Mr. Lee Pettigrew reports

MOBIUS RESOURCES ANNOUNCES RELEASE OF THIRD QUARTER 2014 FINANCIAL RESULTS AND PROVIDES AN UPDATE ON ACTIVITIES

Mobius Resources Inc. (formerly Zodiac Exploration Inc.) has filed its financial statements and management's discussion and analysis for the three months ended June 30, 2014, on SEDAR.

During the third quarter of the 2014 fiscal year, Mobius:

• Continued evaluation of the Duvernay formation in the Snipe Lake area of Alberta and has subsequently obtained an initial well licence;
• Completed the sale of approximately 4,285 net acres of land in the San Joaquin basin for gross proceeds of approximately $1,400 (U.S.), the reimbursement of approximately $150 (U.S.) of previous land lease payments, and relief from a drilling obligation of approximately $950 (U.S.), which had previously been reflected on the company's balance sheet; Mobius will retain overriding royalty interests in the land of up to 2 per cent;
• Continued its continuing efforts to seek out partners to jointly develop Mobius's land or monetize the California properties through discussions with several companies;
• Drilled an exploration well in Montana; based on the results of the well and subsequent reinterpretation of the seismic data, the company has decided not to drill a second exploration well necessary to earn an interest in the Montana acreage;
• Recognized asset impairments of $33,700 related to its assets in California ($27,709), Montana ($3,135) and Nova Scotia ($2,856);
• Ended the quarter with a cash balance of $9,265 and a working capital balance of $10,302.

 
                                  FINANCIAL HIGHLIGHTS 
                                (in thousands of dollars)

                                      Three months ended        Nine months ended
                                    June 30,     June 30,     June 30,    June 30,
                                       2014         2013         2014        2013  
      
Revenue and other income                 23           25        3,446          97          
Net income (loss)                   (34,669)      (1,145)     (55,157)     (3,562)     
Funds from (used) in operations(1)   (1,821)        (873)        (357)     (2,730)     
Capital expenditures                    (30)         625        2,347       1,597 

Note: Funds from (used) in operations as presented does not have any 
      standardized meaning prescribed by generally accepted accounting 
      principles and, therefore, may not be comparable with the calculation 
      of similar measures presented by other entities. See non-GAAP measures.

Outlook

Mobius's technical team continues its work on the Duvernay play in Alberta aimed at selecting its first two drilling locations for the fall of 2014. The company has received a well licence and anticipates spudding its first Duvernay well in September, 2014, or October, 2014. The company is continuing its efforts to seek out partners to jointly develop Mobius's land or monetize the California properties. A successful transaction would allow the company to redeploy capital for exploration on its Alberta properties.

We seek Safe Harbor.