TriOil Resources Announces 2013 Capital Budget and Business Plan and Appointment of a Special Committee

TriOil Resources Ltd. (“TriOil” or the “Company”) is pleased to announce that the Company’s Board of Directors has approved a capital expenditure program of $93 million for 2013 (the “2013 Capital Budget”). TriOil also announces that its Board of Directors have formed a committee of independent directors (the “Special Committee”) to conduct a strategic review of the Company’s business plan and to consider additional means to enhance shareholder value.

Capital Budget and Guidance

The 2013 Capital Budget will focus on the development of TriOil’s Cardium and Dunvegan light oil plays and provides continued production growth while maintaining the Company’s strong financial position. Approximately 45% of the 2013 Capital Budget will be directed to our Cardium light oil resource play at Lochend to drill 15 (8.9 net) Cardium horizontal wells and participate in an expansion of the recently constructed central oil battery. Kaybob will receive approximately 49% of the 2013 Capital Budget, with 11 (6.9 net) Dunvegan horizontal wells planned for the year and a strategic asset acquisition. The drilling and completion expenditure component of TriOil’s 2013 Capital Budget is projected to approximate $73 million, with the remaining budgeted funds of approximately $20.4 million allocated towards investments in well-site equipment, field facilities, gathering lines and strategic asset/undeveloped land acquisitions.

Based on execution of the capital program anticipated in the 2013 Capital Budget, average daily production for fiscal 2013 is projected to range from 3,900 to 4,100 boe/d, weighted approximately 75% light crude oil and NGLs. This forecasted production range represents an 83% to 93% increase (54% and 62% increase on a per share basis) over the Company’s 2012 average daily production estimate. The 2013 forecast exit production rate is expected to be approximately 4,400 boe/d, representing a greater than 25% increase from our 2012 exit rate of 3,450 boe/d.

The Company’s funds from operations for 2013 is estimated at $0.90 per basic share or $57 million in aggregate, which represents a significant increase of greater than 125% over projected 2012 funds from operations. Field operating netbacks (before hedging) for 2013 are forecasted at approximately $40/boe compared to the estimated $37/boe for 2012 as the Company’s oil weighting continues to increase and operating costs are further reduced.

The capital program planned in the 2013 Capital Budget will be financed by funds from operations and utilization of the Company’s existing credit facilities and allows TriOil to maintain its strong financial position. The Company’s year-end 2013 net debt is estimated at $60 million, approximately 1.1 times forecasted 2013 funds from operations and 1.0 times forecasted 2013 fourth quarter annualized cash flow. TriOil has a strong commodity hedge position in place to support the 2013 Capital Budget, with 1,300 bbls/d of crude oil hedged at a fixed weighted average price of C$99.51/bbl WTI from February-December 2013 and 1,000 gj/d of natural gas hedged at a fixed price of C$3.41/gj for 2013. The 2013 Capital Budget assumes current forward pricing assumptions of US$90.00/bbl WTI and AECO natural gas price of C$3.00/gj.

Business Plan

Consistent with the Company’s growth strategy, TriOil has acquired large undeveloped land positions in highly prospective emerging light oil resource plays and built the necessary production facilities and infrastructure to establish a strong operational presence in these plays. TriOil has executed this plan effectively and this strategy has proved very successful. With strong operational results in 2012 on the Company’s two proven light oil plays, a multi-year drilling inventory exceeding 130 net development locations and a significant investment in land, production facilities and infrastructure behind us, TriOil is poised to drive strong per share growth in 2013 and several years beyond.

TriOil’s first successful horizontal multi-stage, slick water completion in the higher impact Central/West Lochend Cardium light oil resource play came on production in mid 2011 and we announced our first successful horizontal multi-stage completion in the Kaybob Dunvegan light oil play in the fourth quarter of  2011. These two drilling events set the stage for the significant capital program we were able to execute in 2012. From a production base of 1,200 boe/d (50% oil and NGLs) in mid 2011, TriOil has grown production organically by 188% to 3,450 boe/d (70% oil and NGLs) at year end 2012 and we are forecasting continued strong growth to 4,400 boe/d (75% oil and NGLs) at year end 2013.

The Company is now well positioned on two top-tier light oil plays at Lochend and Kaybob. Both projects are delivering strong production growth, top-quartile netbacks and solid capital efficiencies and provide TriOil repeatable, scaleable light oil development drilling programs for the next several years.

Appointment of Special Committee of Independent Directors

TriOil also announces that its board of directors have formed a committee of independent directors to conduct a strategic review of the Company’s business plan.  The board of directors is committed to acting in the best interests of the Company and its shareholders.  The Company believes that the Company’s business plan and long term strategy will continue to provide value to shareholders.  The strategic review to be undertaken by the Special Committee will consider additional means to enhance shareholder value.

TriOil is a Calgary, Alberta based company engaged in the exploration, development and production of petroleum and natural gas. TriOil has approximately 64.0 million common shares issued and outstanding (70.1 million fully diluted). The common shares of TriOil trade on the TSX Venture Exchange under the symbol TOL.

Forward Looking Statements

This news release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “believe”, “plans”, “intends”, “confident”, “may”, “objective”, “ongoing”, “will”, “should”, “project”, and similar expressions are intended to identify forward-looking information. More particularly, this document contains forward looking statements which include, but are not limited to, expected future drilling and completion plans, expected production and reserves growth and expectations about the Company’s 2013 capital program.

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by TriOil, including with respect to the anticipated exploration and development opportunities and the outlook for the fiscal year ending December 31, 2012 and 2013, expectations and assumptions concerning the success of future exploration and development activities, production guidance, the performance of new wells, prevailing commodity prices and the availability of additional capital if and when required by the Corporation.

Although TriOil believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because TriOil can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in TriOil’s Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com and TriOil’s other public disclosure documents which have been filed on SEDAR and can be accessed at www.sedar.com.

The forward-looking statements contained in this press release are made as of the date hereof and TriOil undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Meaning of BOE

Disclosure provided herein in respect of barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation.  A boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.  Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6Mcf:1Bbl, utilizing a conversion on a 6Mcf:1Bbl basis may be misleading as an indication of value.

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