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2016-03-14

SHAMARAN ANNOUNCES FINANCING PROPOSAL

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SHAMARAN ANNOUNCES FINANCING PROPOSAL

March 14, 2016 - ShaMaran Petroleum Corp. ("ShaMaran" or the "Company") (TSX
VENTURE: SNM) (Nasdaq Stockholm First North: SNM) is pleased to announce a
proposed financing arrangement (the “Arrangement”) to complete its share of the
estimated investments in 2016 in order to deliver the Atrush field into
production. The Atrush project is progressing according to plan with first oil
targeted mid-2016.

The Arrangement has been proposed to holders of the USD 150 million bonds
(“Existing Bondholders”) under ISIN NO 0010692882 (the “Existing Bonds”) listed
on the Oslo stock exchange which were issued November 13, 2013 by General
Exploration Partners, Inc. (“GEP”), a wholly owned subsidiary of ShaMaran which
holds a 26.8% interest in the Atrush Block production sharing contract.

The Arrangement will provide the Company with additional liquidity in 2016 of
approximately USD 33 million net of transaction costs. The principal terms of
the Arrangement are as follows:

1. GEP issues new USD 17 million super senior bonds (“Super Senior Bonds”).
The Super Senior Bonds will be based on the same agreement as the Existing
Bonds with the same maturity date of November 13, 2018 and an 11.5% coupon
interest payable semi-annually. GEP will have the option to pay the coupon
interest on the Super Senior Bonds in cash or in kind by issuing new bonds
(“PIK Bonds”). GEP has entered into an agreement to underwrite the Super
Senior Bonds with major shareholders, Lorito Holdings SARL and Zebra
Holdings and Investments SARL, companies owned by the Lundin Family Trust.

1. The Company offers the Existing Bondholders the option to convert up to USD
18 million of Existing Bonds at face value into ShaMaran common shares at
market price following approval of the Arrangement. The conversion offer is
to commence following approval of the Arrangement, with pro rata allocation
among Existing Bondholders upon oversubscription.

1. The Bond Agreement for the Existing Bonds is to be amended so that (i) the
2016 coupon interest (USD 17.25 million before considering any conversion
in 2 above) is settled by issuing new PIK Bonds; (ii) GEP has the option to
pay in cash or in kind (by issuing new PIK Bonds) the post 2016 coupon
interest; and (iii) certain waivers and amendments are made to the terms of
the Existing Bonds including the subordination of Existing Bonds’ security
to the Super Senior Bonds’ security.

ShaMaran is considering offering a subsequent private placement of shares for
cash for the remainder if USD 18 million is not converted under 2 above.

To facilitate the approval process a Summons was issued on March 14, 2016 by
Nordic Trustee requesting a meeting of Existing Bondholders on March 30, 2016,
13:00 hours in Oslo.

A number of Existing Bondholders who have already been introduced to the terms
of the Arrangement have been supportive to the proposal. The Summons is
available on Nordic Trustee’s website at www.stamdata.com.

The conversion offer is subject to final approval by TSX Venture Exchange.

ShaMaran has published an updated corporate presentation on its website
(www.shamaranpetroleum.com).

ABOUT SHAMARAN

ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration
company with a 26.8% direct interest in the Atrush oil discovery until such
time that the Kurdistan Regional Government has completed the exercise of its
right to acquire up to a 25% interest. The Atrush Block is currently undergoing
an appraisal and development campaign.

ShaMaran is a Canadian oil and gas company listed on the TSX Venture Exchange
and the Nasdaq Stockholm First North Exchange under the symbol "SNM". Neither
the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. Pareto Securities AB is the Company’s
Certified Advisor on NASDAQ OMX First North.

The Company's condensed interim consolidated financial statements, notes to the
financial statements and management's discussion and analysis have been filed
on SEDAR (www.sedar.com) and are also available on the Company's website
(www.shamaranpetroleum.com).

FORWARD LOOKING STATEMENTS

This news release contains statements and information about expected or
anticipated future events and financial results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as legal and political risk, civil unrest, general economic, market and
business conditions, the regulatory process and actions, technical issues, new
legislation, competitive and general economic factors and conditions, the
uncertainties resulting from potential delays or changes in plans, the
occurrence of unexpected events and management’s capacity to execute and
implement its future plans. Any statements that are contained in this news
release that are not statements of historical fact may be deemed to be
forward-looking information. Forward-looking information typically contains
statements with words such as "may", "will", "should", "expect", "intend",
"plan", "anticipate", "believe", "estimate", "projects", "potential",
"scheduled", "forecast", "outlook", "budget" or the negative of those terms or
similar words suggesting future outcomes. The Company cautions readers
regarding the reliance placed by them on forward?looking information as by its
nature, it is based on current expectations regarding future events that
involve a number of assumptions, inherent risks and uncertainties, which could
cause actual results to differ materially from those anticipated by the
Company.

Actual results may differ materially from those projected by management.
Further, any forward-looking information is made only as of a certain date and
the Company undertakes no obligation to update any forward-looking information
or statements to reflect events or circumstances after the date on which such
statement is made or reflect the occurrence of unanticipated events, except as
may be required by applicable securities laws. New factors emerge from time to
time, and it is not possible for management of the Company to predict all of
these factors and to assess in advance the impact of each such factor on the
Company’s business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in
any forward-looking information.

FOR FURTHER INFORMATION PLEASE CONTACT:

Chris Bruijnzeels
President and CEO
ShaMaran Petroleum Corp.
+41 22 560 8605
chris.bruijnzeels@shamaranpetroleum.com

Sophia Shane
Corporate Development
ShaMaran Petroleum Corp.
+1 604 689 7842
sophias@namdo.com
www.shamaranpetroleum.com

Robert Eriksson
Investor Relations, Sweden
ShaMaran Petroleum Corp.
+46 701 112615
reriksson@rive6.ch

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