Hemisphere Energy Closes Bought Deal Equity Financing

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Dec. 10, 2013) –

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Hemisphere Energy Corporation (“Hemisphere” or the “Company”) (TSX VENTURE:HME) is pleased to announce that it has closed the bought deal equity financing announced on November 21, 2013 (the “Offering”). The Company issued 4,182,550 units, comprised of one common share and one half of one warrant of Hemisphere (together, the “Units”) at a price of $0.55 per Unit and 3,077,000 common shares to be issued on a “CEE flow-through” basis (the “CEE Flow-Through Shares”) at a price of $0.65 per CEE Flow-Through Share for aggregate gross proceeds of $4,300,453. Each whole warrant will entitle the holder to acquire one common share of the Company at a price of $0.75 per common share expiring 12 months after the closing of the Offering.

The Offering was underwritten by a syndicate of underwriters led by Canaccord Genuity Corp. and including Integral Wealth Securities Ltd. and MGI Securities Inc.

Hemisphere will use the net proceeds from the Offering to accelerate its capital program focused on the Company’s Jenner core area and its newly acquired Atlee Buffalo play, as well as for general corporate purposes.

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Hemisphere Energy Corporation

Hemisphere is an oil and gas exploration and production company focused on developing core areas that provide low to medium risk drilling opportunities to increase production, reserves and cash flow. Hemisphere’s continued growth plan is through drilling existing prospects and executing strategic acquisitions and farm-ins. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “HME”.

Please visit Hemisphere’s website at www.hemisphereenergy.ca for our updated corporate presentation.

Forward-looking Statements

This news release contains “forward-looking statements” that are based on Hemisphere’s current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding use of proceeds, Hemisphere’s outlook for our future operations, plans and timing for the commencement or advancement of exploration and development activities on our properties, and other expectations, intention and plans that are not historical fact. The words “estimates”, “projects”, “expects”, “intends”, “believes”, “plans”, or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Many of these factors are beyond the control of Hemisphere. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by Hemisphere will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking statements. Hemisphere disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.