PETROSHALE : ANNOUNCES AMENDMENTS TO PREFERRED SHARE TERMS

PetroShale Inc. ('PetroShale' or the 'Company') (TSXV: PSH, OTCQX: PSHIF) is pleased to announce that the terms of the outstanding preferred shares issued by its US subsidiary, PetroShale (US), Inc. ('PetroShale US'), have been amended to provide PetroShale additional flexibility in managing and preserving its liquidity and cash flows.

PetroShale and the holder of the preferred shares have agreed to remove the limitation on the number of payment in kind elections in any twelve month period. PetroShale US is entitled to pay its quarterly dividend in kind in respect of a maximum of six fiscal quarters over the term ending in January 2023. To date, PetroShale has elected to pay two quarterly dividends in kind. Going forward, PetroShale may elect to pay up to an additional four quarterly dividends in kind at any point over the balance of the term. By electing to pay any dividend in kind, the ordinary quarterly cash dividend may be settled by way of increasing the then current liquidation preference of the preferred shares at a rate of 12% per annum. An affiliate of First Reserve is the sole holder of the preferred shares.

About PetroShale

PetroShale is an oil company engaged in the acquisition, development and production of high-quality oilweighted assets in the North Dakota Bakken / Three Forks.

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