Corridor Announces 2014 Year End Results and Reserves

Press Releases

HALIFAX, Nova Scotia, March 31, 2015, (TSX – CDH): Corridor Resources Inc. (“Corridor”) announced today its 2014 year end financial results and reserve evaluations. Corridor’s annual financial statements, management’s discussion and analysis and Annual Information Form for the year ended December 31, 2014 have been filed on SEDAR at www.sedar.com and are available on Corridor’s website at www.corridor.ca.

All amounts referred to in this press release are in Canadian dollars unless otherwise stated.

2014 Highlights

On April 1, 2014, Corridor entered into a joint venture (the “Anticosti Joint Venture”) with the Government of Québec, through its affiliate Ressources Québec Inc., Pétrolia Inc. and Saint-Aubin E&P Québec Inc. to appraise and potentially develop hydrocarbon resources on Anticosti Island, Québec. As part of the establishment of the Anticosti Joint Venture, Corridor holds an interest of 21.67% in Anticosti Hydrocarbons L.P. (“Anticosti Hydrocarbons”) and received net cash proceeds of $13,479 thousand. Subject to certain exceptions, the first $100 million of capital expenditures of the Anticosti Joint Venture will be at no cost to Corridor.

• During the year, five stratigraphic corehole wells were drilled into the Macasty Formation as part of the first phase of the Anticosti Joint Venture’s exploration program. The Company is encouraged with the initial results of the program, as the results of the core analysis and petrophysical log surveys generally meet or exceed our expectations. The Anticosti Joint Venture’s stratigraphic corehole program will resume in the spring of 2015 and is expected to be completed during the year.

• On October 28, 2014, Corridor announced the initial results of its 2014 well re-entry and fracturing program at the McCully Field and Elgin Field in southern New Brunswick. The program resulted in increased natural gas production and revenues from the McCully Field and demonstrated that the Frederick Brook shale is productive from at least six different sub-intervals across a distance of 25 kilometers. The program resulted in the fracture stimulation of two sand intervals in the Hiram Brook and three shale intervals in the Frederick Brook.

• Corridor’s average natural gas sales price for 2014 increased to $8.59/mscf from $6.91/mscf in 2013 mainly as a result of higher natural gas sales prices in the New England market.

• Cash flow from operations increased to $12,244 thousand for the year ended December 31, 2014 from $10,934 thousand for the year ended December 31, 2013 due to the higher average natural gas prices in 2014.
• The premiums for the natural gas prices realized by Corridor averaged $US3.74/mmbtu in excess of the Henry Hub natural gas prices for the year ended December 31, 2014 compared to $US3.19/mmbtu for the year ended December 31, 2013.
• As at December 31, 2014, Corridor had cash and cash equivalents of $19,207 thousand, net working capital of $20,906 thousand and no outstanding debt.
• Subsequent to the year end, Corridor entered into a forward sale agreement for the period from November 1, 2015 to March 31, 2016 for 2,500 mmbtu per day of natural gas production (approximately 2.3 mmscf per day) at an average price of $US9.25/mmbtu.

The following table provides a summary of Corridor’s financial and operating results for the three and twelve months ended December 31, 2014 with comparisons to the three and twelve months ended December 31, 2013.

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