NEWS

NOTICE TO SHAREHOLDERS

REVERSE SPLIT OF SHARES: END OF SHAREHOLDERS POSITION ADJUSTMENT PERIOD

Rio de Janeiro, June 10, 2016 - Petro Rio S.A. ("PetroRio" or the "Company") (BM&FBOVESPA: PRIO3, TSX-V: PRJ) hereby announces that, in addition to the Notice to Shareholders released on April 29, 2016, from June 13, 2016 on, the Company’s common shares and Global Depositary Shares ("GDSs") will be traded on a reverse split basis.

The reverse split of PetroRio will comprise the totality of common shares and GDSs issued by the Company at the rate of 5 (five) common shares and 5 (five) GDSs for 1 (one) common share and 1 (one) GDS, respectively, maintaining the same proportion currently in force of 2 (two) GDSs to 1 (one) common share. This transaction was approved in the Company’s Annual and Special Shareholders Meeting held on April 29, 2016.

Any fractional shares resulting from the common shares reverse split will be separated, grouped in whole numbers and sold in auction to be held at BM&FBovespa. The proceeds resulting from the sale of the fractional shares will be made available on behalf of the holders of such fractions. The date of this auction of fractions of shares and the date on which the proceeds resulted from the auction will be available to shareholders will be notified after the expiration of the period for adjustment of shareholding positions, through a Notice to Shareholders to be released.

Any fractional shares resulting from the GDS reverse split will be separated, grouped in whole numbers and sold through a selling agent in Canada. The proceeds resulting from the sale of the fractional shares will be made available on behalf of the holders of such fractions.