Mr. Ronald Wiebe of Standard reports

STANDARD EXPLORATION LTD. AND CANADIAN ENERGY EXPLORATION INC. JOINTLY ANNOUNCE THE COMPLETION OF THE PREVIOUSLY ANNOUNCED ACQUISITION OF CANADIAN ENERGY EXPLORATION INC.

Standard Exploration Ltd. has successfully closed the previously announced (on Aug. 20, 2012) acquisition of Canadian Energy Exploration Inc. by way of plan of arrangement pursuant to the provisions of the Business Corporations Act (Alberta). Pursuant to the arrangement, Standard acquired all of the issued and outstanding common shares of Canadian Energy (whereby each Canadian Energy share was exchanged for 0.13986 of a common share of Standard). Standard issued a total of 17,978,619 Standard shares for the acquisition of all of the issued and outstanding Canadian Energy shares. After the completion of the arrangement, there are 81,430,907 Standard shares issued and outstanding on a non-diluted basis.

As a result of the completion of the arrangement, Canadian Energy is now a wholly owned subsidiary of Standard. Each of the former officers and directors of Canadian Energy have resigned from Canadian Energy and, pursuant to the arrangement, Standard has appointed John McGilvray, previously a member of the board of directors of Canadian Energy, to the board of directors of Standard.

In addition, options to acquire Canadian Energy shares and warrants to acquire Canadian Energy shares shall, in accordance with their respective terms, cease to constitute a right to acquire Canadian Energy shares and shall now constitute a right to acquire Standard shares (as adjusted by the exchange ratio). Standard and Canadian Energy anticipate that the Canadian Energy shares will be delisted from trading on the TSX Venture Exchange within two to three business days.

Standard is in a position to continue its focus on mergers/acquisitions and continue to develop drilling opportunities. Standard currently has:

• $6.5-million in cash;
• $6.2-million proved plus probable reserves, discounted at 10 per cent, effective March 31, 2012;
• 75 barrels of oil equivalent per day to 80 barrels of oil equivalent per day, of which 90 per cent is oil;
• Net operating income estimate of $65,000 per month or $780,000 per annum.

In the very near term (to the end of 2012), Standard plans to spend $1.3-million on drilling and seismic activities to fulfill a flow-through obligation of Canadian Energy.

Sayer Securities Inc. acted as exclusive financial adviser to Canadian Energy with respect to the arrangement.

The arrangement has been conditionally accepted by the TSX Venture Exchange. Final acceptance of the TSX Venture Exchange is subject to the satisfaction of a number of customary conditions.

We seek Safe Harbor.