Saturn Oil & Gas Announces USD $20 Million Senior Secured Note Facility with Prudential Capital Group

SASKATOON, SASKATCHEWAN – September 14, 2018 – Saturn Oil & Gas Inc. (“Saturn” or the “Company”) (TSX.V: SOIL) (FSE: SMK) is pleased to announce that it has entered into a USD $20 million senior secured revolving note facility (the “Notes”) with Prudential Capital Energy Partners, the middle-market energy mezzanine fund business sponsored by Prudential Capital Group. Under the terms of the Notes, Saturn has elected and qualified for an initial issuance of Notes equal to approximately USD $4.6 million. The remaining balance of Notes issuable under the facility is subject to Saturn’s satisfaction of applicable terms and conditions thereunder.

The Notes offer a combined average coupon rate of approximately 15% per year, payable monthly in arrears, and will mature on September 14, 2022. Saturn may, at its option, elect to satisfy up to 2% of the coupon interest of the Notes by way of issuance PIK Notes, which notes shall be substantially similar to the Notes in all material respects.

The Company has also agreed to issue Prudential Capital warrants (the “Warrants”) to purchase 30,505,122 common shares of the Company. The warrants are exercisable at a price per common share of $0.235, which is equivalent to the closing price of the Company’s common shares on the TSX Venture Exchange on September 13, 2018.

Saturn intends to use the majority of the net proceeds from the issuance of the Notes to rapidly expand their development of their Viking light oil and Success heavy oil assets in west-central Saskatchewan. In addition, a portion of the net proceeds of the initial Note issuance will be used to retire certain of the Company’s existing and higher interest debt.

Prudential Capital Group is the $81.4 billion private capital arm of PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc. (NYSE: PRU) (“Prudential”).

John Jeffrey, CEO of Saturn, commented “We would like to thank Prudential, our new lending partner, for their commitment and support. This financing provides us the instrument to aggressively develop our light and heavy oil assets while continuing to strengthen our asset base.”

To know more about Saturn Oil & Gas Inc. and their operations, please visit our website www.saturnoil.com.

About Saturn Oil & Gas Inc.
Saturn Oil & Gas Inc. (TSX.V: SOIL) (FSE: SMK) is a public energy Company focused on the acquisition and development of undervalued, low risk assets. Saturn is driven to build a strong portfolio of cash flowing assets with strategic land positions. De-risked assets and calculated execution will allow Saturn to achieve growth in reserves & production through retained earnings. Saturn’s portfolio will become its key to growth and provide long-term stability to shareholders.

To learn more, please contact the Company at 1 (306) 955-9946 or visit: www.saturnoil.com

About Prudential Capital Group
Prudential Capital Group has been a leading provider of private placements, mezzanine debt and equity to companies for more than 75 years, managing a portfolio of more than $81 billion as of June 30, 2018. Prudential Capital offers senior debt, mezzanine financing, leveraged leases, project financing, credit tenant leases as well as asset financing to companies worldwide. The global regional office network has locations in Atlanta; Chicago; Dallas; Frankfurt, Germany; London; Los Angeles; Milan; Minneapolis; New York; Newark, New Jersey; Paris; San Francisco and Sydney.* For more information, please visit prudentialcapitalgroup.com.

*Operates through PGIM (Australia) Pty Ltd.

On Behalf of the Board of Directors
SATURN OIL & GAS INC.

John Jeffrey, MBA – CEO & Chairman

Neither 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. Certain statements contained herein constitute forward-looking statements. Such forward-looking statements are subject to both known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Company to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Except as required by law, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.

Not for distribution to United States newswire services or for dissemination in the United States.

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