Knowlton Capital Inc. clarification

MONTREAL, June 2, 2016 /CNW Telbec/ - Knowlton Capital Inc. ("Knowlton") (TSXV: KWC‑H.V) issued a press release earlier today providing an update on an investment made by Leni Gas Cuba Limited ("LGC") in MEO Australia Ltd., a company listed on the Australian Securities Exchange (ASX) and which is one of LGC's portfolio companies.  As previously announced, Knowlton has entered into an arrangement agreement with LGC for a reverse take-over of Knowlton by LGC.  A copy of a press release issued today by LGC was annexed to Knowlton's press release.  A press release issued today by MEO Australia was in turn annexed to LGC's press release.

At the request of the Investment Industry Regulatory Organization of Canada (IIROC), Knowlton wishes to clarify the following.  The press release issued today by MEO Australia refers to "prospective resources – recoverable" in connection with that company's Beehive oil prospect located off Australia.  Knowlton assumes that such reference was made in accordance with applicable Australia regulations but is not able to so confirm.  Further, Knowlton is not able to confirm whether applicable Australian regulations are equivalent to those in the Canadian Oil and Gas Evaluation (COGE) Handbook and cannot confirm whether the disclosure in the MEO Australia press release complies with the COGE Handbook and applicable Canadian regulations.  Investors are cautioned to take all of the foregoing into consideration when reading the press releases issued by LGC and by MEO Australia, particularly any references to "prospective resources".

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

SOURCE Knowlton Capital

Rafi Hazan, Chief Financial Officer, Tel: [phone]