WesternZagros 3rd Quarter Results

Kurdamir-1 Operations:

The Corporation has now concluded the initial well control operations at Kurdamir-1 and is testing a portion of the well. However, the Corporation anticipates it will re-drill the Kurdamir structure subsequent to the drilling of the third Production Sharing Contract ("PSC") commitment well. This re-drill will require additional capital and is dependent on the Corporation being able to access additional funding.

Insurance Claim Related To Well Control Operations:

The Corporation received confirmation of coverage from the insurers during the second quarter of 2010, which mitigates the uncertainty associated with the additional costs of the well recovery operations at Kurdimar-1. However, any unforeseen delays in payment from the insurers or any change in the determination of insurance coverage could impair the Corporation's ability to continue funding ongoing activities under the PSC. In addition, the insurance claim provides coverage for the Corporation's share of allowable costs up to a maximum of $45 million ($75 million gross), of which approximately $37.0 million, net to the Corporation, has been incurred up to September 30, 2010.

Continued Participation of the Company's Co-Venturers in the PSC:

WesternZagros is currently in active discussions with both Talisman and the Kurdistan Regional Government ("KRG") on future drilling activities on its PSC Contract Areas and the timing thereof. As part of these discussions, the Corporation may be required to initially, or entirely, fund 100% of the costs associated with the third commitment well if Talisman elects not to participate. If these discussions are not successfully concluded, the Company will rely on the force majeure provision of the PSC to guide the timing of future activities, refer to Note 14 - Commitments and Contingencies - for further discussion on force majeure.

Other Uncertainties:

In general, the Corporation's ability to continue operations and exploration activities as a going concern is dependent upon its ability to obtain additional funding over time. While the Corporation has been successful in obtaining its required funding in the past, there is no assurance that sufficient funds will be available to the Corporation in the future. The Corporation has no assurance that such financing will be available or be available on favorable terms. Factors that could affect the availability of financing include the continued support of its shareholders; the results of its exploration activities; meeting all commitments under the PSC; the resolution of remaining political disputes in Iraq; progress on the Federal Petroleum Law and the ability to export oil and natural gas from the Kurdistan Region of Iraq in accordance with the economic terms under the PSC; the state of the capital markets and the ability of the Corporation to obtain financing to develop reserves; and the timely receipt of proceeds from the current insurance claim associated with the Kurdamir-1 well control operations.

These consolidated financial statements do not reflect adjustments in the carrying values of assets and liabilities reported, revenue or expenses, nor the balance sheet classification used that would be necessary if the going concern assumption was not appropriate. Such adjustments could be material.

2. NATURE OF OPERATIONS

WesternZagros Resources Ltd. (the "Corporation") was incorporated on August 22, 2007 under the laws of the Province of Alberta. The Corporation, an international oil and gas company, is engaged in acquiring properties and exploring for, developing and in due course producing crude oil and natural gas in Iraq and is in the developmental stage. Through its subsidiaries, the Corporation's operations are related to its interest in a Production Sharing Contract with the Kurdistan Regional Government ("KRG") in respect of an exploration project area in the Kurdistan Region of Iraq.

3. SIGNIFICANT ACCOUNTING POLICIES

The interim consolidated financial statements are presented in accordance with Canadian generally accepted accounting principles. The interim consolidated financial statements have been prepared following the same accounting policies and methods of computation as the audited consolidated financial statements for the year ended December 31, 2009. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in the Corporation's annual report for the year ended December 31, 2009.

