Kinetiko Energy Ltd. provided the following update on its onshore gas exploration and production development activities. The non-binding Letter of Intent (LOI) entered into with Grüner Energy Proprietary Limited (Gruner Energy) is considered material by the Board as it demonstrates the nature of commercial relationships that the Company is negotiating, which is integral to the Company's business model of establishing interest in local JV partners to co-develop and co-fund gas fields in Africa. These relationships have the potential of accelerating the exploration vision with funding support. In addition, Gruner has the capacity to be an off taker for gas produced and strengthens the market opportunities for the Company's significant contingent gas resource. Finally, the independent certification of gas reserves and the ability of KKO to increase its gas reserves will
depend on the ability of the Company to establish that there is a credible market for gas produced in what is projected to be a number of producing gas fields.