San Leon Energy reports year-end results and provides business update.

Highlights: • Acquisition of Island Oil & Gas Plc - world class assets on the Atlantic Margin and Celtic Sea • Acquisition of Gold Point Energy - greatly enhances portfolio and provided access to high potential shale gas concessions in Poland's Baltic basin • Farm out agreement and JV with Talisman Energy across the Company's Baltic Basin concessions to drill three and up to six wells to prove the shale gas play. • Ongoing relationship with PGS who will provide up to a $50m facility for seismic services. • Management team strengthened through addition of Shaun Hennessey, non executive director and John Buggenhagen, Vice President Exploration

Oisin Fanning, Chairman of San Leon Energy, commented, "San Leon has used its stock market listing and taken advantage of the prevailing industry conditions to make strategic acquisitions. These acquisitions have enabled us to build a diverse portfolio of assets with exceptional potential. The development of this portfolio has been driven with the objective of delivering value; aggressively moving from exploration into production. We are on track to achieve this; minimising the risk to our shareholders and encouraging long term inward investment to enhance the investment proposition."

Overview of Operations

Exploration Licence Areas: Poland Given the ever increasing need for energy to fuel its growing economy, Poland is regarded as an attractive place for petroleum exploration.

Some two-thirds of its energy is imported from Russia and to avoid such dependence, the Polish Government is actively encouraging foreign investment to tap the potential that exists in various parts of the country.

San Leon is accepted as a significant player in the Polish market, with interests in six licence areas and the potential for substantial revenue generation through the joint venture farm-out agreement with Talisman Energy.

The acquisition of Gold Point Energy (GPE) in 2009 adds valuable shale gas concessions in the Baltic Basin to the SLE portfolio and it is estimated that they have the potential to change the face of gas supply in the future.

Talisman Energy The joint venture farm-out agreement with Talisman Energy in Poland is recognised by industry analysts as a particularly astute business move.

Talisman is viewed as the leading international shale gas player and has made a significant investment and is committed to drilling a minimum of three wells and up to six wells on the three San Leon concession to prove the shale gas play on our three licences in the Baltic Basin covering some 600,000 acres. San Leon receives a 40% free carry with this arrangement which is effectively an inward investment in the company.

Under the terms of the deal, Talisman will: - Pay SLE €1.5M cash - (with PGS) pay 100% initial 2D seismic programme (over 450km) - Drill one well per concession to earn 30% interest - Drill at least one 1,000m horizontal with two optional 500m horizontals proposed - Have the option to earn an additional 30% interest, with an additional well option per block

Baltic Basin The Baltic Basin licences comprise 600,000 acres where SLE holds 100% of three concessions including Gdansk-W, Braniewo-S, Szczawno - with a pending application on the Czersk concession.

The work programme in the Baltic Basin includes 450 km of 2D seismic and three wells (up to 4500m) with a 1000 meter horizontal section on the Braniewo-S concession to be drilled over next two years. The initial drilling is expected Q2/Q3 2011.

Additionally, three optional wells with horizontal sections will be drilled on concessions after successful first phase of testing.

Initial technical evaluation of the shale gas potential in the Baltic Basin shows the play to have estimated reserves of 4 to 6 TCF of recoverable natural gas across San Leon's acreage. This represents a low risk scenario with excellent commercial gas potential.

Permian Basin South SLE is currently engaged in a 5 year exploration and development program on its two concessions, Nowa Sol and Wschowa. Both concessions are on trend with prolific Rotliegendes gas and Zechstein oil production. Nowa Sol contains four potentially under developed oil fields which SLE is currently evaluating for potential 3D seismic acquisition in 2010. It is believed that up to 500,000 BBLS of remaining oil can be recovered from these shallow known fields.

Some 3,000 km of 2D seismic and data from 90 wells are being evaluated.

SLE's current technical evaluation also indicates that a significant unconventional gas play exists in the relatively untested Carboniferous section.

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