Mr. Corey Ruttan reports

PETROMINERALES ACQUIRES 87.5% INTEREST IN CANAGUARO BLOCK

Petrominerales Ltd. is acquiring an 87.5-per-cent interest the Canaguaro block in the Llanos basin of Colombia.

Summary of acquisition

Petrominerales has entered into binding agreements to purchase an 87.5-per-cent interest in the Canaguaro block, subject to approval from Colombia's National Hydrocarbon Agency and other customary closing conditions, for cash consideration of $15.95-million (U.S.), plus a commitment to carry the company's joint venture partner on its first $5.3-million (U.S.) of costs. The Canaguaro block has one producing oil field that was discovered in November, 2010, with the Canaguay-1 well. Upon closing the acquisition, Petrominerales will become the operator of the block. The Canaguaro acquisition has the following characteristics:

Current production(1):  416 barrels of 23-degree-API gravity oil per day

Proved reserves(2):  1,194,000 barrels

Proved plus probable reserves(2):  2,277,000 barrels

Proved plus probable reserves life index:  15 years

Undeveloped land:  5,621 acres

3-D seismic:  Complete coverage of the Canaguaro block

Transaction metrics

The transaction metrics for the long reserve life acquired production, on a working interest basis, are:

Production:  $51,020 per barrel of oil per day

Proved plus probable reserves:  $9.33 per barrel

Proved plus probable reserves, including FDC (3):   $24.57 per barrel

Canaguaro outlook

The company's acquisition of an interest in the Canaguaro block is strategic for a number of reasons, including adding to the company's existing production and reserves and providing a large, contiguous area of underexplored land located adjacent to the company's blocks 25 and 31. Petrominerales believes the Canaguaro block is strategically located on the same fault trend as other oil fields to the south of the block, including the Balay discovery and the company's Corcel and Guatiquia discoveries.

Petrominerales plans to drill up to two wells in 2013 on the Canaguaro block and plans to commence drilling operations on the first well during the third quarter of 2013.

Notes:

1. Average daily production of Canaguay-1 well for the month of April, 2013, Petrominerales working interest share (87.5 per cent);
2. Reserves were evaluated for Santa Maria Petroleum by Petrotech Engineering Ltd., an independent qualified reserves evaluation, as at Dec. 31, 2012. Figures, including undeveloped land, in this press release are presented on a Petrominerales working interest share (87.5 per cent).
3. Future development costs consists of capital expenditures relating to producing the proved plus probable reserves, as estimated in the Petrotech report.

We seek Safe Harbor.