4. PROPERTY, PLANT AND EQUIPMENT

Accumulated

Depletion and

As at September 30, 2010 Cost Depreciation Net Book Value

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Kurdistan Region Exploration

Project $ 169,148 $ - $ 169,148

Corporate 1,832 (1,461) 371

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$ 170,980 $ (1,461) $ 169,519

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Accumulated

Depletion and

As at December 31, 2009 Cost Depreciation Net Book Value

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Kurdistan Region Exploration

Project $ 154,244 $ - $ 154,244

Corporate 1,684 (1,017) 667

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$ 155,928 $ (1,017) $ 154,911

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All costs included in the Kurdistan Region Exploration Project are excluded from depletion as they represent costs incurred related to properties in cost centres that are considered to be in the development stage. Currently, there are no proved reserves. All costs, net of any associated revenues, have been capitalized. The Corporation capitalized $2.2 million of general and administrative costs (September 30, 2009 - $2.1 million) including $0.7 million of stock-based compensation (September 30, 2009 - $1.0 million) directly related to exploration activities for the nine months ended September 30, 2010.

As at September 30, 2010, the Corporation had approximately $147 million, net to WesternZagros, of recoverable costs available that may be recovered from future oil or natural gas sales in accordance with the terms of the PSC.

For the nine months ended September 30, 2010, the Corporation credited $37.0 million of insurance recoveries related to the well recovery operations at Kurdamir-1 against the Kurdistan Region Exploration Project, net of a $0.4 million deductible.

During the nine months ended September 30, 2010, the Corporation has received $15.7 million of insurance proceeds from the insurers. The Company estimated an additional receivable of $21.3 million for interim claimable costs as at September 30, 2010, net of an estimate for incurred costs that may not be claimable. These costs, under the terms of the insurance policy, are subject to review and approval by the adjuster as appointed by the insurers and are submitted by WesternZagros as they are incurred and paid. Subsequent to September 30, 2010, $1.2 million in proceeds was received related to previously approved interim claims.

5. DEPOSITS HELD IN TRUST

The Corporation had deposited in trust certain amounts to be utilized to fund certain expenditures for drilling operations. The deposits bear interest at prevailing market rates. As of September 30, 2010, the Corporation had a $0.4 million deposit held in trust for a supplier.

6. ASSET RETIREMENT OBLIGATION

The Corporation records the fair value of legal obligations associated with the retirement and reclamation of tangible long-lived assets when incurred. The asset retirement cost, equal to the estimated fair value of the asset retirement obligation, is capitalized as part of the cost of the related long-lived asset. The estimation of this cost is based on engineering estimates using current costs and technology and in accordance with industry practice. The Corporation's share of total undiscounted amount of estimated cash flow required to settle the obligations is $1.2 million. The asset retirement obligations are calculated based on a weighted-average approach under the assumption that the cash out-flows required to settle the obligations are incurred either two years after inception or 25 years after inception, with the most likely case that the obligations are paid in the years 2033 and 2034. The Corporation used a credit risk adjusted risk-free rate of 10 percent and an inflation factor of 4 percent to calculate the net present value of the future retirement obligation.

The following table presents the reconciliation of the Corporation's asset retirement obligation:

September 30, 2010 December 31, 2009

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Balance, beginning of year $ 175 $ 69

Liabilities incurred - 95

Accretion expense 11 11

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Balance at end of period $ 186 $ 175

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7. INCOME TAXES

Three months ended Nine months ended

September 30, September 30, September 30, September 30,

2010 2009 2010 2009

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Current Income Tax $ (111) $ (28) $ (1,014) $ (1,428)

Recovery

Future Income Tax Expense 43 181 151 646

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$ (68) $ 153 $ (863) $ (782)

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Future Income Tax assets are comprised of:

As at September 30, 2010 December 31, 2009

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Current Future Income Tax Asset:

Non-Capital Loss Carryforwards $ - $ 27

Share Issue Costs 127 204

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$ 127 $ 231

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As at September 30, 2010 December 31, 2009

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Long-term Future Income Tax Asset

(Liability):

Share Issue Costs $ 310 $ 387

Book Values in Excess of Tax Values (169) (198)

Valuation Allowance (183) (183)

