Tesla Completes Renewal of Credit Facility

Symbol: TXL

Stock Exchange: TSX

CALGARY, Sept. 9, 2015 /CNW/ - Tesla Exploration Ltd. ("Tesla" or the "Company") is pleased to announce today that it has completed the annual extension of its credit facility agreement with its lender (the "New Facility") subject to final documentation of the agreement. The extension is effective until June 30, 2016, and provides the Company with the financial flexibility required in its operations during the next ten months. The New Facility includes the following terms:

• North American operating facility: $10.0 million.
• North American non-revolving facility: $24.0 million.
• North American leasing facility: $2.5 million + USD$10 million.
• During the extension period, no further advances are permitted under the non-revolving facility or the leasing facilities without the approval of the lender.
• Interest rates on the operating and non-revolving facilities range from the lender's prime rate plus 0.50% to prime plus 3.50% based on the Company's ratio of funded debt to trailing twelve month EBITDA. Interest rates on the Company's leases remain the same.
• North American borrowing base to be calculated as the lesser of $34 million and the sum of:
  • 75% of accepted receivables.
  • 85% of investment grade receivables.
  • 100% of cash held with the lender.
• Matco Investments Ltd., the Company's largest shareholder, has agreed to provide a guarantee in the amount of $2.5 million, in favour of the Company's lender, which becomes operative in certain circumstances.

In addition to the above debt facilities, the Company has a UK operating facility in the amount of £4.0 million.

Tesla believes that these terms are satisfactory for the Company's business in 2016.

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 and six months ended June 30, 2015.

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]