EMERALD BAY PROVIDES UPDATE ON KUHN WELLS

Jan 30 2018

Emerald Bay Energy Inc. (TSX Venture: EBY) (the “Company” or “Emerald Bay”) announced today that the Company has completed the initial phase of production testing on the Kuhn 4 well at the Company’s Wooden Horse project in Southwest Texas. This phase involved perforating only a one foot interval in the Buda formation in order to test the inflow of oil and the potential inflow of formation water. The well has been producing a continuous oil cut for twenty one days and the Company’s geophysical team has recommended to management that an additional six feet of the formation now be perforated to bring the well fully on production in the coming weeks. Initial production rates for Kuhn 4 will be released as they become available.

The Company’s geophysical team has also recommended to management that the re-entry of Kuhn 3, announced in the Company’s press release of January 16, 2018, now be carried out in two phases whereby the Company will perforate and test the Upper Austin Chalk formation in the well prior to perforating and testing the Pecan Gap formation.

The Company will use one of the service rigs owned by its subsidiary PRI to carry out both operations.

ABOUT EMERALD BAY

Emerald Bay Energy Inc. (EBY) is an energy company with oil producing properties in southwest Texas as well as non operated oil, natural gas, and electricity generation interests in Central Alberta, Canada. EBY is the operator of the Wooden Horse and Nash Creek Projects in Guadeloupe, Texas, where the Company currently now owns a 50.00% working interest in those projects. The Company also owns 75% of Production Resources Inc., a South Texas oil company.

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For further information, please contact: Emerald Bay President, Shelby D. Beattie, (403) 262-6000, info@ebyinc.com, www.ebyinc.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.