• A first quarter 2013 production average of 1,303 boe per day a 17 percent increase over the same quarter in 2012, the second highest quarterly average in the Compay’s history,
• A first quarter 2013 Net Back of $53.71 a 4 percent increase over the same quarter in 2012, the third highest quarterly average in the Company’s history while commodity prices where only the fifth highest in the most recent eight months,
• A first quarter 2013 cash flow from operations of $5,024,000 a 22 percent increase over the same quarter in 2012, the second highest quarterly average in the Company’s history,
• A 20% reduction in the debt to cash flow, excluding convertible debentures due March 31, 2017, to 2.0:1 at March 31, 2013 from the 2.5:1 at December 31, 2012,
• Drilled, completed and tied-in 1.0 gross (0.80 net wells) development well (15-25) during the first quarter of 2013,
• Drilled 1.0 gross (0.80 net wells) exploration well (11-31) during the first quarter of 2013, further refining and correlating the 2012 3D Seismic program,
• The 11-31 well was cased through the Wabamun and the 11.5 meter thick zone was perforated and hydrocarbon fracture stimulated and swab tested, recovering first frac oil and then transitioning to light oil and formation water, and
• Completed the Second Derivative analysis of the 2012 3D Seismic program, with the interpreted channel anomaly showing a remarkable correlation to the productive and non-productive well penetrations in the North Waterflood Area.

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• A 12 percent increase in the fourth quarter 2012 production average to 1,106 boe per day from the third quarter 2012 production average of 991 boe per day,
• Spud 11 gross (7.61 net) wells with 6 gross (4.30 net) wells being placed on production, 4 gross (2.53 net) service wells being brought online and 2 gross (1.44 net) wells in various stages of completion,
• Completed and interpreted a 51 section 3D Seismic program identifying approximately 20 Tier I, 12 Tier II and 46 Tier III locations on nine Gilwood channel trends,
• Achieved additional 3D Seismic drilling success culminating in a fourth quarter 2012 production average of 609 boe per day from the north Gilwood seismic channel,
• Completed upgrades at the Marten Mountain pipeline and battery facility alleviating certain constraints and eliminating certain operational expenses, and
• Acquired 25,600 gross (20,851 net) acres of undeveloped land in Mitsue, Alberta.

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•  January 28 to February 3, 2013 weekly Field Production Average of 1,409 BOEPD
• December 31, 2012 proved plus probable net present value per share of $1.69 (Before Tax, discounted at 10%) based on 66.6 million fully diluted shares
• December 31, 2012 company working interest reserves are 2,569.4 Mboe total proved, a 25% increase from December 31, 2011 (a 38% increase when factoring in the Jayar September 30, 2012 disposition), and 4,629.1 Mboe proved plus probable, a 1% increase from December 31, 2011 (an 8% increase when factoring in the Jayar September 30, 2012 disposition)
• The December 31, 2012 net present value of the proved plus probable reserves decreased 33% from December 31, 2011 to $112.5 million, discounted at 10 percent, forecast prices, before tax. This is reflective of the 35% decrease in the proved plus probable Unit Value received at December 31, 2012 of $36.09 from the December 31, 2011 Unit Value received of $55.21, a direct result of the change in the forecast pricing utilized by Deloitte in the December 31, 2012 reserve report from the December 31, 2011 reserve report.
• Reserve life index of 6.5 years total proved and 11.7 years proved plus probable based on the 2012 annual average production rate and year-end reserves, this represents an increase of 33% in the total proved reserve life index and a 6% increase in the proved plus probable reserve life index from December 31, 2011
• 2013 Capital Budget of $29.4 million
• Exall expects to drill up to 13.0 gross (9.40 net) wells during 2013, with two wells (1.51 net) having been spud so far in 2013
• Exall expects to generate a 2013 Cash Flow of $29.4 million and a 2013 average production rate of 1,500 – 1,700 boepd

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• Exall’s current average daily production for December is approximately 1,330 boepd, an increase of 42% over the September average,
• Two wells were drilled between the Central Waterflood (“WF”) and the North WF areas during Q4 with production to start in late December,
• Ongoing efforts to address production issues have been successful in the various WF areas,
• Current production from the South WF area is 418 boepd (302 boepd net), an increase of 24% from 340 boepd (243 boepd net) through November,
• The Central WF continues to improve as the result of well optimization and the installation of an Electric Submersible Pump (ESP); it is currently producing 657 boepd (458 boepd net), an increase of 104% over the Q3 average,
• A water source well was drilled, completed and equipped during Q4 and injection of water has begun in the North WF Approval area,
• Optimization efforts in the North WF and the addition of two producing wells has increased production to an average of 818 boepd (557 boepd net) during the first week of December, an increase of 120% over August 2012,

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• Current production estimate is 1,050 boepd,
• The second well of the Summer-Fall program was placed on production at a stable rate of 175 bopd (128 bopd net) through the Exall gathering and treating facilities,
• The third well of the program was drilled, completed as a slant-hole and production tested. The well produced 500 barrels of clean oil during the last 24 hours of the test. The well was placed on production at a stable rate of 260 bopd (185 bopd net) through the Exall gathering and treating facilities,
• The next two wells, the fourth and fifth of the 2012 Summer-Fall drilling program were drilled during October and are currently undergoing completion and testing procedures,
• Exall is continuing to test options for facilities alterations to remedy high producing well backpressure in the North Channel wells. Pipeline pressure on the North leg of the gathering system is high due to the 220 meter elevation change along the route over Marten Mountain. The Company believes that the back-pressure is inhibiting maximum production from the wells in that area and will be taking appropriate measures to remedy the problem,
• Disposal of produced water into the Water Disposal Well drilled and completed by Exall during Q1 is now pipelined from the battery, which is expected to reduce trucking and disposal costs by $50,000 per month net to Exall,
• Field construction of the main power line by ATCO and installation of distribution systems on the wellsites has been completed with substantial anticipated savings in generator rental and fuel costs, expected to be approximately $100,000 per month net to Exall, and
• Exall disposed of its 14.5% non-operating working interest in its Jayar, Alberta property to a private company effective September 30, 2012. The Acquirer paid cash proceeds to Exall of $1,800,000 on closing and will forward an additional $240,000 on November 15, 2012.

