Tesla Announces Appointment of Receiver and Resignation of Directors

Symbol: TXL

Stock Exchange: TSX

CALGARY, July 25, 2016 /CNW/ - Tesla Exploration Ltd. ("Tesla" or the "Company") announces that further to the notice of the demand for repayment of all outstanding indebtedness with the exception of the leasing facilities under its Canadian credit facility (the "Credit Facility") from its Canadian Lender (the "Lender"), the Company has consented to early enforcement by the Lender of its security for all amounts owing under the Credit Facility. The Lender has also received a court order for the appointment of Ernst & Young Inc. (the Receiver") as the Receiver over the property of the Company. The Receiver will be in charge of managing the day to day affairs of the Company during the period of its appointment and should be contacted with respect to any questions concerning the assets and liabilities of the Company.

Prior to the appointment of the Receiver, all of the directors of the Company have resigned.

Forward-looking Statements

Certain information set forth in this press release, including management's assessment of the Company's future plans and operations, contains forward-looking statements, which are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "intends", "continues", "estimates", "objective", "ongoing", "may", "will", "should", "might", "plans" and similar expressions. These statements are not guarantees of future results and undue reliance should not be placed on them. Such forward-looking statements are based on current expectations, estimates and projections that involve a number of known and unknown risks and uncertainties, which may cause actual results to differ materially from any projections of future results expressed or implied by such forward-looking statements.

SOURCE Tesla Exploration Ltd.

Requests for further information should be directed to: Mr. Richard Habiak, President and CEO, [phone]; Mr. Graham Reid, Vice President and CFO, [phone]