Yoho Resources Inc. provide an update of drilling and completion operations at Kaybob, Alberta and at Nig, British Columbia.

Kaybob, Alberta

At Kaybob, Yoho operated the drilling and completion of the Company's fourth horizontal well (50% working interest) targeting the Devonian Duvernay shale formation under an existing joint venture with Celtic Exploration Ltd. ("Celtic"). The well located at 13-22-62-21 W5 was drilled to a measured depth of 4,861 metres. The horizontal lateral was 1,460 metres in length within the Duvernay shale formation. The well was drilled and cased over 39 days at a cost of approximately $4.9 million. Well completion operations commenced in January 2012 using a "perf and plug" completion method. The well was fracture stimulated in 10 stages with 40 perf clusters using 1,630 tonnes of sand and 105,150 barrels (16,717 m3) of slick water. The total estimated cost of the completion is approximately $8.6 million. As a result, the total cost to drill, complete and test the well is estimated to be approximately $13.5 million. Future well costs are anticipated to be reduced substantially under full development and multi-well pad operations.

During clean-up, the well flowed at rates of up to 6.8 MMcf per day up 7" casing after which the well was shut-in to run production tubing. The well was then tested up tubing at various gas rates between 6.0 to 7.7 MMcf per day at flowing tubing pressures of 10 to 15 MPa (1,450 to 2,174 psig). At the end of the 11 day flow period, in addition to the natural gas production, the well was producing field condensate at a rate of 658 barrels per day (109 barrels per MMcf of raw gas). The well will be shut-in for approximately two months to obtain pressure information and to allow the completion water to absorb into the formation. At the end of the flow period, approximately 24,230 barrels (3,852 m3) (23%) of load water had been recovered. As part of Yoho's fiscal 2012 resource delineation plans, the 13-22 well was drilled over 10 miles to the north-west of the Company's existing producing Duvernay horizontal wells. The results from this well significantly extend the tested areal extent of Duvernay potential over Yoho's lands.

Also in the Kaybob area, Yoho is participating in the drilling of a fifth horizontal well targeting the Devonian Duvernay shale formation at a one-third working interest. The well, located at 13-02-60-20 W5, is currently drilling and is expected to reach total depth by the end of February 2012. Well completion operations are anticipated to commence during March 2012 with a production test to follow completion of the well.

Nig, British Columbia

In November 2011, Yoho, with partner Progress Energy Resources Corp. (each with a 50% working interest), drilled the b-16-H/94-H-4 horizontal gas well targeting the Upper Montney formation. The well was drilled in the middle part of Yoho's land block. In December 2011, the well was completed in the horizontal section with a 6 stage energized slickwater fracture stimulation using a perf and plug completion method. The well was tested up tubing over 4 days at a rate of 3.5 MMcf per day with free condensate yields of approximately 42 barrels per day. The well is currently shut-in for pressure build-up. At the end of the production test, approximately 4,760 barrels (757 m3) (17.6%) of completion water had been recovered. The Company estimates that liquids production with the natural gas is expected to be in excess of 25 barrels per MMcf, with approximately 50% of the liquids being condensate. Yoho plans to tie-in the well and anticipates having it on production during March 2012.

In December, 2011 Yoho operated the drilling and completion of the Company's fourth horizontal well (50% working interest) at Nig. This well at c-29-A/94-H-4 was drilled to a total measured depth of 2,830 metres with a horizontal lateral section of 940 metres in length within the Lower Montney formation. Completion operations on this well are currently ongoing.

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