CALGARY, ALBERTA--(Marketwired - June 16, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

Bonavista Energy Corporation ("Bonavista") (TSX:BNP) is pleased to announce that it has closed its previously announced bought deal financing of 34,328,650 common shares (the "Common Shares") of which 4,477,650 Common Shares were issued pursuant to the exercise of the over-allotment option granted to the underwriters, at $3.35 per Common Share to raise gross proceeds of approximately $115 million (the"Offering"). The syndicate of underwriters was co-led by CIBC Capital Markets and TD Securities Inc.

The net proceeds of the Offering will be used initially to reduce Bonavista's bank indebtedness. Given the strong results of Bonavista's drilling program and significant efficiencies achieved year-to-date, this financing allows Bonavista the latitude to expand its capital program upon the realization of the futures commodity price forecast. Bonavista will remain focused on consolidation opportunities within its core areas, while rationalizing non-core assets to further enhance financial flexibility.

This press release is not an offer of the Common Shares for sale in the United States. The Common Shares may not be offered or sold in the United States absent registration or an exemption from registration. The Common Shares will not be publicly offered in the United States. The Common Shares have not been and will not be registered under the U.S. Securities Act, or any state securities laws.

Bonavista is a mid-sized dividend paying energy corporation focused on the efficient development of high quality oil and natural gas assets while providing sustainable value to shareholders.

Note Regarding Forward-Looking Statements

Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans" and similar expressions, are forward-looking information that represents management of Bonavista's internal projections, expectations or beliefs concerning, among other things, the use of net proceeds of the Offering, future commodity price forcast as well as Bonvista's future plans and focus. The forward-looking statements contained in this news release are based on certain assumptions, which management of Bonavista considers reasonable. The forward-looking statements contained in this news release necessarily involve known and unknown risks and uncertainties, which may cause Bonavista's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, holders of Bonavista common shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted.