In February 2016, the Company announced that the Company has made a new oil discovery in three separate potential pay zones at its 100% owned 9A-5-44-8W2 well (“9A-5”) on its Bannock Creek project located near the town of Hudson Bay in northeast Saskatchewan. The discovery has been made in conjunction with technical teams from North Rim Exploration Ltd. and Axiom Exploration Ltd., both of Saskatoon, Saskatchewan. Drilling of the 9A-5 well had commenced on January 7th and had reached a total depth of 583 meters before technical difficulties related to wellbore stability and lost circulation were encountered. In consultation with its technical team, the Company elected to redesign the casing configuration and drill process. The second well was spudded on January 29th and reached a target depth of 740 meters in 8 days without incident, including 1.5 days to core and log. A total of 27 meters of core was cut with full recovery through all target zones. The Company is very pleased to announce that within the target Herald and Yeoman formations, three separate intercepts displayed pronounced and uniform oil staining and fluorescence under black light. These intercepts were subsequently cross-referenced to match down-hole resistivity logs and porosity logs greater than 12%. The discovery was made in three separate formations: the Herald, the Upper Yeoman and the Lower Yeoman for a cumulative potential reservoir thickness of 8 meters. The presence of these stacked pay zones supports the Company’s exploration model of a stacked target, 4-way closed anticlinal potential oil reservoir. Drill core has been sent to Core Labs of Estevan, Saskatchewan where a full analysis of the discovery, including permeability, porosity, oil saturation and API, will determine a comprehensive completions program. Results are expected by mid-February following which the Company will announce a completions plan that will include test production and an additional well site to further assess the 480-acre anticlinal target which was the focus of this drill program. This additional well will aid the Company in evaluating future vertical and/or horizontal wells in order to maximize the exploitation of known reservoirs, as well as to further assess additional undrilled targets on the 120,000 acre Bannock Creek project. Saturn identified the well location from a 2D seismic program, which was designed to identify and confirm closures for potential light oil traps. The closure of this structure compared very favourably with existing producing light oil pools to the south of the Bannock Creek project and provided validation of Saturn’s exploration model.

In February 2016, the Company received oil saturation and porosity results from Core Labs in Estevan, Saskatchewan, from drill core taken from the Company’s 9B-5 wildcat well at the Bannock Creek property in northeast Saskatchewan, near the town of Hudson Bay. The Company has identified a 3.5 meter section of core as its current primary target for completions. Results from the core analysis reported an average oil saturation of 57% throughout the 3.5 meter section, with the top 1.7 meters averaging 60% oil saturation. Complementary to the oil saturations, porosity values ranged from 12% to 18% through the primary target zone. While the company had anticipated high porosity from the dolomitic limestone frequently encountered in this part of the Williston Basin, oil saturation percentages exceeded expectations for development. Permeability and oil API of the target zone are still being analyzed. Drill core analysis is proceeding methodically so as to properly and accurately assess the characteristics of the reservoir for completions. The Company’s technical team are to design an effective completions plan to maximize potential economics. The Company expects the final core results before the end of February, subsequent to which Saturn intends to complete and flow-test the well. The Company also announced that Savanna 440, which completed the 9B-5 well, will be racked near the Bannock Creek property in Tisdale, Saskatchewan. The Company is awaiting final core analysis and flow-test results at which time it will apply for a license and spud an additional 100% working interest vertical well at Bannock Creek. The well will further delineate the current target zone and core additional target zones identified in the open hole logs.

In March 2016, the Company reported that completions have begun at its Bannock Creek project in northeastern Saskatchewan where the Company intersected three potential reservoirs within the Red River Formations. A work over rig has been mobilized to the well site and operations are expected to begin. The completions program is being run in conjunction with Axiom Explorations Ltd. of Saskatoon, Saskatchewan. The completions program will perforate all three potential oil pay zones intersected in well 9B-5. The pay zones represent a total cumulative thickness of 8 meters and are situated within the Herald, Upper Yeoman and Lower Yeoman formations, all wellknown historic oil producers throughout the Williston Basin. The completions program will flow-test these formations and form the basis of a comprehensive development plan for the Bannock Creek project intended to maximize potential economics

In March 2016, the Company announced that the completions program at its Bannock Creek project has been finalized, a well head has been secured, a packer has been set at the top of the tested zones and that the well has been shut in. All zones of interest were tested and the results of the completions program are being analyzed to determine the most efficient production methodology for the 9B-5 well. The Company also announces that it will adhere to a “tight-hole status” of the 9B-5 well as per Provincial Regulations. Commiserate with the tight-hole status of the well, the Company’s “black out status” will also remain in effect. The black out status prohibits insiders of the Company from trading in the shares of the Company. Due to local ground conditions, road bans are now effective in the area of the 9B-5 well. The road bans are expected to be in effect for approximately 30 days.