Mr. Richard Walls reports

MAPAN ENERGY LTD. ANNOUNCES 2014 YEAR-END RESERVES, OPERATIONS UPDATE AND EXECUTIVE APPOINTMENT

Mapan Energy Ltd. has released its 2014 year-end reserves. Mapan's independent reserve report was prepared by GLJ Petroleum Consultants in accordance with National Instrument 51-101 (standards of disclosure for oil and gas activities) with an effective date of Dec. 31, 2014.

Highlights:

• The company's proved reserves increased from the March 31, 2014, report by 19 per cent from 12.58 million barrels of oil equivalent to 15 million boe at year-end Dec. 31, 2014.
• Proved plus probable reserves increased by 27 per cent from 15.16 million boe to 19.18 million boe.
• Proved producing reserves are 12.64 million boe. Proved producing reserves represent 84 per cent of all proved reserves and 66 per cent of all proved plus probable reserves.
• Technical revisions increased proved reserves by 2.42 million boe. The majority of the upward technical revisions is due to improved performance of the producing wells.
• The net present value of future net revenue attributable to the reserves (before tax) discounted at 10 per cent is $117.6-million for the proved reserves and $144.5-million for the proved plus probable reserves.
• The undiscounted, total future development capital for the proved plus probable reserves is $34.0-million.
• The company's proved and proved plus probable reserves are composed of 94 per cent natural gas and 6 per cent oil and natural gas liquids.
• The reserves are based on the independent reserve report prepared by GLJ, effective March 31, 2014, in respect of the reserves acquired by the company on the acquisition of certain oil and natural gas properties on July 31, 2014. Unlike the GLJ report, the reserves in the March report do not include relatively minor reserves attributable to the properties that were held by the company prior to the acquisition.

Operations

On Jan. 20, 2015, shut-in production from Mapan's properties in the Deep basin north, processed at the Elmworth gas plant, came back on-line as Trans Canada Pipeline lifted production restrictions on its natural gas transmission pipeline system at Elmworth and put back into service a 30-inch pipeline in this area. Company production of approximately nine million cubic feet per day (1,500 barrels of oil equivalent per day) had been shut in for 137 days due to this outage on NGTL. Mapan's current production is approximately 6,100 boe per day. Approximately 600 to 700 boe per day remain shut in due to current, continuing inspections, repairs and outages on the NGTL system, well downstream of Mapan's producing properties. These new production restrictions on the NGTL system are expected to last several weeks.

                     SUMMARY OF OIL AND GAS RESERVES

Effective date:   Light and medium   Natural gas                    Total oil
Dec. 31, 2014              oil         liquids      Natural gas    equivalent
                      Gross    Net  Gross    Net   Gross    Net  Gross    Net
Reserve category      (Mbbl) (Mbbl) (Mbbl) (Mbbl)  (MMcf) (MMcf) (Mboe) (Mboe)

Proved
Developed
producing                56     43    556    365  72,141 65,612 12,635 11,343
Developed non-
producing                --     --     53     38   2,549  2,345    478    429
Undeveloped              --     --    209    164  10,082  9,577  1,889  1,760
Total proved             56     43    818    567  84,772 77,534 15,002 13,533
Probable
Total probable           18     13    264    185  23,351 21,382  4,174  3,762
Total proved plus
probable                 74     57  1,082    752 108,123 98,916 19,176 17,295

            SUMMARY OF NET PRESENT VALUE OF FUTURE NET REVENUE

                                     Before income tax discounted at (%/yr)
                                      0%       5%      10%      15%     20%
Reserve category                    (M$)     (M$)     (M$)     (M$)    (M$)
Proved
Developed producing            $174,224 $137,649 $113,223  $96,097 $83,574
Developed non-producing           4,815    3,541    2,649    2,011   1,544
Undeveloped                      15,540    6,781    1,696   -1,416  -3,405
Total proved                    194,578  147,971  117,568   96,692  81,712
Probable
Total probable                   73,949   42,564   26,975   18,466  13,426
Total proved plus probable      268,527  190,535  144,542  115,157  95,139

