First Mountain Exploration Inc. Announces Filing of First Quarter Financial Results

Calgary - First Mountain Exploration Inc. ("First Mountain" or the "Company") (TSX Venture: FMX) announces its first quarter financial results for the period ended March 31, 2016. The March 31, 2016, unaudited financial statements and management’s discussion & analysis (“MD&A”) have been filed on SEDAR and can be viewed at www.sedar.com.


HIGHLIGHTS

On May 17, 2016, First Mountain Exploration Inc. (“First Mountain”) (TSX Venture: FMX), Point Loma Energy Ltd. (“Point Loma”) and Madalena Energy Inc. (TSXV: MVN and OTCQX: MDLNF) (“Madalena”) announced that, further to their joint news release dated February 9, 2016, First Mountain, Point Loma and Madalena have entered into definitive arm’s length agreements dated May 16, 2016 pursuant to which:

i. Point Loma will acquire Madalena’s non-core Canadian petroleum and natural gas assets focused in the Paddle River area of Alberta (the “Madalena Acquisition”);

ii. First Mountain will make an offer to acquire all of the issued and outstanding common shares (“Point Loma Shares”) in the capital of Point Loma in exchange for the issuance of common shares (“First Mountain Shares”) in the capital of First Mountain (the “Point Loma Acquisition”); and,

iii. First Mountain will complete a 10:1 share consolidation, change its name to “Point Loma Resources Ltd.” and its management and board will be reconstituted (the “Point Loma Reorganization”, and together with the Madalena Acquisition and the Point Loma Acquisition, the “Transaction”).


Since the initial announcement, Point Loma and First Mountain have collectively completed or entered into definitive agreements (with all such funds being held in escrow) relating to financings for aggregate gross proceeds of approximately $2.0 million (the “Financings”).

Upon completion of the proposed Transaction, the resulting entity, Point Loma Resources Ltd. (formerly First Mountain), will be a recapitalized, junior oil and natural gas exploration and production company listed on the TSX Venture Exchange (“TSXV”) with a consolidated and focused exploration play in the Paddle River area of Alberta.


FINANCIAL OVERVIEW

Certain selected financial and operational information for the year and quarter ended March 31, 2016 is set out below and should be read in conjunction with the Corporation’s audited annual financial statements and related MD&A. The following table provides a summary of key financial results for the three months ended March 31, 2016 and 2015:

                                    Three months ended March 31,
                                              2016         2015
Financial                                        $            $
 Oil and gas sales                          31,821       15,592
 Funds used in operations                  107,701       67,912
   Net loss and comprehensive loss         124,503       92,345
   Capital expenditures                          -       76,104
   Working capital                         278,120      546,695
Operating
 Average daily production
   Oil (bbl/d)                                   7            3
   Natural gas liquids (bbl/d)                   -            1
   Natural gas (mcf/d)                          33           10
   Total (boe/d)                                12            5
 Netback ($/boe)
   Oil and gas sales                         28.90        34.04
   Royalties                                  0.79         3.20
   Operating expenses                        33.61        28.50
   Transportation expenses                   (0.82)        9.02
     Operating netback ($/boe)               (4.67)       (6.68)

For further information, please contact:

William Slipp, President and Director
First Mountain Exploration Inc.
Telephone: (403) 453-2266 ext.227



Neither the TSX Venture nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.

Not for distribution to U.S. news wire services or dissemination in the United States.


A Note regarding Forward Looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information.

Although First Mountain believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because First Mountain can give no assurance that they will prove to be correct.

Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to reserves, resources, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to tax laws, royalties and environmental regulations, actual production from the acquired assets may be greater or less than estimates; failure to obtain the necessary regulatory approval, stock exchange and other regulatory approvals on the timelines planned. Management has included the above summary of assumptions and risks related to forward looking information provided in this press release in order to provide security holders with a more complete perspective on First Mountain's future operations and such information may not be appropriate for other purposes.

The forward-looking statements and information contained in this press release are made as of the date hereof and First Mountain undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.