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$ (42) $ 6

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8. SHARE CAPITAL

a. Authorized

The Corporation is authorized to issue an unlimited number of common and preferred shares. The common shares are without nominal or par value.

b. Common Shares Issued and Outstanding

Number of Amount

Shares (000's)

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Balance as at December 31, 2009 and September

30, 2010 207,464,320 $ 253,583

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9. STOCK OPTIONS AND STOCK-BASED COMPENSATION

Pursuant to the stock option plan, the Board of Directors may grant options to directors, officers, other employees and other service providers. The aggregate number of shares that may be reserved for issuance pursuant to stock options may not exceed 10 per cent of the issued and outstanding common shares on a non-diluted basis of the Corporation at the time of granting. Stock options expire not more than five years from the date of grant, or earlier if the individual ceases to be associated with the Corporation, and vest at the discretion of the Board of Directors.

No new options were granted during the third quarter of 2010, while 1,001,666 options were forfeited. The following table presents the reconciliation of stock options granted as of September 30, 2010:

Weighted Average

exercise price

Nine Month Period Ended Number of Options ($CAD)

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Outstanding, beginning of the year 13,007,334 $ 1.50

Granted 85,000 0.50

Exercised - -

Forfeited (1,610,000) 1.59

Expired - -

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Outstanding, end of period 11,482,334 $ 1.48

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The fair value of all options granted have been estimated at the grant date using the Black-Scholes option pricing model and are summarized in the following table:

Nine Month Period Ended September 30, 2010

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Weighted average fair value of stock options granted $0.28

Risk Free Interest Rate 2.00%

Expected Life 3 years

Expected Volatility 88%

Dividend Per Share Nil

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10. CONTRIBUTED SURPLUS

The following table presents the reconciliation of Contributed Surplus:

Nine Month Period Ended September 30, 2010

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Balance, beginning of year $ 8,749

Stock-based Compensation 1,535

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Balance, end of period $ 10,284

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11. LOSS PER SHARE

The basic weighted average number of common shares outstanding calculated for the three and nine month period ended September 30, 2010 was 207,464,320 (September 30, 2009 - 207,464,320). In computing diluted per share amounts, the Corporation's options totaling 11,482,334 (September 30, 2009 - 12,766,000) have been excluded as anti-dilutive. Accordingly, no additional common shares were added to the basic weighted average shares outstanding to account for dilution.

12. SHAREHOLDER RIGHTS PLAN

On October 18, 2007, the Corporation adopted a shareholder rights plan (the "Plan"). Under the Plan, one right has been issued in respect of each currently issued common share and one right will be issued with each additional common share which is issued. The rights remain attached to the common shares and are not exercisable or separable unless one or more of certain specified events occur. If a person or group acting in concert acquires 20 per cent or more of the common shares of the Corporation, the rights will entitle the holders thereof (other than the acquiring person or group) to purchase common shares at a substantial discount from the then market price. The rights are not triggered by a "Permitted Bid" as defined in the Plan. The Plan will remain in effect until termination of the annual meeting of shareholders in 2013, unless extended by resolution of the shareholders at such meeting.

13. CHANGES IN NON-CASH WORKING CAPITAL

Three months ended Nine months ended

September 30, September 30, September 30, September 30,

2010 2009 2010 2009

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Operating

Activities

Accounts Receivable $ 233 $ (241) $ 186 $ (174)

Prepaid Expenses 170 91 (42) 166

Income Tax Receivable (111) 1,762 (417) (1,417)

Accounts

Payable and

Accrued Liabilities - 3 - (4)

Income Tax Payable - - - (4,679)

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$ 292 $ 1,615 $ (273) $ (6,108)

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Investing Activities

Accounts Receivable $ (908) $ 542 $ (4,045) $ 4,896

Accounts

Payable and

Accrued Liabilities (2,347) 2,133 (5,785) 4,587

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$ (3,255) $ 2,675 $ (9,830) $ 9,483

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14. COMMITMENTS AND CONTINGENCIES

Commitments

a) Production Sharing Contract

Under the terms of its PSC, the Corporation has a 40 percent working interest and the KRG has a 20 percent interest in the PSC which is carried by the Corporation. The remaining 40 percent was allocated to a wholly-owned subsidiary of Talisman by the KRG as announced on June 23, 2008. The Corporation, the KRG and Talisman are collectively the "Contractor Group" under the PSC. WesternZagros is the operator of the PSC lands until the end of the first operating sub-period of the PSC, when a Joint Operating Company may be established if so elected by the Contractor Group.

