Caracal Energy Inc. provides an operational update on its activities in Chad, which includes announcing a new discovery at Krim and the spudding of the Bitanda exploration well.

Executive Summary

◾ Production ramped up significantly, delivering in excess of 11,000 gross barrels oil per day ("bopd") ◾ On track to achieve first oil lift in Q1 2014 and significant production increases in the coming months ◾ Mangara-5 development well delivered highest test flow rates seen on the Mangara field; completed as a producer. Maximum combined production rate for the Cretaceous C and E sands exceeded 5,000 bopd ◾ Krim-1 Cretaceous E sands flow tested at up to 2,580 bopd ◾ Successful test of Krim's Cretaceous C and D sands should deliver an increase in reserves ◾ Bitanda exploration well spudded; targeting gross unrisked prospective resource of 277.2 - 648.3 million barrels ("mmbbl") ◾ Mobilization underway to increase drilling rig count from 2 to 6 rigs by end 2014 ◾ 2014 exploration program will target 1 billion barrels of gross unrisked prospective resources

Tags: Caracal Energy Inc.