Mr. Michael Raleigh reports

EPSILON ENERGY LTD. ANNOUNCES NORMAL COURSE ISSUER BID FOR COMMON SHARES

Epsilon Energy Ltd. has received Toronto Stock Exchange approval to a notice of intention to commence a normal course issuer bid through the facilities of the TSX, permitting the corporation to repurchase, for cancellation, up to 2,527,870 of the 50,557,410 common shares that are currently issued and outstanding. This represents 5.0 per cent of the issued and outstanding common shares. The average daily trading volume for the last six completed calendar months was 100,740 common shares. The number of shares to be purchased in any one day shall not exceed 25,185 common shares (being 25 per cent of the average daily trading volume). The common share NCIB will commence on Sept. 19, 2013, and run until the earlier of the date on which purchases under the bid have been completed and Sept. 18, 2014.

The common share NCIB purchases are to be made through the facilities of the TSX in accordance with its policy statements on normal course issuer bids. The price, which Epsilon will pay for any common shares, will be the market price at the time of acquisition plus brokerage fees. Purchases may commence on Sept. 19, 2013, and will terminate no later than Sept. 18, 2014.

To the knowledge of the directors and officers of Epsilon, no director or officer, or associate of a director or officer of the corporation, no person acting jointly or in concert with the corporation nor any person holding 10 per cent or more of the common shares has any present intention to sell common shares during the period of the normal course issuer bid. During the past 12 months, the corporation previously purchased 52,500 common shares, at an average price of $3.11 per share, pursuant to a normal course issuer bid, which expired on Sept. 6, 2013.

Epsilon believes that the market price of the common shares does not fully reflect the value of its business. Management anticipates having sufficient uncommitted cash available over the next 12 months, which it can use to acquire the maximum number of shares under the common share NCIB. The common share NCIB will be one of management's priorities for increasing value for remaining shareholders over the course of the year ahead.

We seek Safe Harbor.