Mr. Kevin Gibson reports

PALLISER OIL & GAS COMPLETES FINANCINGS FOR GROSS PROCEEDS OF APPROXIMATELY $7.0 MILLION

Palliser Oil & Gas Corp. has completed its previously announced bought-deal financing, pursuant to which Palliser issued a total of 9,047,700 common shares at a price of 63 cents per common share and 1,039,000 flow-through shares at a price of 77 cents per flow-through share for total gross proceeds of approximately $6.5-million. The syndicate of underwriters for the offering was led by PI Financial Corp., and included Casimir Capital Ltd., Dundee Securities Ltd., Jennings Capital Inc., Fraser Mackenzie Ltd. and Paradigm Capital Inc. The offering was completed by way of a short form prospectus.

In addition, the company has completed its previously announced non-brokered private placement financing of 650,000 flow-through shares at the same issue price as the brokered offering of 77 cents per flow-through share for total gross proceeds of $500,500.

The net proceeds from the issuance of common shares under the offering will be used by Palliser to initially reduce bank indebtedness, finance the capital expenditures of the company and for general corporate purposes. Proceeds from the issuance of flow-through shares under the offering and the private placement will be used by Palliser to incur Canadian exploration expenses prior to Dec. 31, 2012. The company will renounce the qualifying expenditures to subscribers of the flow-through shares for the fiscal year ended Dec. 31, 2011.

We seek Safe Harbor.