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Santa Maria Petroleum Inc. Announces Closing of Private Placement

V.CLAS.H

TORONTO, ONTARIO--(Marketwired - Sept. 23, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Santa Maria Petroleum Inc. (the "Company") (TSX VENTURE:SMQ.H) is pleased to announce the closing of a non-brokered private placement offering of 30,000,000 common shares ("Common Shares") at $0.05 per share for aggregate gross proceeds of $1,500,000 (the "Offering").

The proceeds of the Offering will be used to settle certain outstanding debt of the Company and for general working capital purposes.

In connection with the Offering, the Company relied on Section 5.4 of the NEX Policy for which the Company received conditional approval from the TSX Venture Exchange ("TSXV"). The Offering remains subject to final TSXV acceptance.

The Common Shares issued under Offering are subject to a hold period expiring four months and day from the date here. Following this Offering, the Company now has 35,006,371 Common Shares issued and outstanding.

The Common Shares have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities offered in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to the impact of general economic conditions, industry conditions, currency fluctuations and the availability of future financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Neither 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.

Lisa-Marie Iannitelli
Investor Relations
(416) 362-4441



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