CALGARY, ALBERTA--(Marketwired - June 15, 2016) -

NOT FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.

GRANITE OIL CORP. ("Granite" or the "Company") (TSX:GXO)(OTCQX:GXOCF) is pleased to announce that it has closed its previously announced bought deal financing. A total of 2,324,300 common shares have been issued at a price of $7.10 per common share for gross proceeds of $16,502,530, which included the exercise in full of the over-allotment option granted to the underwriters (the "Offering").

The syndicate of underwriters was co-led by National Bank Financial Inc. and Raymond James Ltd., and included Cormark Securities Inc., CIBC World Markets Inc., Dundee Securities Ltd., RBC Dominion Securities Inc., Scotia Capital Inc. and TD Securities Inc.

The net proceeds of the Offering will initially be used to reduce bank indebtedness and then subsequently redrawn to expand the drilling program in the core of Granite's Alberta Bakken property and to accelerate the development of Granite's West Alberta Bakken acreage. Granite has a 100% working interest land position in both the core and the West areas.

Reader Advisory

Certain statements contained herein, such as the use of net proceeds of the Offering, constitute forward-looking statements. We believe the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. The forward-looking statements included in this press release are made as of the date of this press release and Granite disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.