Mr. Eric Laing reports

RAISE PRODUCTION INC. ANNOUNCES 2013 FINANCIAL RESULTS AND OPERATIONS UPDATE

Raise Production Inc. has released its financial results for the year ended Dec. 31, 2013.

President's update

The company is pleased to update shareholders on activities in the company and on the progress of the horizontal wellbore production system.

"We are embarking on a next phase of development now that we have accomplished some significant milestones over the last few months. Since our last quarterly review the company has:

• "Deployed and operated a commercial-type system;
• "Performed repeated retrievals and deployments of the system in close-tolerance wellbores without incident;
• "Proven that the system will allow better and more efficient completion designs that will reduce existing rod and tubing wear and provide better control of production characteristics, such as pumpjack strokes per minute while increasing vertical pump efficiency and production rate;
• "Performed repeatable intermittent testing of the system that indicated access to less depleted areas of the wellbore and increased flow rates from those areas (these tests were performed over short periods of time and should not yet be extrapolated into expected production rates; extended tests will be required to substantiate and prove the sustainability of the initial flow rates, future production decline profiles and system longevity);
• "Progressed through start-up challenges and compiled procedures based on lessons learned; although time-consuming, these efforts will allow for more efficient and faster start-up periods for future deployments; these procedures now become an inherent part of the intellectual and proprietary property of the company;
• "Substantiated a majority of our theories regarding flow in horizontal wellbores.

"To prove sustainability of flow rates, we will resume and complete shorter-term testing of the system at our industry partner site, after breakup and road bans are lifted. Once we have sustained production rates, we will, with concurrence from our partner, determine a suitable time period for monitoring sustainability and decline rate profiles. Results to date are encouraging, but no assurances can be given about system performance or commercial viability.

"The company is excited to be in negotiations for the deployment of an additional system into another Viking reservoir in Alberta. This diversification of geography will lead to more insight into how the formation responds to our system in a different area. We are also continuing to perform suitability testing on an oil sample from a third client in the Slave Point formation.

"We are cautiously optimistic regarding the outcome of our initial well deployment, but we remain realistic and pragmatic regarding the applications, performance, timeline to build and expected results from our technology. We urge our shareholders to be aware that there is still an enormous amount of development to be done to have this system and subsequent iterations become commercial over a wide range of horizontal wellbores. The existing deployment is in a low-productivity wellbore that has transitioned well through its flush rates of production. Short-term changes in flow rates cannot be extrapolated as applicable in other wells, reservoirs or earlier stages of production.

"Looking forward, the company is beginning its planning for commercial operations and will continue to recruit additional staff to ramp up manufacturing and seek new avenues for supply of material and finished products to be ready for commercial deliveries. Moreover, the company is also acutely aware of the need for continuous development of the system to meet other more demanding applications such as deeper, higher temperature and higher volume wellbores.

"In closing, I am pleased and very proud of our committed and talented team. We have made tremendous advances to our technology over the last year. We have worked through a number of challenges, many of which were unforeseen, but that is the nature of research and development. I am sure we will face more obstacles as we transition to commercialization. The potential for this system is significant, but so too are the effort and time required to realize this goal."

Results of operations

              STATEMENT OF LOSS AND COMPREHENSIVE LOSS
            
                                                     Years ended Dec. 31,
                                                    2013            2012

Revenue                                         $289,549        $198,310
Cost of sales                                    162,778         228,377
Gross margin (loss)                              126,771         (30,067)
Expenses
General and administration                     1,418,631       1,804,349
Stock-based compensation                         475,598         775,068
Research expenses                                275,782         614,864
Inventory impairment                             221,915         751,436
Depreciation and amortization                    166,453         131,812
Loss on disposal of assets                       123,589          73,024
Finance costs                                     38,232           4,757
Total                                          2,720,200       4,155,310
Net (loss) and comprehensive (loss)          $(2,593,429)    $(4,185,377)
Net (loss) per share -- basic and diluted         $(0.04)         $(0.11)

Raise's full audited financial statements and management's discussion and analysis will be filed shortly on the company's profile on the SEDAR website.

We seek Safe Harbor.