Emerald Bay Energy Inc. provided an update on recent events in Guadalupe County, Texas. The company recently drilled the vertical pilot wellbore for Kuhn 1H to confirm the zone of interest and has prepared the wellbore for horizontal drilling operations by setting a silica plug above the kick-off point for the directional tools. The rig used for vertical drilling operations has been moved off the location and the drill site has been prepped for Key Energy Rig #832, which will drill the horizontal portion of Kuhn 1H. It is expected that drilling operations will commence on the horizontal operations within the next two weeks, and are expected to take 10 days to complete.

Emerald Bay Energy Inc. provided an update on recent events in Medina County, Texas. Through its 25% ownership of Production Resources Inc., the company is moving forward with a second multi-well drilling program in the Taylor-Ina field of Medina County, Texas. 12 wells (3 net wells) are planned through second quarter of 2013. JN Wilson A, Well 1B reached total depth on March 12, 2013, and the open-hole log was consistent with expectations and consistent oil 'shows' were observed confirming the target Olmos sands. The wells will be drilled and completed in 4 well packages. Completion operations are scheduled to begin April 8, 2013, with production operations expected to begin the week of April 22, 2013. The drilling locations are considered 'in-fill' and are direct offsets to existing company production.

Emerald Bay Energy Inc. to provide an update on recent events in Guadalupe County, Texas. The company recently received the drilling permit to drill the first horizontal well at Wooden Horse. It is anticipated that drilling operations will commence the first week of April. The Horizontal well (Kuhn 1H) will be drilled utilizing the data acquired through the vertical drilling program on the Kuhn lease. The roads and drilling pad site have been constructed to the drilling location. Electricity installations are underway to accommodate the needs of both the electric submersible and centrifugal pumping systems utilized during production operations.