Mr. Richard Gonzalez reports

PETRO-VICTORY ENERGY CORP. ANNOUNCES PARTNERSHIP WITH AZEVEDO TRAVASSOS PETROLEO S/A TO DEVELOP ANDORINHA FIELD AND BLOCK POT-T- 281 IN BRAZILS POTIGUAR BASIN

Petro-Victory Energy Corp. has entered into a definitive option agreement and assignment of interest with Azevedo Travassos Petroleo S/A (ATP).

Azevedo Travassos Petroleo S/A (ATP) is a Brazilian company engaged in the exploration and production of crude oil and natural gas. ATP started its operations in the Potiguar basin in 1984, becoming the first Brazilian private company to explore oil and gas in the region. Currently, ATP enhances its portfolio of oil and natural gas production assets through merger and acquisition operations, acquisition of third party fields, and operational partnerships. Its parent company, Azevedo & Travassos S/A, is listed on the Brazilian Stock Exchange, trading its shares under the tickers AZEV3 and AZEV4.

The agreement signed between Petro-Victory and ATP includes a work program to be carried out on two 100-per-cent-owned and operated Petro-Victory concessions located in the Potiguar basin, in the state of Rio Grande do Norte, the Andorinha field and POT-T-281 block.

ATP will pay 100 per cent of the work program, which initially consists of drilling and completing the AND-4 and AND-5 wells in the Andorinha field and a workover in the CR-2 well located in the POT-T-281 block.

ATP will receive 75 per cent, Petro-Victory will receive 25 per cent of the net income generated by the production of these wells, until the capex for the work program provided by ATP is fully recovered. Thereafter, the net income generated by the production of these wells will be split 50 per cent to each company.

Petro-Victory remains operator of the Andorinha field and the POT-T-281 block. ATP may, at its sole discretion, offer its engineering services, construction and assembly of oil production facilities and well drilling, completion and maintenance services.

The agreement also establishes the commitment to hire a third party independent engineering firm to certify the reserves of the Andorinha field and the POT-T-281 block after the completion of the work program. ATP will have an option to buy 50 per cent of both assets at a predetermined price of $10 (U.S.) per barrel of proven reserves and $4 (U.S.) per barrel of probable reserves. This option must be exercised within nine months from today's date, provided that this period is sufficient to finalize the new reserve report after the completion of the work program.

The partnership between Petro-Victory and ATP creates potential for growth and further developments with the aim of extending market reach and capturing new synergies between the two companies and their operating assets.

About Petro Victory Energy Corp.

Petro Victory Energy is engaged in the acquisition, development and production of crude oil and natural gas resources in Brazil. The company holds 100-per-cent operating and working interests in 41 licences totalling 272,912 acres in two different producing basins in Brazil. Petro-Victory generates accretive shareholder value through disciplined investments in high-impact, low-risk assets. The company's common shares trade on the TSX Venture Exchange under the ticker symbol VRY.

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