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BlackPearl Sees Dramatic Increase in Reserves Through Onion Lake Project

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BlackPearl Resources Inc. has announce the results of its 2013 year-end oil and gas reserves evaluation, contingent resource evaluation and to provide an operations update on the Company's current activities.

Highlights:

• 302% increase in proved reserves to 64 million barrels of oil equivalent, primarily attributable to the initial recognition of reserves for the Onion Lake thermal project once regulatory development approval was obtained;
• 36% increase in total proved and probable reserves to 291 million barrels of oil equivalent;
• Increased the net present value, before tax, discounted at 10%, of our proved reserves by 197% to $733 million and increased the NPV10 of our proved plus probable reserves by 89% to $2.2 billion;
• A total of 631 million barrels of contingent resources (best estimate) assigned to our 3 core properties with a NPV10 of $2.1 billion;
• Our largest property is the Blackrod SAGD project with proved and probable reserves of 182 million barrels and best estimate contingent resources of 566 million barrels of oil, with potential production reaching 80,000 barrels of oil per day;
• Our Onion Lake thermal project was assigned proved reserves of 47 million barrels of oil and proved plus probable reserves of 80 million barrels, with peak production potential of 12,000 barrels of oil per day. An additional 28 million barrels of best estimate contingent resource was attributed to the Onion Lake thermal project;
• Achieved our 2013 production guidance for 2013 with Q4 2013 production of 10,454 boe/day, a 15% increase compared to Q4 2012;
• full year average production of 9,730 boe/day in 2013, a 4% increase from 2012.

John Festival commented: "We are pleased to have met our year end production targets, but more important is the pattern of reserve recognition we have established over the past 3 years. This reserve recognition resulted from a deliberate plan of validating our core projects through delineation drilling, pilot results and regulatory approval. Mooney is now a successful commercial ASP flood and we look forward to our first phase of thermal development at Onion Lake.

The net present value (discounted at 10%, BT) Sproule assigned to our proved reserves represents $2.44 per common share and on a proved plus probable basis the value represents $7.30 per share. The value Sproule has assigned to best estimate contingent resources represents an additional $6.99 per share. We believe more of these values will be recognized as we proceed with development of our large thermal projects."

Oil and Gas Reserves

The following tables summarize certain information contained in the independent reserves report prepared by Sproule Unconventional Limited as of December 31, 2013. The report was prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities. Additional reserve information as required under NI 51-101 will be included in the Company's Annual Information Form which will be filed on SEDAR on or before March 31, 2014.

Summary of Oil and Gas Reserves