Solimar Energy Limited provide an update regarding the Company's 100% owned and operated Kreyenhagen oil field development project located in the San Joaquin Basin, California.

Kreyenhagen Project - Temblor oil reservoir

Kreyenhagen is a multi-faceted oil project on the western side of the San Joaquin Basin that contains a partially developed heavy oil (13° to 18° API gravity) field in a shallow, high quality sandstone reservoir known as the Temblor Sandstone.

Unrisked in place oil resources totalling 47.9 MMBBLS (Best Case) and 79.1MMBBLS (High Case)* net to the Company's working interest have been independently assessed and detailed in releases made by the Company on November 18 and 22, 2011.

The oil is contained in an approximately 200 feet thick upper sandstone pay zone overlain by the Monterey Shale (McClure Shale member) and with a base seal provided by an intra-Temblor Sandstone shaley layer. The oil reservoir outcrops along the west side of the field, where it is believed to be capped by a biodegraded tar mat then plunges steeply underground to the east. The oil column within the structure is 1,200 feet thick based on existing well control. Due to the shallow depth of the oil reservoir (less than 1,500 feet in the appraised part of the field) future development drilling costs are expected to be low. Some 22 historic, vertical wells have been drilled into the field that were flowed at unstimulated, "cold flow" oil rates of between 1-21 bopd using standard type beam pumps.

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