The PSC contemplates two exploration sub-periods of three years and two years, respectively, with two possible one-year extensions. The first exploration sub-period ends December 31, 2010. During the first sub-period, the Contractor Group is required to complete a minimum of 1,150 kilometres of seismic surveying (which has been completed), to drill three exploration wells, and to commit a minimum of $75 million in the aggregate on these activities. At the end of the first exploration sub-period, the Corporation and the other parties to the PSC may relinquish the entire contract area (other than any discovery or development areas), continue further exploration operations by entering into the second exploration sub-period, or request a one-year extension for further exploration and appraisal activities prior to deciding to enter into the second exploration sub-period.

The PSC also includes capacity building support, which concluded in April 2009, and annual funding for certain technological, logistical, recruitment and training support during the exploration sub-periods. To meet its remaining commitments for the first exploration sub-period, the Corporation estimates expenditures of approximately $15 million to $25 million, excluding the costs associated with future activities at Kurdamir-1. Additional costs of any testing, if required, would be in addition to these amounts. This represents the Corporation's 60 to 100 percent funding requirement and includes the remaining costs associated with drilling one additional exploration commitment well by the end of the first exploration sub-period, and providing associated supervision and local office support.

WesternZagros, on behalf of the Contractor Group, has applied to the KRG to extend the first exploration sub-period for up to 12 months, i.e. to December 31, 2011, in order to allow sufficient time for drilling the flank of the Kurdamir structure to determine whether the downdip Oligocene Reservoir is oil bearing or gas-condensate bearing. The Corporation, on behalf of the Contractor Group, has also notified the KRG of a force majeure event under the terms of the PSC. See the "Force Majeure" section below for further information.

During the second exploration sub-period, the Contractor Group, or those parties who have elected to participate in further exploration, is required to complete a minimum of 575 kilometres of seismic surveying, drill at least two exploration wells and commit a minimum of $35 million to these activities. At the end of the second exploration sub-period, the Corporation and the other parties to the PSC who have elected to participate in the second exploration sub-period, may relinquish the entire contract area (other than any discovery or development areas) or continue further exploration and appraisal operations into the extension periods subject to the following relinquishment requirements. At the end of the second exploration sub-period, and at the end of each subsequent extension period, the PSC requires the Corporation, and other parties who have elected to participate, to relinquish 25 percent of the remaining undeveloped area within the PSC lands or the entire contract area (other than any discovery or development areas).

Force Majeure

The Corporation, on behalf of the Contractor Group, has notified the KRG of a force majeure event under the terms of the PSC related to the well control and subsequent sidetracking operations associated with Kurdamir-1. Under the terms of the PSC, when a force majeure event occurs, the time resulting from any such delay and the time necessary to repair any damage resulting from the delay would be added to any time period provided under the PSC, including the first exploration sub-period. The period of force majeure started on January 22, 2010 and continued until October 14, 2010.

b) Consulting Service Agreements

In 2003 the Corporation entered into a consulting service agreement that provides a three percent right to indirectly participate in the future profits the Corporation may earn in respect to the PSC, in exchange for consulting services provided since that date. In the determination of profits under this agreement, the Corporation is entitled to deduct the consultant's proportional share of all costs associated with acquiring the PSC and the exploration, appraisal, development and production expenditures incurred by the Corporation ("eligible costs"), together with interest on such percentage of eligible costs at LIBOR plus three percent.