                                      After income tax discounted at (%/yr)
                                      0%       5%      10%      15%     20%
Reserve category                    (M$)     (M$)     (M$)     (M$)    (M$)
Proved
Developed producing            $160,047 $126,754 $104,588  $89,075 $77,738
Developed non-producing           3,589    2,584    1,875    1,367     995
Undeveloped                      12,271    4,763      405   -2,262  -3,968
Total proved                    175,908  134,102  106,869   88,180  74,765
Probable
Total probable                   57,913   32,787   20,483   13,844   9,949
Total proved plus probable      233,821  166,888  127,352  102,024  84,715

            RECONCILIATION OF GROSS RESERVES (BEFORE ROYALTIES)
                         BY PRINCIPAL PRODUCT TYPE

                               Light and medium oil           Natural gas
                                           Proved +                  Proved +
                           Proved Probable probable  Proved Probable probable
Factors                     (Mbbl)   (Mbbl)   (Mbbl)  (MMcf)   (MMcf)   (MMcf)

March 31, 2014                 76       30      106  71,875   14,692   86,567
Technical revisions            -9      -12      -21  13,043    3,208   16,251
Infill drilling                --      -11      -11  10,082    5,452   15,534
Production                    -11       11       -- -10,228       --  -10,228
Dec. 31, 2014                  56       18       74  84,772   23,351  108,123

                              Natural gas liquids       Total oil equivalent
                                           Proved +                  Proved +
                           Proved Probable probable  Proved Probable probable
Factors                     (Mbbl)   (Mbbl)   (Mbbl)  (Mboe)   (Mboe)   (Mboe)

March 31, 2014                524      101      625  12,579    2,579   15,158
Technical revisions           160       50      211   2,325      573    2,898
Infill drilling               209      113      322   1,889    1,022    2,911
Production                    -76        0      -76  -1,791        0   -1,791
Dec. 31, 2014                 818      264    1,082  15,002    4,174   19,176

Pricing

GLJ employed pricing, exchange rate and inflation rate assumptions as of Dec. 31, 2014, in the GLJ report in estimating the net present value of the future net revenue attributable to the reserves. Actual wellhead prices received by the company may vary due to transportation charges and product quality adjustments.

              PRICING, EXCHANGE RATE AND INFLATION RATE
                                                            Pen-
                                             Pro-         tanes
              Natural gas  Light crude oil  pane Butane    plus
            Henry                   Edmon- Edmon- Edmon-  Edmon-  Infla-     Ex-
              Hub    AECO     WTI     ton    ton    ton     ton    tion  change
Year                                                              rates    rate
forecast    ($U.S./ ($Cdn/  ($U.S./ ($Cdn/ ($Cdn/ ($Cdn/  ($Cdn/     (%/  ($U.S./
            MMBtu)  MMBtu)    bbl)    bbl)   bbl)   bbl)    bbl)   year)   $Cdn)

2015        $3.31   $3.31  $62.50  $64.71 $19.63 $52.91  $69.24     2.0  $0.850
2016         3.75    3.77   75.00   80.00  32.00  60.80   85.60     2.0   0.875
2017         4.00    4.02   80.00   85.71  38.57  65.14   91.71     2.0   0.875
2018         4.25    4.27   85.00   91.43  41.14  69.49   97.83     2.0   0.875
2019         4.50    4.53   90.00   97.14  43.71  73.83  103.94     2.0   0.875
2020         4.75    4.78   95.00  102.86  46.29  78.17  110.06     2.0   0.875
2021         5.00    5.03   98.54  106.18  47.78  80.70  113.62     2.0   0.875
2022         5.25    5.28  100.51  108.31  48.74  82.31  115.89     2.0   0.875
2023         5.50    5.53  102.52  110.47  49.71  83.96  118.20     2.0   0.875
2024         5.68    5.71  104.57  112.67  50.70  85.63  120.56     2.0   0.875
There-
after      +2%/yr  +2%/yr  +2%/yr  +2%/yr +2%/yr +2%/yr  +2%/yr     2.0   0.875

Corporate presentation

Mapan has updated its corporate presentation to reflect the year-end 2014 reserves, which can be found on its website.

Executive appointment

Mapan is pleased to announce the appointment of Colin Taylor to the position of vice-president, land. Mr. Taylor has over 10 years of industry experience and will be a key addition to the Mapan team.

We seek Safe Harbor.