Nostra Terra Regulatory News (NTOG)

6 September 2017

Nostra Terra Oil and Gas Company plc

("Nostra Terra" or the "Company")

Full ownership of Pine Mills & Increase of Reserves

Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, is pleased to announce it has successfully secured the remaining 12.5% Working Interest in the Pine Mills oilfield, Texas. Nostra Terra now has 100% ownership of Pine Mills.

Highlights

· Successful completion of auction, which was undertaken yesterday, resulting in Nostra Terra owning 100% Working Interest in Pine Mills

o Effective date of 100% ownership 1 November 2016

· Increase of Pine Mills Reserves:

o Net Proven Reserves ("1P Reserves") of 326,000 barrels of oil at Pine Mills (as of April 2017)

o US$4.03million NPV10 valuation to Nostra Terra (as of April 2017)

· Average 4-month oil production at Pine Mills stands at 106 bopd

o Sustained 15% increase in oil production since assuming operatorship of Pine Mills

· Access to non-dilutive funds via Senior and hedging facilities

· Progress in Egypt

Judgement in Favour of Nostra Terra and Auction Result

As previously announced, Nostra Terra has a non-appealable Court Judgement against Hammerhead Management Partners ("Hammerhead") (the "Court Judgement") from GFP Texas, the previous majority owner of Pine Mills. This Court Judgement stood at $450,246 and was secured by Hammerhead's ownership of a 12.5% working interest in Pine Mills. On 5 September 2017, an auction was held for the sale of the 12.5% stake in Pine Mills. As a result of the auction Nostra Terra now has full ownership of the 100% working interest in Pine Mills.

Additionally Hammerhead owes Nostra Terra a further US$594,031 (plus accruing interest), which is comprised of the outstanding balance of the original Court Judgement and a second trade payable. Nostra Terra will continue to take action against Hammerhead to recover this amount.

Pine Mills Bankable Reserves Increase

On 5 April 2017, Nostra Terra published the result of the Company's Texas Assets Independent Reserves Report ("the Reserves Report"). Nostra Terra commissioned the Reserves Report to act as a bankable assessment of the Company's oil-producing assets to enable it to access hedging facilities against future oil production.

The Reserves Report originally assigned a US$3.53million NPV10 valuation to the Company's then 87.5% stake in Pine Mills and identified 1P Reserves of 285Mbbl attributable to Nostra Terra. As a result of yesterday's auction, Nostra Terra NPV10 valuation is now increased to US$4.03million, based upon its 100% Working Interest in Pine Mills comprising of 326Mbbl of 1P Reserves.

Pine Mills operational update

Average daily oil production over the last 4 months at Pine Mills now stands at 106 bopd. This is a 15% increase since Nostra Terra first assumed the operatorship of Pine Mills on 1 November 2016. Nostra Terra has identified further potential for development of Pine Mills through reactivating existing drilled wells, development drilling of proven locations and exploration drilling. Current production remains above 100 bopd and was not affected by the recent hurricane in South Texas and Louisiana.

Hedging facility

Operations at Pine Mills have been profitable every calendar month since Nostra Terra became the operator. Having established a positive track record of lowered operating costs and increased production, along with the additional working interest increases the value of Pine Mills.

Nostra Terra is in the process of updating its Reserves Report and establishing a hedging facility. The board anticipates the hedging facility will provide the Company with the ability to reduce risks associated with fluctuation of commodity prices and improve access to a significant amount of non-dilutive funds, which can be used at the Company's discretion in the USA and Egypt.

Egypt

Nostra Terra continues to make encouraging headway in Egypt and expects to provide an update to the market in the near future.

Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:

"We're very pleased with the results. Following yesterday's auction we have confirmed Nostra Terra's 100% Working Interest in Pine Mills, effective from 1 November 2016. We anticipate this will have a materially positive impact on the forthcoming Interim Report for the 6 months ended 30 September. Combined with the operational improvements we have made at Pine Mills, both in cutting costs and increasing sustained oil production, we expect to be able to demonstrate tangible evidence of Nostra Terra's turnaround over the course of 2017.

At the same time, we are making similarly significant progress in Egypt and expect to be able to make an announcement shortly."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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