Further, in 2004 the Corporation entered into a consulting service agreement that provides a two percent right to indirectly participate in the future profits the Corporation may earn in respect to the PSC, in exchange for the provision of consulting services during the period 2004 to 2006. In determination of profits under this agreement, the Corporation is entitled to deduct one percent of all eligible costs, together with interest on such percentage of eligible costs at LIBOR plus ten percent. The consultant is required to fund the additional one percent of all eligible costs.

c) Other

The Corporation has entered into various exploration-related contracts, including contracts for drilling equipment, services and tangibles. The following table summarizes the commitments the Corporation has under these exploration-related contracts and other contractual obligations at September 30, 2010:

For the Years Ending December 31,

2010 2011 2012 2013 2014+ Total

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Exploration 3,450 500 - - - 3,950

Office 127 480 160 - - 767

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3,577 980 160 - - 4,717

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Contingencies

Litigation

From time to time the Corporation may become involved in legal or administrative proceedings in the normal conduct of business. Amounts involved in such matters are not reasonably estimable due to uncertainty as to the final outcome. The Company's assessment of the likely outcome of these matters is based on its judgement of a number of factors, including precedents and facts specific to the matters. The Corporation does not believe these matters, individually or in aggregate will have a material adverse effect on its consolidated financial position or results of operations.

Regulatory

Oil and gas operations are subject to extensive controls and regulations imposed by various levels of government that may be amended from time to time. The Corporation's operations may require licenses and permits from various governmental authorities in the countries in which it operates. Under the PSC, the KRG is obligated to assist in obtaining all permits and licenses from any government agencies in the Kurdistan Region and from any other government administration in Iraq. There can be no assurance that the Corporation will be able to obtain all necessary licenses and permits that may be required to carry out exploration and development of its projects.

The political and security situation in Iraq is unsettled and volatile. The Kurdistan Region is the only "Region" of Iraq that is constitutionally established pursuant to the Iraq Constitution, which expressly recognizes the Kurdistan Region. The political issues of federalism and the autonomy of the Regions of Iraq are matters about which there are major differences between the various political factions in Iraq. These differences could adversely impact the Corporation's interest in the Kurdistan Region including the ability to export any hydrocarbons as a result of our activities.

15. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Financial instruments of the Corporation consist of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities. The Corporation's cash and cash equivalents are designated as held-for-trading and are measured at fair value, which approximates carrying value due to the short-term nature of these instruments. The fair value of cash and cash equivalents is classified as Level I fair value measurement. Accounts receivable are designated as loans and receivables and recorded at amortized cost, which approximates fair value due to the short term nature of the instrument. Accounts payable and accrued liabilities are designated as other liabilities and are recorded at amortized cost. The fair value of accounts payable and accrued liabilities approximate their carrying values due to the short term nature of these instruments.

The Corporation is exposed to credit risk, interest rate risk, market risk, liquidity and funding risk. The following is a description of those risks and how the Corporation manages exposure to them:

Credit Risk

Credit risk is the risk of loss associated with counterparty's inability to fulfill its payment obligations. The Corporation is currently exposed to credit risk on its cash and cash equivalents, to the extent that these balances are invested with various institutions. The Board of Directors of the Corporation has approved an Investment Policy to dictate the various types of instruments and institutions that can be invested in and monitors these against this policy on a regular basis. Currently, the Corporation has entered into transactions for cash equivalents with major Canadian financial institutions with investment grade credit ratings, as well as purchases Government of Canada instruments.

Under the terms of the PSC, as described in note 14, the KRG elected a wholly-owned subsidiary of Talisman as the third party participant under the PSC. The Corporation is subject to credit risk associated with Talisman's 40 percent interest in the PSC and its share of related expenditures. As at September 30, 2010, the Corporation had $10.7 million of receivables outstanding mostly from Talisman under the credit terms defined by the PSC, including penalty provisions for any amount in default.

