Mr. Corey Ruttan reports

PETROMINERALES AWARDED THREE BLOCKS IN THE 11TH BID ROUND IN BRAZIL

Petrominerales Ltd., following the Brazilian 11th bid round, administered by the Agencia Nacional do Petroleo Gas Natural e Biocombustiveis of Brazil (ANP), successfully bid on three blocks. The company was awarded block REC-T 106 and block REC-T 107 in the Reconcavo basin and block TUC-T 177 in the Tucano basin, all located in the state of Bahia, onshore Brazil.

Block REC-T 106 comprises 7,759 acres located in the southern portion of sector SREC-T1 of the Reconcavo basin. The company's first phase work commitment consists of the acquisition of 10 square kilometres of 3-D seismic. Block REC-T 107 comprises 7,561 acres located in the southern portion of sector SREC-T1 of the Reconcavo basin, near the company's Bom Lugar field. The company's first phase work commitment consists of drilling two wells. Block TUC-T 177 comprises 46,505 acres located in the southern portion of sector STUC-S of the Tucano basin. The company's first phase work commitment consists of drilling one well and the acquisition of 31 square kilometres of 3-D seismic.

The three blocks awarded will be subject to ANP contracts, expected to be finalized in August, 2013. Petrominerales participated in the bid round through its subsidiary, Alvopetro SA Extracao de Petroleo e Gas Natural, and upon the execution of the ANP contracts, Petrominerales will hold a 100-per-cent interest in block REC-T 106 and block TUC-T 177 and a 75-per-cent interest in block REC-T 107. All three blocks have an initial three-year exploration phase.

The blocks acquired in the bid round cover 61,825 acres, allowing the company to more than double its land position in Brazil to approximately 120,000 acres (103,000 net acres). The REC-T 106, REC-T 107 and TUC-T 177 blocks increase the company's exposure not only to the deep tight oil potential in the Gomo horizon but also add considerable exploration potential in shallower conventional reservoirs. The company's initial focus will be to demonstrate the commercial deliverability of the Gomo sands using fracture stimulation technology.

The company's vision in Brazil is to implement a large-scale, repeatable, low-risk, multiwell development program, utilizing advanced technology and completion techniques. The company looks forward to drilling its first wells in Brazil later this year.

We seek Safe Harbor.