Mr. Brian Schmidt reports

TAMARACK VALLEY ENERGY LTD. ANNOUNCES $47 MILLION CAPITAL BUDGET FOR 2015

Tamarack Valley Energy Ltd.'s board of directors has approved the 2015 capital expenditure budget. Tamarack has always been a rate-of-return-driven company focused on drilling wells that target a return on capital cost payout of 1.5 years or less. With the current commodity price environment and current cost of services, the number of investment opportunities able to deliver these types of economic returns has been drastically reduced. Although Tamarack believes it has some of the most economic drilling prospects in the basin, management has prudently elected to significantly reduce its drilling program compared with 2014 in order to preserve capital, prospect returns and ensure an expedited return on future capital deployed. The company plans to limit its 2015 capital expenditure program to spending within cash flow and will back-end weight the capital program such that it will pay down debt during the first half of 2015 and maintain financial flexibility. Tamarack is prepared to adjust its capital budget accordingly to account for changes in commodity prices as the year progresses.

The 2015 capital budget and revised guidance are as follows:

• $47-million capital program with only $10.5-million being spent in the first half of 2015;
• 2015 average price assumptions: WTI $50 per barrel ($46 per barrel first quarter 2015, $54 per barrel fourth quarter 2015); Edm Par $51.60 per barrel; AECO $2.65 per gigajoule; 85 U.S. cents to $1;
• Production is estimated to average 8,000 barrels of oil equivalent per day in the first quarter of 2015 with a 60-per-cent weighting to oil and natural gas liquids. This forecast excludes behind-pipe volumes of approximately 1,205 barrels of oil equivalent per day and 435 barrels of oil equivalent per day shut in to preserve economics;
• Based on current strip pricing, the company expects to reduce net debt to approximately $116-million to $118-million by the end of the second quarter of 2015.

Operations update

Tamarack's operated oil battery in the Wilson Creek area of Alberta was back operating near capacity by mid-January, 2015, processing 3,700 to 3,800 barrels per day of oil. The company estimates it lost approximately 1,050 barrels of oil equivalent per day to its January, 2015, average with the downtime associated with a fire-tube failure disclosed on Jan. 2, 2015.

The company drilled two net Cardium horizontal oil wells in Wilson Creek in early January, 2015, bringing the total to three net Cardium horizontal oil wells that have already been drilled that are waiting to be fracture stimulated. Tamarack has elected to exercise fiscal prudence in this current commodity price environment, in order to preserve the company's high return on capital. These wells, combined with the Alder Flats well that has been shut in since the third quarter of 2014 due to facility constraints, will allow Tamarack to ramp up production when economic conditions improve. The company estimates it has approximately 1,205 barrels of oil equivalent per day behind pipe in the Wilson Creek/Alder Flats area.

Tamarack plans to use this period of reduced drilling activity to continue its initiative to reduce costs further and improve capital efficiencies.

Termination of investor relations agreement

Tamarack has agreed to mutually terminate the investor relations agreement with Renmark Financial Communications Inc. effective Jan. 28, 2015. The termination of the company's investor relations services is part of cost-cutting measures during the current low commodity price environment. Tamarack would like to thank the staff at Renmark for its support.

We seek Safe Harbor.