Mr. Jim Evaskevich reports

YANGARRA ANNOUNCES FIRST QUARTER 2013 FINANCIAL AND OPERATING RESULTS

Yangarra Resources Ltd. has released its financial and operating results for the three months ended March 31, 2013.

Highlights of the quarter ended March 31, 2013, are as follows:

• Production was 1,809 barrels of oil equivalent per day (47 per cent oil and natural gas liquids) with production negatively impacted by 200 boe per day shut in due to the drilling of new wells on existing pad sites.
• Oil and gas sales including royalty income was $7.7-million with funds flow from operations of $4.8-million (four cents per share -- basic).
• Operating costs for the first quarter, including 96 cents per boe of transportation costs, were $9 per boe.
• The first quarter 2013 netback of $34.34 per boe is a 16-per-cent increase from the $29.66 per boe reported in the first quarter or 2012. Realized prices were $42.68 per boe up 28 per cent from $33.30 per boe in the first quarter of 2012 (realized natural gas prices increased by 63 per cent).
• Capital expenditures of $11-million focused on drilling and infrastructure in central Alberta.
• As at March 31, 2013, the company had a bank debt and working capital deficit of $42-million compared with $34-million at Dec. 31, 2012.
• Yangarra constructed a gas-processing facility (100-per-cent working interest) in the quarter with the facility on-line April 10, 2013, which brought on eight previously standing wells.

                                  FINANCIAL SUMMARY   
                                                                     Q1                    Q1
                                                                   2013                  2012
Statements of comprehensive income (loss)
Petroleum and natural gas sales                      $        6,518,381   $         6,907,412
Net income (loss) for the period (before tax)        $         (393,286)  $          (983,334)
Net income (loss) for the period                     $         (259,424)  $        (1,790,789)
Net income (loss) per share -- basic and diluted     $            (0.00)  $             (0.02)

                               OPERATIONS SUMMARY                             
                                                                     Q1                Q1
                                                                   2013              2012
Daily production volumes
Natural gas (Mcf/d)                                               5,090             6,018
Oil (bbl/d)                                                         502               438
NGLs (bbl/d)                                                        291               347
Royalty income
Natural gas (Mcf/d)                                                 709             1,481
Oil (bbl/d)                                                           2                12
NGLs (bbl/d)                                                         48                91
Combined (boe/d 6:1)                                              1,809             2,139
Product pricing
(includes royalty income and realized gains/losses on commodity contracts)
Oil ($/bbl)                                            $          86.80   $         89.86
NGL  ($/bbl)                                                      52.62             63.87
Gas ($/Mcf)                                                        3.41              2.09
Combined ($/boe)                                       $          44.95   $         37.61
Revenue
Petroleum and natural gas sales -- gross               $      6,518,381   $     6,907,412
Royalty income                                                  369,338           839,177
Commodity contract settlement                                   430,418          (425,781)
Total sales                                                   7,318,137         7,320,808
Royalty expense                                                (261,092)         (446,817)
Petroleum and natural gas sales -- net                 $      7,057,045   $     6,873,991
Change in fair value of contracts                            (2,185,484)       (1,819,208)
Total revenue -- net                                   $      4,871,561   $     5,054,783

We seek Safe Harbor.