Caracal Energy Inc. provides an operational update summarizing current exploration and development activities in Chad.

Krim-1 Exploration Well

Structural closure southwest of the Mangara field Good porosity and good shows identified over 85 metres so far Maximum natural flow rate of 2,580 barrels oil per day ("bopd") recorded during testing. It is estimated that with an electric submersible pump ("ESP") in the well a stable production rate of 3,000 - 4,500 bopd is achievable

Mangara Drilling Update

Successful testing of the Cretaceous E sands in the Mangara eastern lobe Maximum natural flow rate of 1,917 bopd recorded during testing. It is estimated that with an ESP in the well a stable production rate of 1,500 - 2,500 bopd is achievable Pre-drill un-risked Prospective Resource estimate of 25 MMbbls and 58 MMbbls on a Pmean and P10 basis, respectively by the Company's third party reserves evaluator, McDaniel & Associates ("McDaniel") Further E sands potential exists in the Mangara western lobe Rig Contract Award

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