WesternZagros Discovers "Giant Oil Field" at Kurdamir-2

(6) The gross unrisked contingent resources for gas reflect reductions for condensate recovery, surface losses, and fuel gas.

(7) Low Estimate is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate.

(8) Best Estimate is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater of less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.

(9) High Estimate is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.

(10) Mean Estimate is the average from the probabilistic assessment.

(11) Barrels of oil equivalent (BOEs) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl has been used and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This resource disclosure coincides with the filing on SEDAR at www.sedar.com of a material change report (the "Material Change Report"), which includes the following additional information: mean estimates of the gross unrisked contingent resources and prospective resources for various prospects on the Company's Garmian block, the specific contingencies which prevent the classification of contingent resources for the Kurdamir and Garmian blocks as reserves, the risks and level of uncertainty associated with the discovery and recovery of the resources, the risks and uncertainties relating to the development of any discovered resources, and the significant factors relevant to the estimates.

The Kurdamir-2 exploration well was spudded on October 25, 2011 and is operated by Talisman. The well is located approximately two kilometres northeast of the Kurdamir-1 discovery well and is targeting the Oligocene, Eocene and Cretaceous reservoirs on the flank of the structure where the combined potential oil interval is likely at maximum thickness. WesternZagros and Talisman each have a 40 percent working interest in the Kurdamir Block with the Kurdistan Regional Government ("KRG") holding the remaining 20 percent.