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• Current production estimate for Q3 is 1,100 boepd,
• The second well of the Summer-Fall program has been placed on production at a stable rate of 175 bopd (128 bopd net) through the Exall gathering and treating facilities,
• The third well of the program has been drilled, completed as a slant-hole and production tested. The well produced 500 barrels of clean oil during the last 24 hours of the test. The well is currently being equipped and tied in with an expected production start of mid-week,
• The next well, the fourth of the 2012 Summer-Fall drilling program is scheduled to spud the first week of October,
• Interpretation of the 56 section 3D seismic program in the Mitsue area acquired in the first quarter of 2012 has identified nine Tier I and II Gilwood channel locations in the northern portion of the coverage which Exall is in the process of permitting surface access for drilling during the coming year. Six of the locations are classified as Exploratory,
• Four enhanced recovery applications submitted to the ERCB in 2012 have been approved, three are active and on the fourth the conversion of a currently shut in oilwell to injection well and drilling of the water source well is scheduled for October. The applications group the approvals into three project areas which the Company terms the South, Central and North Waterfloods,
• The “Central Waterflood Area”, which includes the first three wells drilled in the Marten Mountain area, continues to perform well, having produced over 820 mboe to date and it continues to produce 190 to 240 boepd from two producing wells and one water injector,
• Although the “South Marten Waterflood Area” has shown positive pressure response and increased well production, it continues to under-perform, in terms of well responses and early water production. One well has been identified for a water shutoff procedure which is scheduled for early October, and a high-water cut well has been shut in to direct energy to oil-producing areas in the reservoir,
• Exall is continuing to look at options for facilities alterations to remedy high producing well backpressure in the North Channel wells. Pipeline pressure on the North leg of the gathering system is high due to the 220 meter elevation change along the route over Marten Mountain. The Company believes that the back-pressure is inhibiting maximum production from the wells in that area and will be taking appropriate measures to remedy the problem,
• After considerable weather delays due to heavy summer rains, the Exall North Road, accessing the new North Waterflood area wells and new drilling locations has been completed, allowing all weather access to the new area,
• Disposal of produced water into the Water Disposal Well drilled and completed by Exall during Q1 is now pipelined from the battery, which is expected to reduce trucking and disposal costs by $50,000 per month net to Exall,
• Field construction of the main power line by ATCO and installation of distribution systems on the wellsites has been completed with substantial anticipated savings in generator rental and fuel costs, expected to be approximately $100,000 per month net to Exall,

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• Interpretation of the 56 section 3D seismic program in the Mitsue area acquired in the first quarter of 2012 is progressing with initial indications of 20 Tier I, 12 Tier II and 46 Tier III locations identified on nine Gilwood channel trends (a description of Tier criteria is attached in the main body of this press release),
• Four enhanced recovery applications submitted to the ERCB in 2012 have been approved to date with one new well active, starting injection April 1, 2012,
• Two additional water injection wells in projects which had previously been approved by the ERCB were given Directive 51 Operational Approval to initiate injection, effective June 6, 2012 with injection commencing immediately thereafter,
• Injection of produced water into the Water Disposal Well drilled and completed by Exall during Q1 has begun on a temporary basis and upon completion of the short tie-in to the battery is expected to reduce trucking and disposal costs by $50,000 per month net to Exall,
• Field construction of the main power line by ATCO has been completed with installation of distribution system ongoing with substantial savings in rental and fuel costs upon completion, expected to be approximately $100,000 per month net to Exall,
• The first well of the summer-fall program has been successfully drilled horizontally, completed and placed on production at the rate of 275 bopd (198 bopd net) through the Exall gathering and treating facilities, and
• The second well of the program has been drilled horizontally into over 200 meters of excellent reservoir quality sand and cased, and is waiting on completion and testing.

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• Current production of 1,400 boepd, an 18% percent increase over May average production,
• Interpretation of the 56 section 3D seismic program in the Mitsue area acquired in the first quarter of 2012 is progressing with initial indications of 20 Tier I, 12 Tier II and 46 Tier III locations identified on nine Gilwood channel trends (a description of Tier criteria is attached in the main body of this press release),
• Four enhanced recovery applications submitted to the ERCB in 2012 have been approved to date and one new well active, starting injection April 1, 2012,
• Two additional water injection wells in projects which had previously been approved by the ERCB were given Directive 51 Operational Approval to initiate injection, effective June 6, 2012 with injection commencing immediately thereafter,
• Production from Exall’s closest offsetting producer to the first activated water injection well continues to improve, from 50 boe per day to 175 boe per day in response to water injection over a period of two months,
• Injection of produced water into the Water Disposal Well drilled and completed by Exall during Q1 has begun on a temporary basis and upon completion of the short tie-in to the battery is expected to reduce trucking and disposal costs by $50,000 per month net to Exall,
• Field construction of the main power line by ATCO has been completed with installation of distribution system ongoing with substantial savings in rental and fuel costs upon completion, expected to be approximately $100,000 per month net to Exall,
• Drilling has begun on the first well of the summer-fall program

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