Banking Agreement

30 June 2016

NIGHTHAWK ENERGY PLC

("Nighthawk" or "the Company")

Amendment to Existing Bank Agreement and Water Flood Pilot Financing Plans

Nighthawk, the US focused oil development and production company (AIM: HAWK and OTCQX: NHEGY), is pleased to announce that on 29 June 2016 it entered into an amendment to the existing bank agreement with the Commonwealth Bank of Australia ("CBA").

New Amendment to Existing Bank Agreement

As previously reported, since December 2015, the Company has been involved in negotiations with its banking partner, CBA, regarding a new amendment to the existing credit agreement. The Company is pleased to announce that the parties executed the fourth amendment to the existing bank agreement on 29 June 2016.

A summary of the key terms and conditions of the amended bank agreement are as follows:

o $23 Million principal amount

o Interest will be at Libor plus 6%, payable monthly in cash;

o Arrangement by the Company of an additional $3 million for the Water Flood pilot project to be completed by 31 July 2016

o Matures on 30 June 2017, unless extended by CBA at their sole discretion, with Nighthawk to provide CBA with a refinancing plan on or before March 31, 2017;

o Existing unsecured loan note holders to agree to deferral of all cash interest and royalty payments by 31 August 2016

o Nighthawk are no longer subject to the original financial covenants, with covenants more reflective of the current market being successfully negotiated.

The Company is negotiating the deferral of the interest and royalty payments with existing loan note holders.

Water Flood Financing Plan

Nighthawk is in the process of negotiating the financing for the water flood pilot project through the issuance of a new $3 million second lien note with certain of its major shareholders. The new loan note, which is subject to necessary approvals, is expected to have a 15% coupon and an override feature, in line with previous loan notes.

Rick McCullough, Chairman of Nighthawk, commented:

"I am pleased to announce this new agreement with our banking partner, CBA. This is the culmination of much work by a number of parties and I am extremely pleased with the support we have received from everyone involved.

Along with the with the recent completion of regulatory approval of the Company's Arikaree Creek water flood pilot project, this concludes another major step in the realization of the benefits of the water flood pilot project that we plan to implement later this year. As previously stated, we expect that project to drive both production and reserve additions which will be beneficial for all stakeholders of Nighthawk."

The Company will provide a further update in due course.

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