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Dundee Energy Limited Announces Forbearance Agreement in Respect of Dundee Energy Limited Partnership Credit Facilities

February 01, 2017

TORONTO, ONTARIO--(Marketwired - Feb. 1, 2017) - Dundee Energy Limited (the "Corporation" or " Dundee Energy") (TSX:DEN) today announced that as a result of ongoing discussions between Dundee Energy Limited Partnership ("DELP") and its lenders (the "Lenders") under DELP's credit facilities (the "Credit Facilities"), DELP has entered into a forbearance agreement with such Lenders and with National Bank of Canada, as agent (the "Forbearance Agreement").

Under the terms of the Forbearance Agreement, the Lenders have agreed to forbear from exercising their enforcement rights and remedies in respect of the Credit Facilities until May 15, 2017 (the "Outside Date"), subject to customary conditions and provided that DELP and the guarantor parties thereunder (the "Guarantors") shall use commercially reasonably efforts to close one or more restructuring transactions pursuant to the restructuring plan set forth in the Forbearance Agreement (the "Restructuring Plan") as soon as possible and in any event by no later than the Outside Date. DELP intends, and is obligated under the Forbearance Agreement, to continue to operate its business in the ordinary course while pursuing the Restructuring Plan.

The Forbearance Agreement also provides an operating facility of $58 million and that the maturity date for the Credit Facilities shall be May 15, 2017, or such earlier date on which a termination event or a demand for repayment occurs, and that any settlement or compensation on account of DELP's interest in the Castor Project, and any proceeds of disposition from Windiga Energy Inc., shall be used by DELP to repay outstanding principal under the Credit Facilities. The Forbearance Agreement also requires DELP to take certain actions with respect to the previously announced strategic review (or sale and investment solicitation process (the "SISP")), as described in more detail in the Forbearance Agreement that will be filed under the Corporation's profile on SEDAR at www.sedar.com.

ABOUT DUNDEE ENERGY

Dundee Energy Limited is a Canadian-based oil and natural gas company with a mandate to create long-term value for its shareholders through the exploration, development, production and marketing of oil and natural gas, and through other high impact energy projects. Dundee Energy holds interests, both directly and indirectly, in the largest accumulation of producing oil and gas assets in Ontario and, through a preferred share investment, in certain exploration and evaluation programs for oil and natural gas offshore Tunisia. The Corporation's common shares trade on the Toronto Stock Exchange under the symbol "DEN".

DISCLAIMER

This press release contains forward-looking statements in respect of the Restructuring Plan and the matters relating thereto including the anticipated timing of certain events, including the maturity of the Credit Facilities and the ability of DELP to continue to operate its business in the ordinary course while pursuing the Restructuring Plan. Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and may include words such as "expects", "anticipates", "intends", or similar expressions. Readers are cautioned that such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of Dundee Energy and/or DELP could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Corporation will derive from them. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This press release provides summary information only in respect of the Forbearance Agreement. Readers are urged to consult the full text of the Forbearance Agreement for further information, including with respect to the SISP, a copy of which will be filed under the Corporation's profile on SEDAR at www.sedar.com.

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