The San Javier Mill is Nearing Completion – Interconnection Between the Federal Electricity Commission (CFE) Network and the San Javier Power Grid Has Begun and the Secretariat of the Environmment and Natural Resources Agency (Semarnat), Environmental Permits Are

ARCTIC HUNTER ENERGY INC.

Suite 1610 - 675 West Hastings Street · Vancouver · British Columbia · V6B 1N2 Telephone: (604) 681-3131

NEWS RELEASE

December 5, 2017 TSX-V Trading Symbol: AHU

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THE SAN JAVIER MILL IS NEARING COMPLETION – INTERCONNECTION BETWEEN THE FEDERAL ELECTRICITY COMMISSION (CFE) NETWORK AND THE SAN JAVIER POWER GRID HAS BEGUN AND THE SECRETARIAT OF THE ENVIRONMMENT AND NATURAL RESOURCES AGENCY (SEMARNAT), ENVIRONMENTAL PERMITS ARE PENDING

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VANCOUVER, B.C. - Arctic Hunter Energy Inc. (TSX-V: AHU) (“Arctic Hunter” or the “Company”) is pleased to announce that the Company management has received the recently completed November report, monitoring the rapid progress of the work being conducted on the San Javier Flotation Mill situated in the Gold & Silver mining district of the Sierra Madre Gold belt, in the State of Sonora, Mexico. The San Javier Mill is currently nearing completion and the newly re-furbished and upgraded equipment is expected to be a fully operational 100 Ton per day capacity flotation mill. Work is being conducted by experienced local Mexican electrical contractors, employing more than twenty-five (25) local workers and skilled tradesmen who have been working around the clock in two, twelve hour shifts per day, seven days a week. The San Javier Mill is currently maintaining schedule guidelines and is complying with all budgetary guidelines, and the Mill is expected to be commissioned as soon as all electrical testing is completed and all necessary environmental permits have been issued to the Company.

San Javier Mill - Progress report (November) - Updates include the following:

• The Mexican Federal Electricity Company (CFE), the state-owned electric utility of Mexico, has begun circuit testing the interconnection between the area network, with that of the San Javier Mill power grid. Minor modifications have been recommended and work on the network is expected to be completed later next week.
• The Mexican Federal Agency of Environmental Protection, the Secretariat of Environment and Natural Resources (SEMARNAT) is expected to be issuing the required environmental permits sometime in mid-December. The Secretariat is charged with the mission of conserving the area’s rich ecosystems, while managing and implementing site guidelines, site specifications and overseeing the tailings dams located on the mill site with the goal of fostering sustainable development of natural mining resources expected to be utilized on the project.

Tim Coupland, President & CEO stated, “We continue making great progress to date and continue meeting our installation and set-up timelines. We are currently waiting for the required environmental permits which are expected to be issued by the Secretariat of Environment and Natural Resources (SEMARNAT) in mid-December. The Company is now nearing the complete re-furbishment and modernization of the mill. The San Javier Mill is nearing final completion, set-up, and is making preparation for final equipment and electrical grid and power grid testing. The San Javier Mill has now been fully modernized, with the intent to identify and capture all potential milling and direct-ship mining opportunities that are situated within this mining district with its many gold and silver mines.”

THE SAN JAVIER MILL - SONORA STATE, MEXICO

The Company has paid the sum of USD $250,000 and has successfully acquired a 30% interest in Real de Rebeico Gold S.A. de C.V. (“Rebeico Gold”), which owns an interest in a State owned 100 ton per day flotation mill situated near the city of Hermosillo in Sonora State, Mexico. The formal option agreement with Rebeico Gold of Sonora, Mexico allows Arctic Hunter to earn the initial 30% interest for USD $250,000 (earned and vested), and an additional 20% interest (for up to a 50% interest) in Rebeico Gold for an additional USD $250,000. Rebeico Gold holds the right to operate the strategically located San Javier Mill and the right to receive its pro-rata production proceeds derived therefrom pursuant to an assignment agreement between Rebeico and Exlporacion y Desarollo del Desierto, S.A de C.V. (“EDDSA”) dated April 24, 2017. EDDSA holds the operating rights and the right to receive all proceeds from the San Javier Mill, and the right to conduct ancillary activities on the project site pursuant to a 10 year lease agreement between EDDSA and the state of Sonora, Mexico, dated February 24, 2015. The San Javier Mill Project site is located within the heart of the prolific Sierra Madre Gold belt and mining district of northern Mexico and is easily accessed by paved highway from the City of Hermosillo, Mexico. The San Javier Mill is a former working and operational State owned flotation mill that is surrounded by a region that has had widespread historical mining, dating back from colonial times through to the 21^st century. The Mill formerly serviced many of the working gold, copper and silver mineral concessions and mines located in this mining region in the past.

ABOUT ARCTIC HUNTER – MEXICAN GOLD EXPLORATION AND MILLING PRODUCTION CAPABILITY

The Company is a Canadian Oil & Gas exploration and mining resource development Company that is now focused on acquiring production capabilities, obtaining potential future production revenues, discovering and advancing high grade gold, silver and copper deposits and mining concessions situated within a large mining district in Sonora, Mexico. The Company has now acquired a 30% interest in Rebeico Gold of Sonora, Mexico, which holds an interest in the San Javier Mill, which gives the Company the right to receive its share of proceeds from the San Javier Mill which is situated in the Sierra Madre Gold Belt. The Company is now strategically positioned, to identify and capture all potential milling and direct-ship mining opportunities situated in the region. The Company identifies, acquires and finances the acquisition, exploration and development of mining and oil and gas assets primarily situated in Western Canada and Mexico. The Company is continually reviewing future mining production and exploration opportunities, through selective property acquisitions and identifying low risk exploration and drilling activities situated in Canada, the United States, Mexico and abroad.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Tim Coupland, President and CEO Arctic Hunter Energy Inc.

Tel: (604) 681-3131 [email protected]

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