CALGARY, ALBERTA–(Marketwired – May 16, 2016) – GRANITE OIL CORP. (“Granite“) (TSX:GXO)(OTCQX:GXOCF) announces that the annual borrowing base redetermination under its demand credit agreement has been completed and the borrowing base has been set at $60 million, consisting of a $45 million revolving demand credit facility and a $15 million revolving demand operating facility. The new borrowing base is a reduction from the previous amount of $80 million established in November 2015. Currently there is approximately $40 million drawn under the aggregate facility.

Granite’s liquidity remains strong after giving effect to the redetermination. After the execution of Granite’s 2016 capital program and the continued payment of its $0.035 per share monthly dividend, approximately $38 million of net debt is forecast at the end of 2016 based on Granite’s current expectations of 2016 cash flows. Granite’s capital program for the remainder of 2016 will be funded from internally-generated cash flow. Granite also maintains the balance sheet flexibility to take advantage of improved commodity prices through an expansion of its drilling program.

Forward-Looking Statements. Certain statements contained in this news release may constitute forward-looking statements or information (collectively, “forward-looking statements” or “statements”). These statements relate to future events or Granite’s future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. In particular, this news release contains forward-looking statements, pertaining to the following: Granite’s liquidity, the execution of its 2016 capital program and the payment of dividends.

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