Mr. Songning Shen reports

CAITERRA INTERNATIONAL ENERGY CORPORATION PROVIDES YEAR-END UPDATE

Caiterra International Energy Corp. has provided a year-end update. It has appointed Perla Woo as president of the company, and filed its financial and operating results as at, and for the year ended, Sept. 30, 2014, and its National Instrument 51-101F1 reserves report.

Corporate and operations update

Faust

Since the company's acquisition of its 39.5 gross (19.75 net) sections prospective Bluesky Faust property, it has continued to evaluate and test this property's Bluesky sand oil zone potential. Over the past year, the company has commenced drilling operations on three wells on this property. The first horizontal well encountered pay, but a workover program has been proposed to deal with the production casing not being able to be landed at depth. The second horizontal well also encountered pay, but Caiterra and its working interest partner are currently evaluating the drilling and log data to determine the future course of action for this well as drilling tools have been left in the hole. This well is now suspended. A third well, which is a vertical well, was drilled for lease preservation purposes but found insignificant pay, and Caiterra is currently preparing an application to convert this well into an injection well for a potential future EOR (enhanced oil recovery) scheme.

Caiterra's working interest partner recently issued two independent notices to drill two title preservation wells on leases covering 1.25 gross (0.675 net) sections of land. After evaluating the prospect, Caiterra has elected not to participate in these operations due to present economic conditions and possibility of operational risk, which may result in the potential forfeiture of Caiterra's working interest in these 1.25 gross (0.675 net) sections of land.

Sousa and Cygnet

During the year, Caiterra acquired leases covering a total of 53 sections of prospective oil and gas lands in Northern Alberta and central Alberta. Caiterra continues to evaluate these two properties with a view of drilling horizontal wells in Cygnet. Management believes that the Sousa property holds significant potential for both conventional and unconventional resources.

Appointment of Ms. Woo as president

The directors of Caiterra are also pleased to announce that Perla Woo, PEng, of Calgary, Alta., has accepted the appointment to the position of president of the company. Ms. Woo brings over 20 years of successful experience in the petroleum industry in the fields of reservoir engineering, exploitation and pressure transient analysis. She was a co-founder of Sunshine Oilsands Ltd. and a member of senior management at the company for a number of years. Prior to this appointment, Ms. Woo held the position of vice-president, operations, at the company. Songning Shen, chief executive officer of the company, said: "I am pleased to announce the appointment of Perla Woo as the president of Caiterra. I have the utmost confidence that Ms. Woo will contribute to the successful growth of the company as we forge ahead with our plans to explore, develop and expand our assets."

David Wu has resigned his position as president of the corporation in connection with Ms. Woo's appointment. Mr. Wu will continue to serve as the chairman of the board of directors and as an independent director.

Financial update, audited financial statements, management discussion and analysis, and reserves report

Caiterra has filed with Canadian securities regulatory authorities its audited financial statements and accompanying MD&A for the three months and year ended Sept. 30, 2014. Caiterra has also filed the company's NI 51-101F1 reserves report as at Sept. 30, 2014. These filings are available for review on SEDAR.

Amadou impairment

Based on an assessment of indicators of impairment performed at Sept. 30, 2014, an impairment test was completed on the company's assets in production and evaluation assets. As a result of the impairment test, the company recorded an impairment of $3,109,830 in impairment charges for the Amadou and Lac La Biche property based on management estimates and reserve information.

Completion of private placement

Caiterra also confirms the conclusions of its December, 2014, private placement, pursuant to which it issued an aggregate of 2.54 million common shares on a flow-through basis pursuant to the Income Tax Act (Canada) at a price of 25 cents per flow-through common share for gross proceeds of $635,000. Caiterra paid an aggregate of $28,750 in finders' fees in connection with the private placement.

We seek Safe Harbor.