Advantage Oil & Gas Ltd. provide the following updates:

Disposition of Non-Core Assets

• Since the commencement of our non-core asset disposition process, Advantage has closed four separate sales transactions and recently signed a definitive agreement with a fifth party which, on a combined basis, constitute the sale of substantially all of our non-core assets. • Four transactions representing a total of approximately 420 boe/d provided total net cash proceeds of $27.8 million. The first two transactions closed during Q3 2012 for net cash proceeds of $10.9 million, the third transaction closed during Q4 2012 for $3.0 million and the fourth transaction closed during Q1 2013 for $13.9 million. • A definitive agreement (the "Transaction") has been signed with Questfire Energy Corp. (a TSX-V listed company) for the sale of approximately 5,900 boe/d for consideration consisting of $55 million of cash, $27 million Convertible Senior Secured Debentures (the "Debentures") and 1.5 million Class B shares. All customary closing adjustments between the effective date of November 1, 2012 and the closing date will be applied to the Debenture. The Transaction is anticipated to close by the end of Q1 2013 and is subject to satisfaction of customary closing conditions. • The net cash proceeds from all five transactions will be used to reduce outstanding bank indebtedness. • Advantage's credit facility will be revised due to the non-core asset dispositions and is currently under review. Advantage's current credit facilities are $300 million and total bank debt outstanding is anticipated to be approximately$110 to $115 million at the end of Q1 2013 assuming the Transaction closes by then. • Upon closing of the non-core asset dispositions, Advantage's major assets will be our signature Glacier Montney property, with production of 90 to 100 mmcf/d (15,000 to 16,600 boe/d), operating costs of approximately $0.30/mcf ($1.80/boe) and a royalty rate of 5%, and our 45% interest in Longview Oil Corp.

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