Market and Interest Rate Risk

Market risk is the risk of loss that may arise from changes in market factors such as interest rate, foreign exchange rates and equity or commodity prices. The Corporation is exposed to interest rate risk to the extent that changes in market interest rates will impact any interest earned on the Corporation's cash and cash equivalent. The Corporation is also exposed to foreign exchange risk, as the majority of costs are anticipated to be incurred in U.S. dollars and the funds it will have available to it may be in other currencies.

The Corporation's Investment Policy dictates the various types of instruments and institutions that can be invested in and monitors these against this policy on a regular basis. The Board of Directors has also approved a Foreign Exchange Policy to dictate the currencies held by the Corporation and the instruments that can be utilized by the Corporation to meet day to day needs. This Foreign Exchange Policy requires the Corporation to hold the majority of its cash and cash equivalents in U.S. dollars and sets out the type and duration of instruments that can be used to meet the Corporation's day to day foreign exchange needs. The Foreign Exchange Policy does allow the Corporation to hold other balances, mainly Canadian dollars, to meet the requirements to fund ongoing general and administrative and other spending requirements in these currencies. Neither policy permits the Corporation to enter into any economic hedging as it relates to interest or foreign exchange risks. As at September 30, 2010, had the U.S. Dollar changed by one percent against the Canadian dollar, with all other variables held constant, the Corporation's foreign exchange gain or loss would have been affected by approximately $24,000.

The marketability and price of oil and natural gas that may be acquired or discovered by the Corporation is, and will continue to be, affected by numerous factors beyond its control including the impact that the various levels of government may have on the ultimate price received for oil and gas sales. The Corporation's ability to market its oil and natural gas may depend upon its ability to secure transportation. The Corporation may also be affected by deliverability uncertainties related to the proximity of its potential production to pipelines and processing facilities and operational problems affecting such pipelines and facilities as well as potential government regulation relating to price, the export of oil and natural gas and other aspects of the oil and natural gas business.

Both oil and natural gas prices are subject to wide fluctuation. During 2010, both oil and gas prices remained somewhat volatile with West Texas Intermediate ranging from $68 to $86 per barrel. WesternZagros originally negotiated the economic terms of its PSC in 2007 in a $50 per bbl crude oil price environment and any significant and sustained decline in crude oil prices from this price may impact the feasibility of WesternZagros' business plan.

Liquidity and Funding Risks

Liquidity and funding risk is the risk that the Corporation may be unable to generate or obtain sufficient cash or its equivalent in a timely and cost-effective manner to meet its commitments as they come due. As the Corporation is engaged in acquiring properties and exploring for crude oil and natural gas and is in the developmental stage, it currently does not have a revenue source outside of interest on its cash and cash equivalent and short-term investment balances. The Corporation is therefore required to fund its share of all commitments from existing balances or access additional sources of cash from the equity markets. The Board of Directors reviews the Corporation's cash and cash equivalent balances against the Corporation's commitments and assesses the timing and need for additional equity financing on a regular basis. However, the Corporation's results will impact its ability to access the capital necessary to meet these commitments. There can be no assurance that debt or equity financing will be available or sufficient to meet these requirements or for other corporate purposes or, if debt or equity financing is available, that it will be on terms acceptable to the Corporation. In recent years, the capital markets have seen a period of significant market instability. The Corporation's ability to access the capital markets in the future may be affected by any prolonged period of market instability. The inability of Corporation to access sufficient capital for its operations could have a material adverse effect on the Corporation's financial condition, results of operations and prospects. Additionally, the Corporation currently expects to re-drill the Kurdamir structure in the future after first drilling the third commitment well required under the PSC. The Corporation will have to raise funds in order to be able to complete the re-drill.

