May 25, 2017

AIMCo Announces Significant Investment in Ikkuma Resources

Edmonton, Alberta (May 25, 2017) – Alberta Investment Management Corporation (“AIMCo”), on behalf of certain of its clients, is pleased to announce that today it has successfully entered into a strategic financing relationship with Ikkuma Resources Corp., (“Ikkuma”) (TSE: IKM).

Based upon the terms of the agreement, the financing relationship provides for a debt-with-warrants financing consisting of a CAD $45 million second lien senior secured term loan, which bears annual interest at 7.25% and matures on March 31, 2022, and warrants issued by Ikkuma, for no additional consideration, to purchase common shares of Ikkuma to AIMCo, entitling AIMCo to acquire up to 6,750,000 common shares for a period of three years, at an exercise price of $0.86 per Common Share.

Ikkuma is a growth-oriented oil and gas company operating in the Alberta and BC Foothills. AIMCo’s investment in Ikkuma provides its clients an attractive opportunity to gain direct exposure to a Calgary-based Canadian energy company focused on long-term value creation through high growth, low decline, gas-weighted, oil upside in conventional bypassed reservoirs. The technical team at Ikkuma has worked together for over a decade in the Foothills Region of Western Canada, demonstrating the unique skills and repeat success at exploiting a complex and prolific play type that are fundamental ingredients for a successful growth-oriented company.

“AIMCo is very pleased to have an opportunity to increase our investment in Ikkuma Resources, on behalf of our clients, by way of this strategic financing relationship," states Peter Pontikes, Executive Vice-President, Public Equities of AIMCo. “AIMCo enjoys a strong working relationship with Ikkuma’s accomplished management team, and we have great confidence in their ability to most effectively utilize this investment to navigate current challenges facing the market, while also positioning the company for future growth.”

Tim de Freitas, President and CEO of Ikkuma Resources Corp. comments “Having a large sophisticated Albertabased Institutional Investor alongside Ikkuma is a privilege. AIMCo, has supported Ikkuma from its inception several years ago, and continues to share Ikkuma’s view of long term value creation within Alberta’s prolific foothills reservoirs. This investment increases the Corporation’s liquidity and allows it to pursue its exciting new light oil discovery, through 2017 and beyond.”