DOUGLAS, Isle of Man, July 21, 2014 /CNW/ – Blue Sky Exploration Limited, c/o McIntyre Partners, 30A, Brook Street, London, United Kingdom, W1K 5DJ (the “Offeror“) acquired, on July 18, 2014, debentures (“Debentures“) in the aggregate principal amount of $1,250,000 from Montana Exploration Corp. (“Montana“) (collectively, the “Financing“). The Debentures bear interest at a rate of 12% per annum and are payable on demand at any time on or after the date that is one year from the effective date of each Debenture (being October 21, 2013 and November 29, 2013). At any time before five years from the effective date of each Debenture, Blue Sky has the option to exchange the principal amount owing on the Debentures into common shares of Montana (the “Shares“) at a price of $0.25 per Share for up to 5,000,000 Shares.

Prior to closing of the Financing, Blue Sky (previously Wolseley Ventures Limited) beneficially owned and controlled 20,000,000 Shares and 17,500,000 class A warrants of Montana (“Class A Warrants“). Each Class A Warrant entitles the holder to purchase one Share at an exercise price equal to $0.25 per Share until March 22, 2015. Prior to the issuance of the Debentures, Blue Sky beneficially owned and controlled approximately 19.7% of the issued and outstanding Shares on an undiluted basis and approximately 31.5% on a fully diluted basis, assuming full exercise of Blue Sky’s Class A Warrants.

Upon closing of the Financing, Blue Sky beneficially owns and controls approximately 19.7% of the issued and outstanding Shares on an undiluted basis and approximately 34.3% on a fully diluted basis, assuming the full exercise of Blue Sky’s Class A Warrants and full conversion of the Debentures.

The acquisition of securities in Montana by the Offeror is for investment purposes. The Offeror may from time to time dispose of, or acquire, additional securities of Montana. The Debentures were sold to the Offeror in reliance upon the prospectus exemption in Section 2.10 of National Instrument 45-106 Prospectus and Registration Exemptions.

This press release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which also requires a report to be filed with regulatory authorities in each of the jurisdictions in which Montana is a reporting issuer containing information with respect to the foregoing matters (the “Early Warning Report“). A copy of the Early Warning Report will appear with Montana’s documents on the System for Electronic Document Analysis and Retrieval and may also be obtained by contacting Janan Paskaran on behalf of the Offeror at 403.776.3728.

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the accuracy or adequacy of this press release.

SOURCE Blue Sky Exploration Limited