16. CAPITAL STRUCTURE

The Corporation's capital consists of shareholder's equity and working capital. The Corporation will adjust its capital structure to manage its drilling program through the issuance of shares and adjustments to capital spending.

The Corporation's objectives when managing its capital structure are to:

i) Ensure adequate levels of available cash and cash equivalents and short-term investments to meet the Corporation's commitments under the PSC.

ii) To prudently fund expenditures related to the acquisition of properties, and for exploration, appraisal and development of crude oil and natural gas resources.

The Corporation funds its share of expenditures of all commitments from existing cash and cash equivalent balances received primarily from issuances of shareholders' equity. The Corporation has not entered into any debt financing arrangements at the balance sheet date and is not subject to any externally imposed capital requirements.

The Board of Directors regularly reviews the Corporation's cash and cash equivalents against the Corporation's expenditure commitments and assesses the timing and need for additional equity financing. The Corporation's results will impact its access the capital necessary to meet these expenditure commitments. There can be no assurance that equity financing will be available or sufficient to meet those commitments, or for other corporate purposes, or if equity financing is available, that it will be on terms acceptable to the Corporation. The inability of the Corporation to access sufficient capital for its operations could have a material adverse impact on the Corporation's financial condition, results of operations and prospects. During 2010 the capital markets have continued to see a period of market instability. The Corporation's ability to access the capital markets in the future may be affected by any prolonged period of market instability.

17. CHANGE IN FINANCIAL STATEMENT PRESENTATION

Certain comparative information has been changed in conformity to the current year financial statement presentation.

For further details on WesternZagros Resources Ltd., please refer to the November 2010 Corporate Presentation available on the WesternZagros website: http://www.westernzagros.com/documents/WZRCorporatePresentationNovember2010.pdf

About WesternZagros Resources Ltd.

WesternZagros is an international natural resources company engaged in acquiring properties and exploring for, developing and producing crude oil and natural gas in Iraq. The Company, through its wholly-owned subsidiaries, holds a Production Sharing Contract with the Kurdistan Regional Government in the Kurdistan Region of Iraq. WesternZagros' shares trade in Canada on the TSX Venture Exchange under the symbol "WZR".

This news release contains certain forward-looking information relating, but not limited, to operational information, future drilling plans and testing programs and the timing and costs associated therewith. Forward-looking information typically contains statements with words such as "anticipate", "estimate", "expect", "potential", "could", or similar words suggesting future outcomes. The Company cautions readers not to place undue reliance on forward-looking information as by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by WesternZagros. Readers are also cautioned that disclosed test rates and potential production rates may not be indicative of ultimate production levels. In addition, the forward-looking information is made as of the date hereof, and the Company assumes no obligation to update or revise such to reflect new events or circumstances, except as required by law.

Forward-looking information is not based on historical facts but rather on management's current expectations and assumptions regarding, among other things, plans for and results of drilling activity, future capital and other expenditures (including the amount, nature and sources of funding thereof), continued political stability, timely receipt of any necessary government or regulatory approvals, the continued participation of the Company's co-venturers in exploration activities and the timely receipt of any insurance proceeds due to the Company. Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect. Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by WesternZagros including, but not limited to, risks associated with the oil and gas industry (e.g. operational risks in exploration; inherent uncertainties in interpreting geological data; changes in plans with respect to exploration or capital expenditures; interruptions in operations together with any associated insurance proceedings; the uncertainty of estimates and projections in relation to costs and expenses and health, safety and environmental risks), risks associated with resource estimates, the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and risk associated with international activity. For further information on WesternZagros and the risks associated with its business, please see the Company's Annual Information Form dated March 24, 2010 which is available at www.sedar.com.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

CONTACT INFORMATION:

WesternZagros Resources Ltd.

Greg Stevenson

Chief Financial Officer

(403) 693-7007

or

WesternZagros Resources Ltd.

Lisa Harriman

Investor Relations

(403) 693-7017

[email protected]

www.WesternZagros.com

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