Vancouver, BC – March 19, 2019

NEWS RELEASE

MINERAL HILL INDUSTRIES COMPLETES THE NI-51-101 REPORT ON ITS PROPOSED SECOND OKLAHOMA PROJECT

Vancouver, BC, Canada – March 19, 2019

Mineral Hill Industries Ltd. (“Mineral Hill” or “Company”), trading on the TSX Venture Exchange under the trading Symbol “MHI”, on the Deutsche Boerse, Frankfurt under the trading Symbol “N8Z1”, and on OTC Market (US) under the Symbol “MHIFF”, announced in its last News Release dated January 14, 2019,

its intent to acquire additional oil producing assets in Oklahoma (the “Okl-2 Project”) from a privately held Oil & Gas company (the “Target”).

Mineral Hill wishes to announce that subsequent to the above mentioned News Release, the Company commissioned a NI 51-101 report on its proposed Okl-2 project (“NI-Report”) with independent Qualified Reserves Evaluator (“QRE”).  The revised version of the NI-Report was completed on February 21, 2019 in accordance with the Canadian OIL & Gas Evaluation (“COGE”) Handbook and the effective date of December 31,2018. The NI-Report was filed with the TSX Venture Exchange (“TSX-V”) and evaluates the Target’s Proved Developed Producing (PDP), Proved Developed Non-producing (PDNP), Proved Undeveloped (PUD), and Probable Undeveloped (PrUD) reserves (the “NI-Report”).

The data in the NI-Report confirms a total of Proved and Probable present worth of US$ 46,922,420, when discounted by 10% per annum, and when discounted by 15% per annum a present worth of US$33,476,460. The report estimates total recoverable reserves of 2,145,900 Barrels of Light and Medium Oil.

The Reserves estimates contained in the NI-Report have been prepared using a maximum remaining Reserves life assigned to oil wells of 50 years. Decline curve analysis was used to estimate the remaining Reserves of pressure depletion reservoirs with enough historical production data to establish decline trends and the initial production rates are based on current producing rates for those wells now in production. If a decline trend has been established, this trend was used as the basis for estimating future production rates. For reserves not yet in production, test data and other related information were used to estimate anticipated initial production rates and sales were estimated to commence at a date deemed reasonable based on experience and judgment of the QRE.  

The NI-Report used the following price deck to calculate the present worth of future net revenue, based on forecast pricing and before income tax:

FORECAST PRICES

  Light and Medium Oil Prices Conventional Nat’l Gas Price
Dates US$/Bbl US$/MMBtu
2018 70.00 3.00
2019 56.50 3.00
2020 63.80 3.15
2021 67.60 3.45
2022 71.60 3.60
2023 73.10 3.60
2024 74.50 3.70
2025 76.00 3.75
2026 77.50 3.85
2027 79.10 3.90
Thereafter 2%/year increase 2%/year increase

The historical hydrocarbon liquid prices were indexed to the monthly average of the daily closing prices received at the Cushing, Oklahoma delivery point. The average difference between the wellhead oil price and the NYMEX price represents adjustments for crude quality, marketing fees, BS&W, transportation costs and purchaser bonuses. These adjustments were applied to the NYMEX prices listed in table above.

Historical natural gas prices were indexed to the monthly Henry Hub prices posted in the Inside FERC publication. Historical prices were indexed for each month of available accounting data. The average difference between the wellhead price and the NYMEX price represents adjustments for BTU content, marketing, and transportation costs. These adjustments were applied to the NYMEX prices listed in table above.

The NI-Report states that for the operating and capital cost, the lease operating costs were used which represent in most cases the average of recent historical monthly field level operating costs. In cases where historical lease operating costs were not available or deemed to be unreliable for the property, operating costs were estimated based on knowledge of analogous wells producing under similar conditions.

As referred to in the Company’s News Release dated January 14, 2019, the Target is currently a debtor in possession under Chapter 11 of the United States Bankruptcy Code. In consultation with its secured lender, on February 18, 2019, the Target filed its Plan of Reorganization and Disclosure Statement to facilitate the transaction described in this New Release and the January 14, 2019 News Release.

Under the conditions of the LOI the Company is required to first complete the private placement PP#1 referred to in its News Release of January 14, 2019, by selling a minimum amount of 3.0 million securities units at Cdn$0.20 per securities unit (“Unit”) for the minimum proceeds of Cdn$600,000 before obtaining commitment for the major round of funding (“PP#2”) in the amount between US$6.5 million to US$8.5 million.

The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. persons without registration or applicable exemption from the registration requirement of such Act. This release does not constitute an offer for sale of such securities in the United States of America.

Cautionary Note Regarding Forward-Looking Statements

Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Mineral Hill’s periodic filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should, aware” and similar expressions, are forward-looking statements.

Forward-looking statements may include, without limitation, statements including statements related to Mineral Hill’s transactions and business related to its proposed Oil and Gas projects.

Although Mineral Hill has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited operating history or when very limited due diligence was performed or may be engaged in activities currently considered illegal or not in compliance under US Federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry; and regulatory or political change.

Results quoted from the NI-51-101 Report were presented information and should not be construed as estimates of fair market value. There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Mineral Hill disclaims any intention or obligation to update or revise such information, except as required by applicable law, and Mineral Hill does not assume any liability for disclosure relating to any other company mentioned herein.

For further information, please contact:

Dieter Peter

President & CEO Phone: (604) 617-6794

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.