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|   |        | CAWLEY, GILLESPIE & ASSOCIATES, INC.Petroleum ConsultantsTexas Registered Engineering Firm F-693 /s/ J. Zane Meekins, P.E. J. ZANE MEEKINS, P.E. EXECUTIVE VICE PRESIDENT |
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|   | Re:                | Evaluation Summary PetroShare Corporation Interests Moffat County, ColoradoProved Developed Producing ReservesAs of January 1, 2015 |
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|   |                                                                                |                                                                                                                                               |

|                    |   |
|-------------------------|--------|
|                    |        |  |  |  |  |  | ProvedDevelopedProducing |  |
| Net Reserves            |        |  |  |  |  |  |  |  |
| Oil                     |   |   | - Mbbl |   |   |   | 0.2 |   |
| Gas                     |   |   |  - MMcf |   |   |   | 0.0 |   |
| Revenue                 |   |
| Oil                     |   |   |  M$ |   |   |   | 13.4 |   |
| Gas                     |   |   |  M$ |   |   |   | 0.0 |   |
| Severance Taxes         |   |   |  M$ |   |   |   | 0.8 |   |
| Operating Expenses      |   |   |  M$ |   |   |   | 7.8 |   |
| Investments             |   |   |  M$ |   |   |   | 0.0 |   |
| Operating Income (BFIT) |   |   |  M$ |   |   |   | 4.8 |   |
| Discounted at 10.0%     |   |   |  M$ |   |   |   | 4.7 |   |

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| (1) (11) | Calendar or Fiscal years ending on effective date. |
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| (2) (3) | Gross Production (8/8th) for the years which are economical. These are expressed as thousands of barrels (Mbbl) and millions of cubic feet (MMcf) of gas at standard conditions. Total future production, cumulative production to effective date and ultimate recovery at the effective date are shown following the annual forecasts. |
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|  | (4) (5) | Net Production accruable to evaluated interest is calculated by multiplying the revenue interest times the gross production. These values take into account changes in interest and gas shrinkage. |
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| (6) | Average (volume weighted) gross liquid price per barrel before deducting production-severance taxes. |
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| (7) | Average (volume weighted) gross gas price per Mcf before deducting production-severance taxes. |
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| (8) | Revenue derived from oil sales -- column (4) times column (6). |
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| (9) | Revenue derived from gas sales -- column (5) times column (7). |
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| (10) | Total Revenue -- column (8) plus column (9) plus other miscellaneous revenue. |
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| (12) | Production-severance taxes deducted from gross oil and gas revenue. |
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| (13) | Ad valorem taxes. |
|------|------------------------|

| (14) | Average gross wells. |
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| (15) | Average net wells are gross wells times working interest. |
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| (16) | Operating Expenses are direct operating expenses to the evaluated working interest, but may include items noted below. |
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| (17) | Other Deductions may include operator's overhead, compression-gathering expenses, transportation costs, water disposal costs and net profits burdens. These are the share of costs payable by the evaluated expense interests and take into account any changes in interests. |
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| (18) | Investments, if any, include work-overs, future drilling costs, pumping units, etc. and may be included either tangible or intangible or both, and the costs for plugging and the salvage value of equipment at abandonment may be shown as negative investments at end of life. |
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|  | (19) (20) | Future Net Cash Flow is column (10) less columns (12), (13), (16), (17) and (18).  The data in column (19) are accumulated in column (20). Federal income taxes have not been considered. |
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|  | (21) | Cumulative Discounted Cash Flow is calculated by discounting cash flows at specified rates. |
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|  | Life | • The economic life of the appraised property is noted below the discounted cash flow profile. |
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|  | Interests | •  Initial and final expense and revenue interests are shown below columns (18-19). |
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|  | Profile | •  The cash flow discounted at six different rates are shown at the bottom of columns (20-21). Interest has been compounded once per year assuming income or payments are received at mid-year. |
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|  | Footnotes | • The regulatory commission identification number, a brief location description, reserve evaluation method and other pertinent comments may be shown in the left-hand footnotes. Well type is noted in lower right- hand corner of table. |
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