Shamaran Announces Issuance of Summons to Its Bondholders

VANCOUVER, Jan. 12, 2021 - ShaMaran Petroleum Corp. ("ShaMaran" or the "Company") (TSXV: SNM) (Nasdaq First North Growth Market: SNM) is pleased to announce the issuance today of a Summons for Written Resolution from Nordic Trust AS as Bond Trustee to all Bondholders of the Company's 12% senior unsecured bonds due 2023 (ISIN: NO 001082645.6) (the "Bonds") setting out the details of the Proposal (set forth below) with a voting period ending on January 26, 2021. View PDF version.

DISCUSSIONS WITH BONDHOLDERS

The Company has been in discussions with the informal Ad Hoc Committee representing approximately more than 50% of the Bondholders (the "AHC") to amend the cash sweep mechanism agreed in the July 2020 amended and restated bond terms to better utilize its "free cash" to buy back its Bonds in the market and today is pleased to report that an agreement has been reached for the Proposal (set forth below) between the Company and the AHC. Implementation of the Proposal, which is subject to approval by the holders of 66 2/3% of the Bonds, will enable the Company to further reduce its debt obligations on commercially attractive terms as and when they exist in the market.

Dr. Adel Chaouch, President and Chief Executive Officer of ShaMaran commented, "We are pleased that 2021 has begun with another positive result for ShaMaran with this constructive engagement with the AHC on behalf of the Bondholders resulting in the Proposal that provides ShaMaran future flexibility to strengthen the financial position of the Company."

Key terms of the Proposal to the Bondholders that was agreed between the Company and the AHC are that "free cash" in excess of USD 15 million can be used by the Company to buy back its Bonds in the market to satisfy the cash sweep redemption requirement that was agreed in last Summer's amendment and restatement of the Bond Terms. All Bonds so re-purchased will be retired by the Company. Should the Company not be able to buy sufficient Bonds in the market at commercially attractive rates then any remaining amount of "free cash" shall be used to redeem that principal amount of Bonds at par on a pro rata basis.

OTHER

This information is information that ShaMaran Petroleum Corp. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out below, at 5:30 p.m. Eastern Time on January 12, 2021. Pareto Securities AB is the Company's Certified Advisor on Nasdaq First North Growth Market, +46 84 02 5000, certifiedadviser.se@paretosec.com.

Neither the 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.

ABOUT SHAMARAN

ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration company which holds a 27.6% working interest in the Atrush Block through its wholly-owned subsidiary, General Exploration Partners, Inc.

ShaMaran is a Canadian oil and gas company listed on the TSX Venture Exchange and the Nasdaq First North Growth Market (Stockholm) under the symbol "SNM".

SOURCE ShaMaran Petroleum Corp.