Mr. Patrick Montalban reports

MOUNTAINVIEW ENERGY LTD. PROVIDES OPERATIONAL UPDATE ON ITS 12 GAGE PROJECT IN THE WILLISTON BASIN

Mountainview Energy Ltd. is providing an operational update.

Operational update -- 12 Gage project, Wigness 5-8-1H, sections 5 and 8, T162N-101 west, Divide county, North Dakota

On Nov. 14, 2012, Mountainview spudded the Wigness 5-8-1H well, the first Bakken/Three Forks well of Mountainview's planned three-well winter drilling program on its 12 Gage project. The seven-inch intermediate casing for the Wigness well was successfully set to a landing point of 8,530 feet, and the well subsequently reached total depth of 18,280 feet. The company successfully ran the 4.5-inch liner to the total depth and is preparing the Wigness well for a 26-stage fracture stimulation. Total operational days from spudding the well to setting the 4.5-inch liner were 19 days. Mountainview plans to complete the Wigness well by the end of December, 2012.

Through its wholly owned subsidiary Mountain Divide LLC, the company holds a 93.75-per-cent working interest in the Wigness well, 25 per cent of which is subject to reversion to another working interest owner following payout of 100 per cent of the cost of its proportionate working interest costs in the well plus a 200-per-cent penalty. Pursuant to Mountain Divide's previously announced credit facility, all of Mountain Divide's oil and gas properties located in Divide county, North Dakota (including the lands in the 12 Gage project), are subject to a 39-per-cent after-payout net profits interest (NPI) held by Mountain Divide's lender under the facility. The NPI is defined as all revenues received by Mountain Divide, less all operating costs, production taxes and capital costs incurred by Mountain Divide. Payments on the NPI shall commence upon repayment in full of the outstanding facility. Pursuant to the agreements underlying the facility, the NPI will automatically reduce to 20 per cent once the lender achieves a 1.65 times return on investment.

Leininger 3-10-1H, sections 3 and 10, T162N-R101 west, Divide county, North Dakota

Mountainview is currently rigging the Nabors 460 rig down and is preparing to move the rig to the Leininger 3-10-1H well location. The Leininger well is the second Bakken/Three Forks well planned for the three-well winter drilling program on Mountainview's 12 Gage project. This well has been permitted and the location is built. The Leininger well is located approximately two miles east of the Wigness well, and Mountainview expects to spud the Leininger well on or about Dec. 9, 2012. Through Mountain Divide, the company holds an 88.28-per-cent working interest in the Leininger well, 3 per cent to 4 per cent of which is subject to reversion to another working-interest owner following payout of 100 per cent of the cost of its proportionate working interest costs in the well plus a 200-per-cent penalty. The Leininger well is also subject to the NPI.

Olson 35-26-1H, sections 35 and 26, T163N-R101W, Divide county, North Dakota

The company has received approval from the North Dakota Industrial Commission to drill the Olson 35-26-1H well, which will be the final well planned for the three-well winter drilling program on Mountainview's 12 Gage project. The Olson well is located approximately two miles to three miles northeast of the Leininger well. Through Mountain Divide, the company holds a 52.23-per-cent working interest in the Olson well, which is also subject to the NPI.

12 Gage regional activity update

As previously stated, there are currently at least five operators developing the Middle Bakken and Three Forks formations near the 12 Gage project: American Eagle Energy Corp., SM Energy Co., Samson Resources, Crescent Point Energy Corp. and Baytex Energy Corp. All of the following operators are continuing their development of the Bakken/Three Forks play near the 12 Gage project. Along with these operators, Divide county, North Dakota, has also seen recent merger-and-acquisitions activity, with Continental Resources and Magnum Hunter Resources each making acquisitions in the area. The table illustrates the recent drilling activity that has been made public by the relevant company or regulatory authorities.

Company                        Well                                  Status

SM Energy             Legaard 4-25H  Completed October, 2011; 20-stage frac
SM Energy              August 4-26H               Confidential -- producing
SM Energy           Leininger 3-10H               Confidential -- producing
SM Energy              Carter 9-8HW          Initial production -- 401 bopd
                       Christianson
American Eagle        15-12-163-101                                Complete
American Eagle   Cody 15-11-163-101                                Complete
American Eagle    Anton 3-4-163-101                                Complete

Notes:
(1) Information in this table was obtained from public sources.
(2) The information provided did not provide a breakdown of oil, gas and
water amounts that make up these production numbers, nor was any further
information about the tests made available.

Non-operational update -- Williston basin

To date the company has participated in 10 (gross) Bakken/Three Forks wells in the Williston basin. The table lists the wells and their current status, which is the last available month's average daily production.

                                                                                         
                                                     Working        Well status
Operator                      Well name             interest               bopd

G3 Operating             Olson 1-21-16H                12.5%                 92
SM Energy                 Wolter 13-23H                3.25%                273
Hess                     Strahan 15-22H                .625%                120
Petro-Hunt      Miller 157-101-12C-1-1H                .787%                112
Samson                Zuma 15-22-35-58H                9.75%                 31
Samson            Riva Ridge 6-7-33-56H  Approximately 3.24%                 81
American Eagle        Anton 3-4-163-101                3.38%  Confidential list
Zavanna                Panther 16-21-1H            2.200533%                432
Zavanna                  Jaguar 1-22-1H                1.01%                358
Zavanna                Leopard 20-17-1H                1.01%                520

We seek Safe Harbor.