EFLO Energy Inc. (fka EFLO)

[Dina]

Last pr did not sound positive.

EFLO Energy, Inc. Ceases to be Operator, Provides Corporate Update and

October 28, 2015 – Houston, Texas. EFLO Energy, Inc. (the “Company”) (OTCQB: EFLO) announces that, pursuant to the terms of the joint venture agreements, it has ceased to be operator of the Kotaneelee Project, Yukon. A new operator will be appointed by the joint venture. Since January 2015, the Company’s new management team and board of directors have focused their resources on seeking substantial financing or a joint venture partner to fund a rework or recompletion of up to three wells on the Kotaneelee Project, which is anticipated to cost from $8,000,000 to $10,000,000. Due to the depressed oil and gas market, the Company has been unsuccessful in obtaining such financing.

Further, the Yukon Government has required that four existing wells at the Kotaneelee Project be suspended or abandoned in accordance with the standards required by the Oil and Gas Act (Yukon) by March 31, 2016. A failure to suspend or abandon the wells by March 31, 2016 will result in the government assuming management and control of these wells. Presently, the Company has insufficient funds to suspend or abandon the wells and there is a substantial risk that it will not obtain sufficient financing to satisfy the costs of suspending or abandoning the wells by March 31, 2016.

Throughout 2015, the new management team has obtained monthly bridge loans (the “Lenders”) to fund the care and maintenance costs of the Kotaneelee Project and to meet the costs associated with its reporting obligations under the Securities Exchange Act of 1933, as amended (the “Exchange Act”). However, the Company has been notified by the Lenders that they will no longer fund the ongoing operations of the Company. As a result, there is a substantial risk that the Company will be unable to pay its creditors, satisfy its ongoing obligations at the Kotaneelee Project and meet its ongoing reporting obligations under the Exchange Act.

Environmental Protection Order

The Yukon Government issued an Environmental Protection Order for Spills against the Company in connection with a spill at the Kotaneelee Project. The Company’s management team immediately stopped any further spillage on site and, with its joint venture partners, are in the process of repairing and remedying any effects of the spill. Based on an initial assessment, the spill was limited to a small area located at the Kotaneelee Gas Facility. The Company’s limited financial resources will be allocated to remedying the effects of the spill.

Resignations of Directors and Officers

The Company also announces Eric Prim and Nico Civelli have resigned as directors of the Company. Further, Matthew Anderson has resigned as Chief Financial Officer of the Company. The resignations of Messrs. Prim, Civelli and Anderson were not due to, and were not caused by, in whole or in part, any disagreement with the Company related to the Company’s operations, policies, practices or otherwise.

For further information please contact:

EFLO Energy, Inc.
Al Conrad Kerr Jr., CEO
[phone]