Chinook Energy Inc. provide the following developments:

Strategic Acquisition

Effective April 1, 2012, Chinook acquired certain assets in the greater Grande Prairie area of northwestern Alberta from a senior producer for $31 million, before closing adjustments and related costs (the "Acquisition"). The acquired assets are within Chinook's core Grande Prairie operating area and expand the Company's Dunvegan and Doe Creek oil focus.

Key attributes of the Acquisition are as follows:

• Approximately 17 net sections of land; • Average 82% operated working interest in an established Dunvegan oil pool at Elmworth; • Average 75% operated working interest in an established Dunvegan oil pool at Knopcik; • Approximately 80% working interest in 10 additional sections of undeveloped land and royalties in the Sinclair area; • Average production of 290 boe/d since April 1, 2012, with 60% being from oil and liquids; • Approximately 1.52 MMboe of proved reserves and 2.21 MMboe of proved plus probable reserves based on an independent reserves evaluation prepared by McDaniel & Associates Consultants Ltd. effective July 1, 2012; • 10 year proved developed producing reserve life index and 18 year proved plus probable reserve life index; • Over 30 additional horizontal locations identified; and • Significant waterflood upside.

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