to hedging” and “operating netbacks” which do not have standardized meanings prescribed by IFRS and, therefore, may not be comparable with the calculation of similar measures presented by other companies. Marquee uses operating netbacks to analyze operating performance. Marquee believes this benchmark is a key measure of profitability and overall sustainability for the Company and this term is commonly used in the oil and natural gas industry. Operating netbacks are not intended to represent operating profits, net earnings or other measures of financial performance calculated in accordance with IFRS.

Operating netbacks prior to hedging are calculated by subtracting royalties, production, and operating and transportation expenses from revenues before other income/losses. Operating netbacks include realized hedging gain (loss).

This press release also contains the term “funds flow from operations” which should not be considered an alternative to, or more meaningful than “cash flow from operating activities”, as determined in accordance with IFRS, as an indicator of the Company's performance. “Funds flow from operations” does not have any standardized meaning prescribed by IFRS and therefore reference to funds flow from operations or funds flow from operations per share may not be comparable with the calculation of similar measures presented by other entities. Management uses funds flow from operations to analyze operating performance and leverage and considers funds flow from operations to be a key measure as it demonstrates the Company's ability to generate cash necessary to fund future capital investments and to repay debt. Funds flow from operations per share is calculated using the weighted average number of shares for the period.

In addition, the press release contains the term “net debt”, which does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Net debt is calculated as net debt, defined as current assets less current liabilities (excluding fair value of commodity contracts and flow–through share premiums). Management considers net debt as an important additional measure to monitor debt repayment requirements and track the financial viability of the Company.

Please see the Company's MD&A for the year ended December 31, 2016 and the Company's MD&A for the three months ended March 31, 2017 for a reconciliation of certain Non–GAAP financial measures used in this press release to their most directly comparable GAAP or IFRS measures.

ADDITIONAL ADVISORIES

Barrels of oil equivalent (boe) are presented on the basis of one boe for six Mcf of natural gas. Disclosure provided herein in respect of boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 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 crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.