East West Petroleum Enters into Agreements with Lani LLC for Joint California Exploration

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 4, 2012) - East West Petroleum Corp. (TSX VENTURE:EW) (the "Company" or "East West Petroleum") is pleased to announce the Company has signed a Letter of Intent with Lani LLC ("Lani") to carry out a joint exploration program in the San Joaquin Basin of California, USA. In conjunction with the joint exploration program, the Company will also make an investment of US$500,000 as part of Lani's planned restructuring as a public US company. Lani, a private E&P company based in Ventura, California, has assembled an exploration acreage position in the southern sector of the Basin with a number of oil prospects and leads identified. Under the terms of the partnership, the Company will assume a 21.25-25% net participation interest in Lani's acreage position, contributing US$2.5 million to drill two exploration prospects and acquire additional leases. Drilling is expected to commence before year-end 2012, with Lani assuming operatorship.

This joint venture represents the Company's entry into the United States. The San Joaquin Basin is being targeted due to the emergence of unconventional hydrocarbon plays in the Basin plus the fact that significant conventional oil and gas reserves continue to be discovered there. In 2009, Occidental Petroleum Corporation ("Occidental") announced it had made a major 150-250 mmboe conventional discovery in the Basin's deeper geological section. Current production from Occidental's new discovery is about 150 mmcf/d and 7500 bpd liquids. The East West-Lani exploration program will focus on a number of shallow oil prospects and leads and target the deeper section which is thought to have similar geologic characteristics to the Occidental discovery area. Based on a qualified reserves evaluator assessment, the Tejon Shallow and Deep leases, in which Lani holds approximately a 42% participation interest and constitute a portion of the farm in acreage, have unrisked gross prospective resource potential (Pmean) of approximately 16 mmboe. The acreage lies between two fields that have produced a combined 58 MMBbl and 252 Bcf gas from the primary zones of interest, attesting to the presence of a proven petroleum system.

In addition to the farm in, the Company has agreed to enter an Area of Mutual Interest ("AMI") with Lani covering the southern sector of the San Joaquin Basin. Under the terms of the AMI, the companies will target additional investment opportunities including the acquisition of up to 10,000 gross acres over the next 6 months. The Company's participation interest in the AMI will be 25%.

Greg Renwick, President & CEO, commented, "East West is pleased to be partnering with the Lani group, given that company's current attractive acreage position and in-depth geological knowledge of the San Joaquin Basin. We are particularly excited about acquiring an acreage position over prospective deeper areas in the Basin which are clearly under-explored and have the potential to hold significant accumulations of oil and gas. The East West management team has been busy over the last six months evaluating potential high impact plays around the world and the San Joaquin play is just one of several opportunities we are focused on at the moment."

Robert Rosenthal, Manager for Lani commented, "Lani is pleased to be partnering with East West Petroleum in the San Joaquin Basin. East West Petroleum's access to world class technology and a research team through laboratories in Vancouver bring significant benefits to the joint venture. These unique benefits coupled with Lani management's deep understanding of the basin augur well for future success for the joint venture."

ABOUT EAST WEST PETROLEUM CORP.

East West Petroleum is a TSX Venture Exchange-listed company which was established in 2010 to invest in emerging unconventional resource plays, leveraging management's knowledge of international opportunities and unconventional play technical expertise. In its first 18 months of operations, the Company has built an attractive platform of assets: an oil-prone, exploration block in the Assam region of India with the three largest E&P Indian firms ONGC, Oil India and GAIL; four exploration concessions covering 1,000,000 acres in the prolific Pannonian Basin of western Romania and a 500,000 acre exploration block onshore Morocco where conventional and unconventional oil potential has been delineated. The Company has also established oil and gas production in Canada. The Company is now poised to enter operational phases in Romania, where it will be fully carried by its partner Gazprom-controlled Naftna Industrija Srbije in a seismic and 12-well drilling program commencing in 2012/2013. The Company will operate geological field work and a seismic program to firm up drilling locations in Morocco. The Company is well funded to cover all anticipated seismic and drilling operations through 2012/2013, with funds available to secure other exploration and/or producing properties. Website: www.eastwestpetroleum.ca

Forward-Looking Statements

Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable securities legislation). Such statements and information (together, "forward-looking statements") relate to future events, including the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and/or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.

All statements other than statements of historical fact may be forward-looking statements. Statements concerning proven and probable reserves and resource estimates may also be deemed to constitute forward-looking statements and reflect conclusions that are based on certain assumptions that the reserves and resources can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations and assumptions will prove to be correct and such forward-looking statements should not be relied upon. These statements speak only as on the date of the information and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, operational risks (including exploration and development risks), productions costs, availability of drilling equipment, reliance on key personnel, reserve estimates, health, safety and environmental issues, legal risks and regulatory changes, competition, geopolitical risk, and financial risks. These risks and uncertainties are described in more detail under the heading "Risks and Uncertainties" and elsewhere in the Company's Management Discussion and Analysis. Readers are cautioned that the foregoing list of risk factors should not be construed as exhaustive. Actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement.

Reserves and Resources

The prospective resource estimate referenced above has an effective date of December 31, 2011, and have been prepared and audited in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook").

Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both a chance of discovery and a chance of development. There is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources.

BOEs

BOEs 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.