OPERATIONS UPDATE

The Company continues to focus on drilling-based growth opportunities in Australia's Cooper Basin, where well costs including drilling, completion and tie-in have seen an estimated 30-40% reduction since the Company's 2014/2015 drilling campaign. Reduced drilling costs and ongoing efforts to reduce variable operating expenditures, combined with the de-risking of future development locations following the Company's successful 2015 fracture stimulation program provide the opportunity for sustainable and profitable growth in the Cooper Basin despite the uncertain commodity price environment.

Bengal is currently evaluating its development, appraisal and exploratory drilling opportunities within the Cooper Basin, with the hopes of finalizing a multi-well drilling and fracture stimulation program during the second half of calendar 2016. The Company will provide a further update on its upcoming operations when the activity plans are finalized.

CORPORATE RESERVES

The reserves data set forth below is based upon an independent reserve assessment and evaluation prepared by GLJ with an effective date of March 31, 2016 (the "GLJ Report"). The following presentation summarizes the Company's crude oil, natural gas liquids and natural gas reserves and the net present values before and after income taxes of future net revenue for the Company's reserves using forecast prices and costs based on the GLJ Report. The GLJ Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") and the reserve definitions contained in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101").

All evaluations and reviews of future net cash flows are stated prior to any provisions 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. It should not be assumed that the estimates of future net revenues presented in the tables below and in the "Highlights" section above represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances from these assumptions could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein.

All of Bengal's reserves are located in Australia. In discussion with GLJ during the preparation of the GLJ Report, the reserves previously attributed to the Company's Oak, British Columbia and Toparoa, Australia properties were written off during the year ended March 31, 2016 and, as such, no reserves have been attributed in the GLJ Report for the year ended March 31, 2016.

Reserves Summary

The Company's total proved plus probable reserves increased by 9% in fiscal 2016 to 6,204 MBOE. Proved reserves increased by 1% to 2,212 MBOE and comprised 36% of the Company's total proved plus probable reserves. Proved undeveloped reserves are 82% of the total proved reserves. The future capital in the GLJ Report (undiscounted) is $83.6 million for the proved and probable reserves and is $32.9 million for total proved reserves. The future capital is programmed over a 9 year time period for proved plus probable reserves and 5 year time period for proved reserves.

The following table provides summary reserve information based upon the GLJ Report and using the published GLJ April 1, 2016 price forecast.

Future Net Revenue Values

The estimated net present values ("NPV") of future net revenues associated with Bengal's reserves effective March 31, 2016 and based on the published GLJ April 1, 2016 future price forecast are summarized in the following tables:

Price Forecast

The GLJ April 1, 2016 price forecast is summarized as follows:

Comparison of Reserves and Values

The following table provides a comparison of Bengal's independent reserves summaries as evaluated by GLJ as at March 31 2016 (based on published GLJ April 1, 2016 price forecast) and at March 31 2015 (based on published GLJ April 1, 2015 price forecast). The NPVs shown are associated with all of Bengal's reserves before income taxes and discounted at 10%/year.

About Bengal

Bengal Energy Ltd. is an international oil and gas exploration and production company with producing and prospective light oil‐weighted assets in Australia and India. Bengal offers exposure to lower risk, current production and cash flow, combined with longer‐term high, potential impact exploration projects. The Company's strategy is to achieve per share growth in cash flow, production and reserves while establishing an attractive portfolio of future drilling and exploration opportunities. Additional information is available on our website at www.bengalenergy.ca.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The common shares of Bengal will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration or applicable exemption therefrom.

Cautionary Statements

Unaudited financial information

Certain financial and operating information included in this press release for the year ended March 31, 2016, such as finding and development costs, production information, and net asset value, are based on estimated unaudited financial results for the quarter and year then ended, and are subject to the same limitations as discussed under Forward Looking Information set out below. These estimated amounts may change upon the completion of audited financial statements for the year ended March 31, 2016 and changes could be material.

Special Note Regarding Forward-Looking Information

Certain information regarding Bengal set forth in this document, including estimates of the quantities of the Company's reserves, expected operating activities in the Cooper Basin area, expected financial results for the year ended March 31, 2016 and those matters set forth under the heading "Operations Update", may constitute forward-looking statements under applicable securities laws and necessarily involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Bengal's control, including without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States, Australia and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and the uncertainty of estimates and projections of production, costs and expenses. The recovery and reserve estimates of Bengal's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered.

With respect to forward-looking statements contained in this document, Bengal has made a number of assumptions. The key assumptions underlying the aforementioned forward-looking statements include assumptions regarding (among other things): the impact of increasing competition; the general stability of the economic and political environment in which the Company operates; the timely receipt of any required regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which the Company has an interest in operating the field in a safe, efficient and effective manner; the ability of the Company to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas production. Certain or all of the forgoing assumptions may prove to be untrue.

Bengal's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Additional information on these and other factors that could affect Bengal's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Bengal's website (www.bengalenergy.ca).

The forward-looking statements contained in this document are made as at the date of this news release and Bengal does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOE Equivalency

Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl 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 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 mcf 1 bbl, utilizing a conversion ratio of 6 mcf 1 bbl may be a misleading indication of value.

Internal estimates

Certain information contained herein, such as the financial information based on estimated unaudited financial results for the year ended March 31, 2016, are based on estimated values the Company believes to be reasonable and are subject to the same limitations as discussed under "Special Note Regarding Forward-looking Information" above.

Oil and Gas Advisory

The reserves information contained in this press release has been prepared in accordance with NI 51-101. Complete NI 51- 101 reserves disclosure will be included in Bengal's annual information form for the year ended March 31, 2016 which is expected to be filed in mid-June 2016. Listed below are cautionary statements applicable to our reserves information that are specifically required by NI 51-101:

Selected Definitions

The following terms used in this press release have the meanings set forth below: