WesternZagros Resources Ltd. provides an operational update for the drilling and testing operations at Mil Qasim-1 and Kurdamir-2, and the continued production from the Sarqala-1 extended well test

Mil Qasim-1 Exploration Well (Garmian Block)

The Mil Qasim-1 well was cased to a depth of 2,129 metres and successfully drilled and wirelined logged to a final total depth of 2,425 metres. The planned testing program of the Upper Fars sandstone reservoir is ongoing. An initial open hole drillstem test (DST) conducted in the lowermost part of the wellbore successfully flowed oil to surface with no water. A second DST test is presently being performed in the Upper Fars within the lower part of the cased hole section. The Company plans to release final results from the testing program when it is completed.

Kurdamir-2 Exploration Well (Kurdamir Block)

The Kurdamir-2 exploration well has been drilled through the Lower Fars top seal to a depth of approximately 2,270 metres, where the third string of casing will be set above the Oligocene reservoir. Operations, to date, remain on time and on budget. WesternZagros anticipates that the drilling and testing of the Oligocene reservoir will occur in the first quarter of 2012, with the deeper Eocene and Cretaceous reservoirs expected to be drilled and tested by the end of the second quarter of 2012.

Sarqala-1 Extended Well Test (Garmian Block)

Oil production from the extended well test of Sarqala-1 continues uninterrupted, averaging over 4,000 bopd in December. This production is refined in local plants under the auspices of the Ministry of Natural Resources.

WesternZagros anticipated production from the extended well test to continue to increase in January and is currently increasing the tank capacity to optimize production and truck loading.

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