High North Resources Ltd. provided an operational update regarding project development and recent production. The company is in the initial stages of developing its lands for Montney oil and gas production. The company's production remains stable at approximately 260 barrels of oil per day ('bbls/d').

To date, six wells have been drilled and completed by the company with a 100% success rate. Currently, two wells are on production. The four shut-in wells are capable of commercial production.

The company's full production capabilities will be realized once gas production is tied-in and a water handling facility is constructed. The company's operations have recently been, and will continue to be, focused on both of these projects over the next few months. The Alberta Energy Regulator has granted approval to High North to flare the associated gas production from the wells until August 1, 2015.

Therefore, the company is currently pursuing the installation of a power generation facility whereby the produced associated gas will be utilized as fuel gas, and the excess will be marketed to the electrical grid. The company will then realize the revenue and cash flow for this gas production. In addition, the company's operating costs, specifically propane and diesel costs, will be significantly reduced with the gas coming on production.

In concert with the development of the gas production and power generation facility, the installation of a water handling and optimization facility is being explored. Once this facility is constructed, High North will be able to significantly reduce its operating costs by reducing both trucking and disposal expenses. High North anticipates that both the gas-to-power and water handling projects will be on-stream by mid-summer, 2015.

The gas production and power generation facility and the water handling and optimization facility are essential for High North to transition into its next phase of production. As noted, the company is producing approximately 260 bbls/d. An additional 300 barrels of oil equivalent per day (boe/d) is 'behind pipe' until the wells are put back onto production and gas sales are realized. The cash flow from the added production, combined with reduced operating costs, are forecasted to fund further drilling in the latter half of 2015.