Re-negotiation of Convertible Security Funding

Embargoed for release at 7.00am

11 September 2017

Columbus Energy Resources Plc

("CERP" or "Columbus" or the "Company")

Successful re-negotiation of convertible security funding agreement

Columbus Energy, the oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America, is pleased to announce that it has successfully renegotiated certain terms of its US$8.9million Convertible Security Funding Agreement ("Funding Agreement") with Lind Partners, LLC ("Lind"), announced on 7 December 2016.

Leo Koot, Executive Chairman of Columbus Energy Resources commented,

"We are delighted by Lind's continued support for the Company, management team and strategy, by agreeing to amend the terms of the Funding Agreement. The financial and corporate initiatives we have implemented to date across the Company to reduce our cost base and increase production through existing cash resources means that Columbus is still on track to being cash flow positive in Q4 2017.

The amendments set out below will enable us to deliver further share value growth and to accelerate our work programme in Trinidad. We believe the amendment to the conversion price clearly highlights Lind's confidence in the business and suggests the previous price of 3p should be our share price's floor. With the additional funds from Lind, we are implementing a number of operational opportunities to increase further production and revenues from existing fields, including field optimisation, well stimulation and the water-injection pilot for which the application has been submitted. The preparations for the water injection pilot programme B are in progress and we have already commenced water injection to establish interference between some wells associated with that application."

Terms of the Funding Agreement

On 9 December 2016, US$1.825m was drawn down by the Company (the "First Tranche"), repayable in cash over 24 months from the Company's free cashflow. Repayments are up to date and as of 31 August 2017 the balance of the First Tranche is approximately US$1.344m, with all repayments having been made in cash to date. Under the Funding Agreement, Lind currently has the right to convert some or all of the outstanding balance to equity at a conversion price of 3p per share.

On 10 September 2017, the Company executed the following value accretive amendments to the Funding Agreement:

· Lind has agreed to increase the conversion price by 50% for the First Tranche to 4.5p per share from 3p per share upon completion of the deal.

· The Company has granted Lind 17,992,308 shares, to be escrowed by Lind for at least six months from the date of issue (expected to be 23 September 2017).

· Lind has agreed with the Company that it shall receive the repayment of its next First Tranche monthly instalment in September 2017 in shares, totalling 2,307,692 shares at a conversion price of 3p per share.

· Lind has also informed the Company that it intends on exercising its exclusive right to increase the Funding Agreement by US$750,000 (the "Second Tranche"), with the funds to be provided to Columbus in Q4 2017. The Second Tranche is to be repaid by the Company at a monthly rate of US$38,719 in cash or shares, with the Company exclusively determining the method of repayment on a monthly basis. 

· Upon providing the Second Tranche, Lind will also be entitled to 7,692,308 share options, exercisable at a price 50% greater per share than the average share price for the 20 days prior to the date of award for a period of up to 40 months. 

Columbus intends on deploying the new funds on accelerating a number of operational opportunities to increase further production and revenues from its existing fields, including field optimisation, well stimulation and the water-injection pilots.

All other terms and conditions of the Funding Agreement will continue in full force and effect and un-amended.

- ENDS -

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