Madalena Ventures Inc. provides information on the company' unconventional shale resources on its three land blocks within the Neuquen basin, Argentina. All of the company's international properties, which are located within the Neuquen basin, Argentina, were reviewed in the Resource Report although no all of the potential resources and formations were evaluated. All values disclosed herein are net to Madalena's interest. Summary results of the independent evaluation completed by Ryder Scott for all three blocks held by Madalena. Best Case P50 total petroleum initially in place ("PIIP") of 34.8 billion barrels of oil equivalent ("boe") (51% crude oil and natural gas liquids ("NGLs")), comprised of: Best Case P50 discovered PIIP ("DPIIP") of 257.4 million boe (95% crude oil and NGLs); and Best Case P50 undiscovered PIIP ("UPIIP") of 34.6 billion boe (50% crude oil and NGLs); Best case P50 contingent plus prospective recoverable resources of 2.9 billion boe (45% crude oil and NGLs), comprised of: Best case P50 contingent recoverable resources of 19.4 million boe (95% crude oil and NGLs); and Best case P50 prospective recoverable resources of 2.8 billion boe (45% crude oil and NGLs).

Madalena Ventures Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported oil and gas revenue of CAD 3,011,804 compared to CAD 609,340 reported a year ago. Net loss was CAD 5,075,119 or CAD 0.02 per basic and diluted share compared to CAD 1,585,520 or CAD 0.01 per basic and diluted share reported a year ago. Capital expenditures were CAD 6,309,521 compared to CAD 4,082,646 reported a year ago. For the year, the company reported oil and gas revenue of CAD 5,545,294 compared to CAD 2,598,503 reported a year ago. Net loss was CAD 8,865,201 or CAD 0.03 per basic and diluted share compared to CAD 16,136,543 or CAD 0.06 per basic and diluted share reported a year ago. Capital expenditures were CAD 22,851,417 compared to CAD 20,034,093 reported a year ago. The company proved plus probable ("P+P") reserves of 3.894 MMboe (46% crude oil and natural gas liquids) representing a 149% increase from Madalena's 2011 year end P+P reserves; 62% of P+P reserves are categorized as proved reserves; A P+P reserve life index of 13.2 years and a proven reserve life index of 8.2 years, based on December 2012 actual production of 809 boe/d; Reserve net present value of P+P reserves before tax (discounted at 10%) of CAD 33.7 million; Achieved finding, development & acquisition ("FD&A") costs on its Canadian assets of CAD 14.78/boe of P+P reserves, or CAD 23.47/boe of proved reserves, both of which include the change in future development costs. The company's current productive capability is approximately 2,000 boe/d (44% oil and natural gas liquids, representing a 900% increase from the company's October 2012 production level. The company has a current base production of approximately 1,200 boe/d (43% oil & NGLs) with in excess of 1,200 boe/d of tested volumes behind pipe from recently completed horizontal development wells in its Greater Paddle River area of western Canada. The company anticipates that these behind pipe production volumes will be brought on-stream during the second quarter of 2013.

Madalena Ventures Inc. provided operational updates across its Western Canadian ("domestic") and International assets. With the focus on production growth to start 2013, Madalena's productive capability is approximately 2,000 boe/d (44% oil and natural gas liquids ("NGLs")), representing a 900% increase from the Company's October 2012 production level. The Company has a current base production of approximately 1,200 boe/d (43% oil & NGLs) with in excess of 1,200 boe/d of tested volumes behind pipe from recently completed Ostracod horizontal development wells. At Paddle River, fracing and testing operations have been completed at Madalena's two recently drilled 100% working interest Ostracod horizontal oil wells. The first well reached a total depth of 2,776 metres, including a 1,056 metre horizontal trajectory. Completion operations included a 13-stage multi-frac program where a total of 6,094 barrels of water-based load fluid was pumped. The well was subsequently production tested for three days during which time the well flowed continuously and recovered a total of 4,633 barrels of load fluid (76%). During the three day test, the well flowed 37deg API oil and gas at an average rate of 707 boe/d (39% oil). Flowing pressures remained relatively stable at approximately 1,400 kPa during the final 24 hours of the test. After accounting for shrinkage and NGLs recovery at the local production facility, sales production over the final 24 hours would equate to approximately 719 boe/d (46% oil & NGLs). The second well reached a total depth of 2,880 metres, including a 1,140 metre horizontal trajectory. Completion operations included a 14-stage multi-frac program where a total of 6,320 barrels of water-based load fluid was pumped. The well was subsequently production tested for three days during which time the well flowed continuously and recovered a total of 2,430 barrels of load fluid (38%). During the three day test, the well flowed 33deg API oil and gas at an average rate of 566 boe/d (24% oil). Flowing pressures remained relatively stable at approximately 5,400 kPa during the final 24 hours of the test. After accounting for shrinkage and NGLs recovery at the local production facility, sales production over the final 24 hours would equate to approximately 547 boe/d (38% oil & NGLs). Both wells are currently shut-in and operations to equip them for production and tie-in the solution gas to existing Madalena facilities are ongoing. The Company anticipates that these two horizontal wells will be brought on production during the second quarter of 2013. While Madalena continues to be very encouraged by the initial results from these horizontal wells, it cautions that these test results are not indicative of their long-term performance. Ongoing technical work continues to improve the Company's understanding of its Paddle River Ostracod oil play and the ultimate potential of the assets. Madalena controls approximately 55 net sections of land and a significant inventory of drill-ready horizontal locations on the Ostracod oil trend in the Paddle River area. The company plans to drill additional horizontal wells on this play throughout the remainder of 2013, focusing on increasing production and reserves.