Point Loma Resources Ltd. announced an update on production and upcoming development drilling of the corporation's Wizard Lake Rex oil discovery and the issuance of Settlement Units (as defined below). The Wizard Lake Rex oil discovery well has been producing since June 5, 2019 and continues to clean up with increasing oil rates as the well maintains consistent pumping conditions. Point Loma will monitor and look to increase pump rates as weather conditions improve in the area which will allow for greater fluid volumes and potentially increased oil rates. The production facility is now resulting in clean oil loads being delivered to the purchaser which is expected to significantly reduce current operating costs. As previously announced on May 30, 2019, the Corporation's partner, Salt Bush, has agreed to commence a two well farm-in program with the first delineation well expected to be spudded prior to July 31, 2019. A successful fully completed 2 well farm-out would result in three producing oil wells. Point Loma would be the operator with a 50% working interest in the Rex oil discovery well, a 25% before payout /50% after payout working interest in both the farm-out wells and a 50% working interest in the remaining lands. Together with Salt Bush the acreage accumulated equals 3,385 acres and provides 18 potential drilling opportunities on the pool as currently mapped. Point Loma and Salt Bush have also secured the opportunity to drill and earn an additional 720 acres in the area adding to the total opportunities. A total of approximately $5 million of gross capital could be spent on the two well farm-out to further delineate the oil pool at no cost to the Corporation. This property represents a key oil discovery for Point Loma and is expected to increase the oil production weighting for the Corporation significantly. At the current pumping rate, the oil and ngl weighting for the Corporation has increased to approximately 40%. As the well continues to clean up this could continue to increase with follow-up drilling potentially moving the production split to an even higher oil weighting. The Corporation expects that the farm-out with Salt Bush will further delineate the pool with a 1,500m horizontal well and a 1,800m horizontal well to be completed with multi-stage fracs. This is expected to assist in the confirmation of pool size and also oil productivity and will test the application of extended reach wells for further development of the pool. With the anticipated success of the two farm-out wells Point Loma projects additional revenues and expects to demonstrate the economics of full field development.