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August 27, 2016

Trident Announces Approvals of Recapitalization

Trident’s previously announced recapitalization and financing transaction (the “Recapitalization”) described in its management information circular dated as of July 20, 2016 (the “Circular”) has now received approval from Trident’s debtholders, shareholder and from the Alberta Court of Queen’s Bench (the “Court”).

Excluding the $5,700,000 of senior unsecured notes held by Trident for its own account, holders of the Company’s senior unsecured notes representing $146,225,000 of the aggregate principal amount of the senior unsecured notes voted 98.6% in favour of the Recapitalization. In addition, the Recapitalization was supported by the sole holder of the Company’s $22,000,000 debenture. Approval from Trident Resources Corp. (“TRC”), Trident’s parent company, as the sole shareholder of Trident together with 99.9% of TRC’s shareholders was also received.

Pursuant to the provisions of the Canada Business Corporations Act, the plan of arrangement effecting the Recapitalization also required the approval of the Court, which was received yesterday.

The Recapitalization provides for the exchange of the Company’s $169.3 million of senior unsecured notes and its $22.0 million debenture for equity in the Company, elimination of the Company’s accrued interest obligations for the senior unsecured notes and debenture, and a reduction of drawings under the Company’s amended revolving credit facility (in aggregate, a liability reduction of over $215 million). Following closing, which is expected to occur on September 6, 2016, the Recapitalization is anticipated to reduce Trident’s cash interest payments by $16 million per annum.

Forward-Looking Information

Certain information regarding the Company contained herein constitutes forward-looking information and forward-looking statements (collectively “forward-looking statements”) under the meaning of applicable securities laws. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact, including statements regarding the anticipated benefits of the Recapitalization, including the reduction in debt and interest expense, the financial position of the Company after giving effect to the Recapitalization, and other risks and uncertainties described from time to time in the Company’s reports and other disclosures to investors. The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning the timing of closing for the Recapitalization. Although the Company believes that the assumptions underlying, and the expectations reflected in, such forward-looking statements are reasonable, it can give no assurance that such assumptions and expectations will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties and the difference may be material. There are many factors that could cause forward-looking statements not to be correct, including, but not limited to, risks associated with market conditions, the ability of Trident to satisfy the remaining conditions to complete the Recapitalization and the ability of the Company to continue as a going concern if the Recapitalization is not implemented, the risks associated with the oil and gas industry in general including operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects, capital expenditures, health and safety considerations, reserves and other estimates and projections of production, revenue and costs. The Company is subject to several influencing factors that increase the variability of potential outcomes and may impact forward-looking statements including uncertainty as to the availability of labour and services, commodity prices and exchange rate fluctuations, weather conditions, general business, economic, competitive, political and social uncertainties, capital market conditions and changes to laws and regulations.

The forward-looking statements contained herein are made as of the date of this release solely for the purpose of disclosing the above information regarding the Recapitalization and prospective activities. Trident may, as considered necessary in the circumstances, update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, however, the Company undertakes no obligation to update or revise any forward-looking statement except as required by law. Trident cautions readers that the forward-looking statements may not be appropriate for purposes other than their intended purposes and that undue reliance should not be placed on any forward-looking statement. Trident’s forward-looking statements are expressly qualified in their entirety by this cautionary statement.


Trident Exploration Corp.
Alan Withey
President & CEO

Trident Exploration Corp.
Jason Baird
Vice President, Finance

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