Tamarack Valley Energy Ltd. provide the following operational updates. Third quarter production increased 27% from the previous quarter to approximately 1,100 boe/d of which approximately 42% is oil and natural gas liquids. Tamarack expects third quarter cash flow from operations to increase approximately 34%-36% from the second quarter, with netbacks averaging approximately $36-$37 per boe. Tamarack's total debt as at September 30, 2011 was approximately $6.0 million which equates to less than 0.6 times debt to annualized estimated third quarter cash flow. Tamarack's strong balance sheet enables the Company to continue to deliver organic growth on an absolute and per share basis.

Buck Lake Update and Drilling Outlook

Tamarack's 75% working interest Buck Lake well, located at 3-35-46-6 W5M, was completed in mid- August 2011 with an 18-stage oil fracture stimulation. This well recovered all 7,787 bbls of load oil over an 11 day period and was subsequently tied-in to the Keyera Minnehik-Buck Lake gas plant in late September. The well averaged 1,239 boe/d, consisting of 450 bopd (338 net) of oil and natural gas liquids and 4.73 mmcf/d (3.6 net) of natural gas over a 14 day test. The well is currently producing 983 boe/d consisting of 300 bopd (225 net) of oil and natural gas liquids and 4.1 mmcf/d (3.1 net) of natural gas.

Tamarack's third well in the Buck Lake area, located at 4-34-46-6 W5M (75% WI), was spudded on September 20, 2011 and frac'd on October 18, 2011. This well has recovered approximately 90% of its load oil to date and testing results will be released in November 2011. This well is exhibiting a higher oil rate and less natural gas production than the 3-35 well at this point during the load recovery.

Tamarack is very excited about the Buck Lake well results and believes shareholders will benefit from excellent production and cash flow in this newly de-risked core area. A development plan will be contained in an updated corporate presentation on the company's website.

Saskatchewan Heavy Oil

Tamarack added an additional 10.4 net sections of undeveloped land to its 37.3 net sections of land secured in June 2011. Tamarack has done this by adding a second Saskatchewan First Nations deal as well as the addition of Crown and freehold lands. This new core area gives the Company the ability to add low cost production and reserves and provides diversity to Tamarack's portfolio which is predominantly high impact, light oil assets. This flexibility compliments Tamarack's overall oil play strategy by decreasing finding costs, increasing rate of return and managing risk by drilling wells with lower per well costs. Tamarack has identified 22 exploration and development drilling locations along with 46 un-risked contingent locations. The Company has also drilled two net heavy oil wells in October, with completions expected by early November. Two to four additional locations are expected to be drilled by year end.

Increased Credit Facility

Tamarack is also pleased to announce its' credit facilities were reviewed and as a result, the revolving operating demand loan was increased to $12.0 million from $6.5 million and the development loan was increased to $3.0 million from $2.0 million. The next credit facility review is scheduled for March 31, 2012.

Q4 Production Forecast

In conjunction with the success experienced at Lochend, Garrington and the recently drilled Buck Lake 3- 35 well, fourth quarter production from existing producing wells will be between 1,400 and 1,500 boe/d. In addition, the Company expects its' fourth quarter production average will exceed that range as a result of the production adds from the Buck Lake 4-34 well and the two recently drilled heavy oil wells. The Company will update fourth quarter production guidance with the new well results in November. Tamarack also anticipates it will exit 2011 with total debt of less than one times annualized cash flow.

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