Mr. Gordon Reese reports

INVICTA ENERGY CORP. ANNOUNCES FIFTH CONSECUTIVE PROFITABLE QUARTER

Invicta Energy Corp. has released its financial and operating results for the three and nine months ended Sept. 30, 2012. Invicta's interim condensed financial statements and related management's discussion and analysis for three months and nine months ended Sept. 30, 2012, have been filed and are available on SEDAR and may also be obtained on Invicta's website.

Highlights of the third quarter

• Increased average oil production 49 per cent to 323 barrels per day (bbl/d) for third quarter 2012 from 217 bbl/d in second quarter;
• 150-per-cent increase in third quarter average oil production year over year;
• Achieved funds flow from operations of $1.5-million (two cents per share) and earnings of $500,000 (one cent per share) for the quarter; year-to-date funds flow from operations of $3.4-million (five cents per share) and earnings of $900,000 (one cent per share);
• Achieved top-quartile operating netback of $55.82 per barrel of oil equivalent (boe) year to date;
• Commenced the third quarter/fourth quarter drilling program of 11 gross (5.1 net) wells at Lucky Hills; four gross wells drilled and ready for completion at Sept. 30, 2012;
• On track to achieve exit light oil production of 535 bbl/d for 2012;
• Acquired over 14 sections of land on two Alberta light oil plays.

                                          HIGHLIGHTS
                                                                                      
                                                  Three months ended         Nine months ended  
                                                           Sept. 30,                 Sept. 30,    
                                                    2012        2011        2012          2011
Operations
Drilling
Oil wells (net)                                  4.0(2.2)    4.0(2.2)   15.0(8.2)      9.0(5.0)
Undeveloped landholdings (net acres)              51,900      35,852      51,900        35,852
Average daily production
Crude oil (bbl/d)                                    323         129         255            75
Natural gas (mcf/d)                                  383          92         388           237
Total equivalent (boe/d)                             387         145         320           114
Average product prices
Crude oil ($/bbl)                                 $81.95      $88.94      $83.33        $89.68
Natural gas ($/mcf)                                 2.14        3.78        1.96          3.75
Total equivalent ($/boe)                           70.57       81.88       68.83         66.46
Royalties ($/boe)                                   2.40        4.66        2.29          6.26
Production and operating costs ($/boe)             12.72       18.69       10.72         17.89
Operating netback ($/boe)                          55.45       58.53       55.82         42.31
Petroleum and natural gas revenue              2,512,220   1,008,530   5,999,320     2,084,380
Funds flow from operations                     1,477,238     458,900   3,423,353        85,395
Per share -- basic and diluted                      0.02        0.01        0.05          0.00
Earnings (loss)                                  489,477     114,227     829,180      (729,757)
Per share -- basic and diluted (loss)               0.01        0.00        0.01         (0.02)
Capital expenditures                           3,768,326   3,334,870   9,586,011     7,006,951
Net debt                                       9,265,490   2,404,474   9,265,490     2,404,474

Operations update

Kindersley (Lucky Hills) in Saskatchewan

Early in the third quarter the company completed and placed on production four wells from its second quarter program. In September four wells of the third quarter/fourth quarter Kindersley (Lucky Hills) drilling program were drilled. Subsequent to Sept. 30, 2012, an additional six wells were drilled, all at a 100-per-cent success rate. The completion and multistage fracking of the majority of these wells commenced after the quarter-end due to availability of frac services. Invicta is pleased to report that as of the date of this press release all wells have been completed and placed on production. During 2012, Invicta drilled a total of 21 gross (11.1 net) wells on this property.

Based on the last 10 wells of its recent drilling program, drilling costs have been reduced as a result of increased efficiencies. Invicta estimates that the all-in on stream costs of these horizontal wells are averaging $900,000 to $950,000. The oil production rates of the most recent program have exceeded the company's forecasted average type curve.

Invicta's two facilities have been expanded in third quarter and an additional one is being constructed to handle the additional production volumes from the recent drilling program. It is anticipated that one additional well will be drilled at 100-per-cent working interest prior to year-end on lands acquired in second quarter. Plans are currently under way for an active first quarter/second quarter 2013 program.

Since April, 2012, Invicta has transported up to 60 per cent of its production by rail in order to increase netbacks and mitigate a portion of the current differentials in Edmonton light to WTI (West Texas Intermediate). This process is expected to continue into 2013.

Central Alberta

A total of 14-1/4th sections of land were acquired during the third quarter in areas that industry has recently licensed and drilled horizontal Viking oil wells. The company plans to drill a test horizontal well in first quarter 2013 to test the extension of the existing Viking oil play.

Outlook

Invicta is very pleased with the growth it has achieved through third quarter and year to date in 2012. The third quarter results are on target and the company is on track to meet or exceed the year-end exit oil production of 535 bbl/d with added production from the third quarter/fourth quarter 11 gross (5.1 net) well drilling program. The company is forecasting the 2012 annual funds flow per share at eight cents per share and the annualized fourth quarter funds flow per share at 12 cents per share. The 2012 capital program was increased to $16-million due to the acquisition of additional acreage in Alberta and an increase in the number of wells drilled in the fourth quarter. Based on the recent drilling program, Invicta anticipated being granted the maximum lending value of $18-million within its existing agreement by year-end, or shortly thereafter.

The forecast for 2013 is based on drilling 25 gross (13 net) oil wells at Lucky Hills. The capital program of $15-million includes drilling two wells in the first quarter on the company's Alberta oil plays. The $15-million capital program is forecasted to be financed by funds flow and availability within the company's credit facility. Due to recent volatility in oil prices and differentials, the company has based the 2013 forecast on an $80 realized oil price. Invicta is forecasting average oil production of 620 bbl/d for 2013, a 107-per-cent increase year over year, while maintaining a debt-to-annualized-cash-flow ratio of less than 1.5:1. The company looks forward to increasing its forecast and capital budget if market conditions improve, production results at Kindersley continue to exceed type curve, and/or the success of the initial wells in Alberta.

The associated table summarizes revised 2012 guidance and the 2013 guidance.

                          GUIDANCE
        (In millions of dollars, except where indicated) 
                                           
                                   2012 guidance   2013 guidance 
      
Capital expenditures                         $16             $15             
Drilling program gross (net) wells        22 (12)         27 (15)           
Avg oil production bbl/d                     300             620             
Funds flow                                  $5.7           $11.7            
Per share                                  $0.08           $0.16            
Annualized fourth quarter 
funds flow                                  $9.1           $12.4            
Per share                                  $0.12           $0.16            
Year-end net debt                          $13.1           $16.6            

We seek Safe Harbor.