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Front Range Reports Fiscal Year-End Reserves at December 31, 2016

CALGARY, AB--(Marketwired - February 27, 2017) - Front Range Resources Ltd. ("Front Range" or the "Company") (TSX VENTURE: FRK) reports the results of its December 31, 2016 Reserves Assessment and Evaluation of its oil and gas properties, as evaluated by GLJ Petroleum Consultants Ltd. ("GLJ") in accordance with National Instrument 51-101 -- Standards of Disclosure for Oil and Gas Activities and the COGE Handbook.

A summary of the Company's reserves volumes according to reserve category as at December 31, 2016 is as provided in the following table. Unless otherwise stated, the reserves information included in this release is stated on a "company interest" basis, which represents Front Range's working interest (operated and non-operated) share of remaining reserves before deduction of royalties and including any royalty interests. Numbers presented in table may not add exactly due to rounding.

 
COMPANY SHARE OF MARKETABLE RESERVES (GROSS)
 
 
 
Reserves Category
 
 
 
Light & Medium
Crude Oil
(Mbbl)
 
 
 
Conventional
Natural Gas
(MMcf)
 
 
 
Shale
Natural Gas
(MMcf)
 
 
 
Natural Gas
Liquids
(Mbbl)
 
 
 
Total Oil
Equivalent
(Mboe)
Proved                    
  Producing   19   1,874   -   14   346
  Undeveloped   -   1,428   2,024   9   247
Total Proved   19   3,303   2,024   78   986
Probable   5   1,348   736   27   379
Total Proved plus Probable   24   4,651   2,760   105   1,365

A summary of the Company's estimated future net revenues associated with Front Range's reserves as at December 31, 2016 based on the GLJ January 1, 2017 price forecast is provided in the following table. It should not be assumed that the net present values estimated by GLJ represent the fair market value of the reserves. Numbers presented in table may not add exactly due to rounding.

 
Before Income Taxes Discounted at (%/year)
    0%   5%   10%   15%   20%
Reserves Category   (M$)   (M$)   (M$)   (M$)   (M$)
Proved                    
  Producing   2,833   2,512   2,207   1,955   1,753
  Undeveloped   816   226   -104   -284   -377
Total Proved   9,599   7,645   6,258   5,274   4,559
Probable   5,203   3,091   1,971   1,349   981
Total Proved plus Probable   14,802   10,737   8,229   6,622   5,540
 

Relevant portions of the GLJ January 1, 2017 price forecast used in the Company's evaluation are as follows:

                     
            Pentanes        
    Natural Gas   Light Crude Oil   Plus   Inflation   Exchange
Year   Henry Hub   AECO Gas Price   WTI   Edmonton   Edmonton   Rates   Rate
    ($U.S./MMBtu)   ($CDN/MMBtu)   ($US/bbl)   ($CDN/bbl)   ($CDN/bbl)   (%/year)   ($US/$CDN)
Forecast                            
2017   3.60   3.46   55.00   69.33   72.11   2.0   0.750
2018   3.20   3.10   59.00   72.26   74.79   2.0   0.775
2019   3.40   3.27   64.00   75.00   78.75   2.0   0.800
2020   3.60   3.49   67.00   76.36   79.80   2.0   0.825
2021   3.80   3.67   71.00   78.82   82.37   2.0   0.850
2022   4.00   3.86   74.00   82.35   86.06   2.0   0.850
2023   4.20   4.05   77.00   85.88   89.32   2.0   0.850
2024   4.31   4.16   80.00   89.41   92.99   2.0   0.850
2025   4.39   4.24   83.00   92.94   97.59   2.0   0.850
2026   4.48   4.32   86.05   95.61   99.91   2.0   0.850
2027+   +2.0%/yr   +2.0%/yr   +2.0%/yr   +2.0%/yr   +2.0%/yr   2.0   0.850

Further information relating to Front Range is also available on its website at www.frrl.ca.

ADVISORY ON FORWARD-LOOKING STATEMENTS
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including statements regarding the Company's future net revenues. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Front Range's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Front Range believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward- looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Front Range does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.

All evaluations and reviews of future net revenue are stated prior to any provision for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. There is no assurance that such price and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of the reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein.

Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value. References to oil in this discussion include light and medium crude oil and natural gas liquids ("NGLs"). NGLs include condensate, propane, butane and ethane. References to gas in this discussion include natural gas.

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 NEWS RELEASE.