Caledonian Completes Equity Issue and Secures Two Year Extension to 7.5% First Secured Notes

CALGARY, Sept. 12, 2016 /CNW/ - Caledonian Royalty Corporation ("Caledonian") is pleased to announce that it has successfully closed a $10 million equity issue.  Net proceeds of $9 million were applied to repay all of the individual holders of Caledonian's 7.5% first secured notes (the "Notes") on August 31, 2016 and to further reduce the balance of the outstanding principal amount of the Notes to $41 million.  The remaining two Canadian Bank Noteholders have agreed to extend the maturity date of the Notes for two years to August 31, 2018 under essentially the same terms and conditions.

Caledonian is continuing the equity capital raise from accredited investors through the issuance of additional Units priced at $2.00 comprised of one common share and one half a common share purchase warrant exercisable at $3.50 per share for three years from the closing date of each tranche. Further equity capital raised will be used for general corporate purposes, debt repayment and new acquisitions of oil and natural gas royalties.

ABOUT CALEDONIAN ROYALTY CORPORATION

Caledonian is a provider of alternative capital for the energy oil and gas sector through royalty-based financing as an alternative to conventional equity or debt financing and/or the sale of assets. Acquisitions by Caledonian to date total approximately $180 million, and Caledonian is actively seeking transactions that will support its business plan, while materially adding value for our stakeholders. We see numerous opportunities as a result of the current downtown in the energy industry, and our goal is to capitalize on acquisitions that are available.

SOURCE Caledonian Royalty Corporation

For further information: about Caledonian Royalty Corporation, please contact: Jim Kinnear, Chief Executive Officer or Charles Selby, President, by telephone at +1.403.532.8800 or by mail at 2200, 300 5th Ave. S.W., Calgary, Alberta T2P 3C4, Email: investor.relations@caledonianroyalty.com

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Caledonian Royalty Corporation

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