Lightstream Resources Ltd. Announces Closing of Asset Sale to Ridgeback Resources

CALGARY, Dec 29, 2016 - Lightstream Resources Ltd. (the "Company" or "Lightstream") announces that further to our press release dated December 8, 2016, the previously announced sale of substantially all of the assets and business of the Company (the "Sale Transaction") to Ridgeback Resources Inc. ("Ridgeback") closed today. The Sale Transaction represents the outcome of the sale process carried out by the Company as part of its restructuring proceedings under the Company Creditors' Arrangement Act commenced in September 2016. As a result, Ridgeback, a new private company owned by former holders of the Company's 9.875% second lien secured notes due 2019 ("Secured Notes"), now owns and operates the former assets and business of Lightstream.

Ridgeback has secured a new $400 million borrowing base bank facility with a syndicate of lenders comprising the five large Canadian banks, which provides in excess of $100 million of available liquidity. In addition, Ridgeback has raised additional capital through US$39.3 million of Second Lien Notes maturing in 2020 that have been purchased by certain of Ridgeback's shareholders and their affiliates. Given current economic conditions, Ridgeback is planning to commence a new operated drilling program in January 2017.

Effective January 1, 2017, all notices, correspondence, invoices or payments in respect of Lightstream, LTS Resources Partnership or Bakken Resources Partnership should now be issued in the name of Ridgeback Resources Inc. at the same mailing address. Notices and other documentation are being issued to partners and service providers in respect of agreements affected by the sale transaction.

All of the directors of Lightstream have resigned effective today. Mr. John D. Wright (formerly the President and Chief Executive Officer of Lightstream) has been appointed to the new Board of Directors of Ridgeback. The management team of Lightstream has resigned from Lightstream and been hired by Ridgeback, together with all other Lightstream personnel who also moved over to Ridgeback today. Lightstream will no longer have any operating assets or active business. The court-appointed Monitor will assist with the wind-down of the Company's remaining affairs.

Lightstream Resources Ltd. is formerly an oil and gas exploration and production company focused on light oil in the Bakken and Cardium resource plays.



Contact

Lightstream Resources Ltd.
John D. Wright, President and Chief Executive Officer
Peter D. Scott, Senior Vice President and Chief Financial Officer
Annie C. Belecki, General Counsel
403.268.7800
403.218.6075
ir@lightstreamres.com
www.lightstreamresources.com