Exile Resources Inc.

Exile Resources Inc.

October 13, 2009 12:05 ET

(1) Sogenal Ltd (Oil and Gas Company), Exile Resources Inc. and Oando Granted Approval of Farm Out Agreement for Akepo Project, (2) Project Update

TORONTO, ONTARIO--(Marketwire - Oct. 13, 2009) -


Sogenal Limited (Oil and Gas Company) ("Sogenal") Operator of the Akepo Field, Oando Exploration and Production Limited ("OEPL" or "Oando") and Exile Resources Inc. (TSX VENTURE:ERI) ("Exile") today announced that they have received approval from the Nigerian Ministry of Petroleum Resources for Exile's farm out ("Agreement") with OEPL, previously announced on January 5, 2009, whereby OEPL can acquire a 75% working interest in Exile's 40% interest in the Akepo field (OML 90) in return for funding Exile's past costs, and financing the future development of the project.

Otunba Funso Lawal, Chairman of Sogenal, commented, "This is a remarkable milestone in the Akepo development, a further confirmation of Akepo's viability in terms of recoverable reserves and future prospects. We are delighted that with Sogenal as Operator and Oando/Exile, as partners, the project is making remarkable progress. The partnership is at advanced stage of its operation; and it is a further demonstration of the confidence in the team, that we now have ministerial approval to proceed with our plans to develop the Akepo Field."

Babatunde Ogunnaike, Managing Director of OEPL, commented, "We are very excited that we have got the nod to proceed with the farm out agreement. OEPL has a very clear plan to develop the Akepo field and is collaborating well with Exile and Sogenal to make this a reality." He added, "OEPL is fast building a world class Exploration and Production Company, with a diverse portfolio of assets with the full complement of resources from the Oando group of companies."

Tony Henshaw, President and CEO of Exile, explained, "This is a very welcome development - the Ministry's approval is the last major hurdle in finalizing the farm out agreement".

The farm out terms have worked very well and Oando has fulfilled its obligations to date by paying the 1st tranche reimbursement on Exile's past development expenses on the Akepo Project. This milestone will allow Oando to reimburse Exile for the next tranche of its past expenses. The work of the partnership (Sogenal-operator, Oando and Exile) is now focused, as it has been for the last few months, on the development of the Akepo Field through re-entry of the existing Akepo-1 well, to immediately start converting the project plans into reality. The Noble Rig, Lloyd Noble has been contracted and is due on location in the last week of October, 2009, and the testing programme is anticipated to take 40 days.

As one of the largest companies on the Nigerian Stock Exchange, Oando, which has significant upstream interests in Nigeria, enjoys indigenous experience which will help in operating in the Niger Delta.

Under the terms of the Agreement, Exile retains a 17.5% economic interest in the Project after cost recovery by Oando, until 7.5 million barrels of oil have been recovered from the field. After this, Exile's interest will step down proportionally to 12.5% until 10 million barrels have been recovered from the field, and 10% thereafter. During the cost recovery phase, Exile will be entitled to an 8% economic interest.

About Exile Resources Inc.

Exile Resources Inc. is an oil and gas exploration company advancing the development of the Akepo Oilfield in the shallow water Niger Delta, Nigeria. The Company is also pursuing additional oil and gas, exploration and development opportunities in Africa. Exile Resources Inc. has 63,754,191 issued and outstanding common shares. Please visit Exile Resource's web site for further information: www.exileresources.com.

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Forward-Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Exile Resources Inc. including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Neither 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 release.

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