May 03 2016

Emerald Bay Energy Inc. (TSX Venture: EBY) (the “Company”or“Emerald Bay”) today announced that the Company has drilled and cased the BeauMar 1 well to a depth of 2,822 in the Austin Chalk and Pecan Gap formations, at Nash Creek Texas.

Mr. Shelby Beattie, President and CEO commented, “Mud logging analysis was used in conjunction with the open-hole log suite to identify one (1) potential interval in the Austin Chalk formation and four (4) potential intervals in the Pecan Gap formation. Operations will focus on the four Pecan Gap intervals with completion operations expected to be completed by May 15th. This is an exciting development for our Company.”

At Wooden Horse, the Company has recently drilled and cased the Kuhn 3 well at a depth of 2,200 feet also in the Austin Chalk formation. Mud logging analysis, together with the open-hole log suite, suggests the potential for two (2) intervals in the Austin Chalk capable of producing commercial hydrocarbons. Flow test operations on interval one (1) will begin this week and will last approximately 30 days before proceeding to interval two (2).

Emerald Bay is moving forward with Alliance Petroleum Interests to drill a second set of four (4) wells in the Somerset Field in Bexar and Atascosa Counties, Texas. In the first set of four wells, the Company has competed MarPat 1 and 2 in the Anacacho formation to approximately 1,600 feet and installed the production facility with the wells currently pumping back oil and frac fluid. “We encountered excellent gas drive after fracking operations of MarPat 1 and 2 and the wells flowed for approximately three (3) weeks before conventional lifting equipment could be installed. The Marpat 3 and 4 wells are scheduled to be fracked the week of May 9th. The second set of 4 wells will be drilled on the Marpat B lease to the base of the Anacacho formation at approximately 1,800 feet. We are currently surveying, building roads, and preparing locations while waiting for drilling permits to be approved,” added Mr. Beattie.

About Emerald Bay

Emerald Bay Energy Inc. (EBY)is a diversified energy company with oil producing properties in southwest Texas as well as natural gas and electricity generation projects in Central Alberta, Canada. EBY is the operator of the Wooden Horse and Nash Creek Projects in Guadeloupe, Texas, where they own a 27.78% working interest in those projects. In addition, the Company has numerous non-operated working interests in oil and gas properties in Central Alberta. The common shares trade on the TSX Venture Exchange under the symbol "EBY". Please visit www.ebyinc.com for more detail.

For further information, please contact:
Emerald Bay President, Shelby D. Beattie, (403) 262-6000, info@ebyinc.com
D’Arcy Funfer, (403) 410-6221, darcy@chfir.com

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.