Tesla Announces Deferral of Changes to UK Credit Facility

Symbol: TXL
Stock Exchange: TSX

CALGARY, May 31, 2016 /CNW/ - Tesla Exploration Ltd. ("Tesla" or the "Company") wishes to announce that further to Tesla's press release of May 16, 2016, and its unaudited financial statements for the three months ended March 31, 2016, whereby it announced that the directors of the wholly owned UK subsidiary of the Company received a formal notice from its UK lender indicating that the UK lender would reduce the overdraft facility from £1.8 million to £100 ($186) on May 31, 2016, the Company has received a formal notice that its UK lender will defer this reduction to June 30, 2016, the date the overdraft facility otherwise expires.

The Company continues to work with both its UK and Canadian lenders to achieve a renewal of its credit facilities such that the Company will be able to continue to fund its operations as a going concern. The Company can make no assurances with respect to its ability to complete these renewals. A failure to complete these renewals would have a material adverse effect on the Company.

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 performance 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 the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These include, but are not limited to, the risks outlined in the "Business Risks" section of the Company's MD&A for the three months ended March 31, 2016.

The information contained in this press release should not be considered all-inclusive as it excludes changes that may occur in general economic, political and environmental conditions. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Investors are cautioned against attributing undue certainty to forward-looking statements. The forward-looking information and statements contained in this press release speak only as of the date hereof and, subject to its obligations under applicable law, the Company does not intend, and does not assume any obligation, to update these forward-looking statements if conditions or opinions should change.

About Tesla

Tesla provides seismic land data acquisition in a multitude of environments in Canada through Tesla Exploration Partnership, in the U.S.A. through Tesla Exploration Inc., in South and Central America through Tesla Exploration Trinidad Ltd., Tesla Exploration Colombia S.A.S. and Tesla Do Brasil Geotecnia Ltda., which was incorporated in 2014 to explore offshore opportunities off the coast of Brazil. Tesla serves other markets in Europe and Africa through Tesla Exploration International Limited. Tesla has an international data processing office in the United Kingdom. Tesla Offshore LLC operates geophysical hazard surveys and provides positioning services for construction and diving operations in the Gulf of Mexico and internationally using its own vessel and other chartered vessels. Tesla trades on the TSX under the symbol "TXL".

SOURCE Tesla Exploration Ltd.

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