Mr. Wade Becker reports

PINECREST ENERGY INC. ANNOUNCES INTENTION TO COMMENCE NORMAL COURSE ISSUER BID AND PROVIDES OPERATIONAL UPDATE

Pinecrest Energy Inc., subject to the TSX Venture Exchange approval, intends to commence a normal course issuer bid to purchase, from time to time, as it considers advisable, up to 19,559,679 common shares (which is equal to 10 per cent of the public float) on the open market through the facilities of the TSX-V. Cormark Securities Inc. has been engaged to conduct the bid on behalf of Pinecrest. The price that Pinecrest will pay for any common shares under the bid will be the prevailing market price on the TSX-V at the time of purchase. Common shares acquired under the bid will be subsequently cancelled.

The bid will commence upon the receipt of approval from the TSX-V and will terminate one year from such date or such earlier date as the bid is completed or terminated at the option of Pinecrest.

The company believes that the purchase of its shares at recent market prices is an appropriate use of available cash, as management believes recent market prices of its shares do not fully reflect the underlying value of its assets and business, and that, at such times, the purchase of common shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders.

To the knowledge of the company, no director or senior officer of the company currently intends to sell any common shares into the bid.

Waterflood update

The company's second waterflood scheme (Evi project No. 2) has now been on continuous injection for approximately six months. Initial results continue to meet performance expectations with oil production from offsetting wells exhibiting a definite correlation to the rate of water injection. Initially, water was injected at a high rate in order to demonstrate the potential for a quick response. Since achieving this objective, injection rates have been reduced in order to better manage the long-term recovery of the project. In April, one of the offset wells producing 100 barrels of oil per day went down due to a mechanical failure (parted rods) and remained shut in for 27 days because of road bans during spring breakup. This well has subsequently been placed back on production and is currently producing 106 bopd. Based on primary recovery (no waterflood) and natural declines, the producing wells in this scheme would be projected to produce approximately 54 bopd. Currently, this scheme is producing approximately 165 bopd, which represents a threefold increase over primary production. This is consistent with analog waterflood schemes in the immediate greater Red Earth area.

The company's third waterflood scheme (Loon project No. 1) has been on injection since March 21, 2013. This scheme consists of one horizontal water injection well, and a combination of offsetting horizontal and vertical producing wells. Since start-up, the company has been managing water injection at or near two times voidage replacement, and, although very early (just over two months from start of injection), the closest well to the injector (a vertical well) is exhibiting an increase in oil production rates of three to five times. The company is very excited to see this early response, and, while the company recognizes that patience is required when determining the efficacy of secondary recovery schemes, it is anticipated that similar responses on the balance of the offsetting wells will be observed in the coming months.

The focus of the company remains firmly fixed on the implementation of its seven operated 2013 waterflood schemes. Results to date from the company's first three waterflood projects have very been positive. Two additional projects are now ready to be commissioned, and injection on these two schemes will begin early in the third quarter. Water injection on the final three projects located in the Evi field is scheduled to commence at the end of the third quarter of 2013.

Operations

Pinecrest has budgeted to commence its second-half capital expenditures in July. The company has, over the past three months, undertaken a thorough review of all of the horizontal wells drilled into the Slave Point utilizing in-house expertise, a recognized reservoir engineering consultant (distinguished Society of Petroleum Engineers author) and a proprietary industry fracturing database specific to the Slave Point in the greater Red Earth area (which includes both Pinecrest's cemented and open-hole completions as well as the rest of industry). The company is extremely excited with the findings of its review, in particular, the superior well performance of open-hole packer completions as compared with the cemented liner/monobore technique and the subsequent increased profitability. Please refer to the updated presentation on the company's website for further detail.

Current production levels have been affected by normal seasonal access limitations to well sites as a result of spring breakup. This affects wells where produced fluids are trucked, and also wells that require repairs and maintenance. Consequently, the company has experienced a seasonably normal 10-per-cent to 12-per-cent production downtime. Productive capability (all wells on without any downtime due to mechanical or access issues) is over 4,000 barrels of oil equivalent per day. Production for the second quarter of 2013 will average between 3,600 boepd and 3,900 boepd, but will be dependent on weather and access.

We seek Safe Harbor.