Solimar Energy provides the following status update on the Company's joint venture activity in the Kreyenhagen Project area and an operational update on the Company's Kreyenhagen shallow oil field redevelopment project in the San Joaquin Basin, California.

•Execution of a binding Farmout Letter of Intent covering the Company's Kreyenhagen Field Heavy Oil leases. Solimar will maintain operatorship of the project which comprises approximately 12% of the total Kreyenhagen Project acreage. Separate discussions continue with other potential Farmout partners regarding the Company's Kreyenhagen and Monterey shale oil acreage. •Kreyenhagen Field long term production of the lighter gravity, down dip, Temblor oil accumulation at stable, low water cut exceeds modeled expectations and provides increased confidence for steam enhanced production. •Industry interest in the regional Kreyenhagen and Monterey shale oil plays continues to intensify, while California crude oil maintains a pricing advantage to WTI crude pricing; Kreyenhagen Field crude oil priced at $104/bbl in February 2013.

Tags: Solimar Energy Limited