feb operational update

FEBRUARY 2012 OPERATIONAL UPDATE

Early results from Fiesta wells confirm viability of Wolfcamp oil production

Highlights from Molopo’s Operational activities during February 2012 include:

Saskatchewan, Canada

• The Estevan 9-22 well had encouraging oil and gas shows in the Midale and Alida intervals

• Two wells flowing back oil with IP rates expected in March

• Two wells undergoing completion operations

Texas, USA

• Molopo’s first three Wolfcamp Horizontal wells are showing positive results on clean-up with maximum oil production rates to date for the three wells being between 50 and 300 bopd per well. Load recovery on the wells is currently between 20% and 32% of total fluid injected

• Early flow results have confirmed the viability of oil production from the Wolfcamp interval and the Company is commencing plans for additional drilling locations in 2012

Oil sales

• Corporate oil sales for the month of January 2012 were 162 bopd (31 day average, net to Molopo), up 30% from the December 2011 average of 125 bopd