Manitok Energy Inc. provides the following operational update and the financial results as at and for the three months ended September 30, 2010.

Operational Update Manitok provides an update of its previously announced five-well heavy oil program at Swimming in east-central Alberta, 60 miles west of Lloydminster. Manitok expected to achieve an overall production rate in the order of 150 bbls/d from these wells. While still very early in the production phase of these wells, management believes the five wells will meet or exceed this target in the coming months. Manitok completed the drilling portion of the program on budget with pre-spud drilling estimates. Total project costs are expected to be within 10% of the total estimated costs. Most of the small overage was due to higher completion costs which resulted from the combination of wet weather, increased competition for required services in the area and much higher than expected levels of initial sand production. The primary target of these wells was a lower Mannville reservoir (Cummings), discovered by Manitok in 2007, during initial drilling of its heavy oil properties. At present, four of the five new wells are producing from the Cummings reservoir. The fifth well encountered two additional heavy oil zones (Sparky and Colony). Manitok has completed the Sparky and is currently producing the zone to assess the reservoir performance. While the initial results are encouraging, Manitok will monitor the production performance to determine whether this zone will be the target of further vertical, or possibly horizontal, development drilling. All nine Manitok well bores at Swimming have encountered the Sparky zone with varying degrees of reservoir thickness and quality. Although the shallower Colony zone has not been tested, log characteristics are extremely encouraging. Manitok expects to test the Colony in the first quarter of 2011. The Colony zone was intersected by three of the five new wells, and it provides considerable upside to the property. The drilling results not only provide Manitok with cash flow that will exceed its monthly G&A costs, which was the primary purpose of the program, it has also served to provide new avenues of growth on our lands through the exploitation of the additional zones encountered.

Manitok continued to expand its heavy oil operations in the area over the quarter. In addition to acquiring 1,920 acres, with 100% working interest ("WI"), Manitok is near completion of a $400,000 2D and 3D seismic program to evaluate new and existing oil pools on its acreage. The most prospective of these pools will be tested in follow-up phases of development and exploration drilling in 2011. Of the newly acquired acreage, 640 acres (100% WI) directly offsets the above-mentioned successful drilling program and our current 3D seismic data overlaps it to some degree. With 15 development locations on its lands and the possibility of adding more with the newly acquired seismic data, Manitok is confident that, with enough capital, it can add up to 1,000 bbls/d of production during the next several years in east-central Alberta.

Manitok's second focus area is the Alberta foothills. Within the last month, Manitok has added Robert Quartero to our technical team. He managed the very successful foothills exploration team at Talisman Energy for more than a decade, achieving above average growth rates in production and reserves. During his tenure at Talisman, Mr. Quartero tested more than 200 prospects in the foothills and discovered approximately 2 Tcf of natural gas reserves in a variety of structured plays. He pioneered horizontal drilling concepts in the Alberta foothills in the 1990s which provided Talisman a significant advantage over its competitors. As a foothills District Manager at Talisman, he assembled and led a world class technical team. Mr. Quartero's technical expertise and extensive knowledge base in the specialized foothills play type will certainly benefit Manitok in executing its business plan.

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