Epsilon Energy Ltd. Announces Normal Course Issuer Bid for Common Shares

HOUSTON, TEXAS--(Marketwired - Sept. 16, 2013) - Epsilon Energy Ltd. (TSX:EPS) ("Epsilon" or the "Corporation"), announces that it has received Toronto Stock Exchange ("TSX") approval to a Notice of Intention to commence a normal course issuer bid through the facilities of the TSX, permitting the Corporation to repurchase, for cancellation, up to 2,527,870 of the 50,557,410 common shares that are currently issued and outstanding (the "common share NCIB"). This represents 5.0% of the issued and outstanding common shares. The average daily trading volume for the last six completed calendar months was 100,740 common shares. The number of shares to be purchased in any one day shall not exceed 25,185 common shares (being 25% of the average daily trading volume). The common share NCIB will commence on September 19, 2013, and run until the earlier of the date on which purchases under the bid have been completed and September 18, 2014.

The common share NCIB purchases are to be made through the facilities of the TSX in accordance with its policy statements on normal course issuer bids. The price, which Epsilon will pay for any common shares, will be the market price at the time of acquisition plus brokerage fees. Purchases may commence on September 19, 2013, and will terminate no later than September 18, 2014.

To the knowledge of the directors and officers of Epsilon, no director or officer, associate of a director or officer of the Corporation, no person acting jointly or in concert with the Corporation nor any person holding 10 percent or more of the common shares has any present intention to sell common shares during the period of the normal course issuer bid. During the past 12 months, the Corporation previously purchased 52,500 common shares, at an average price of $3.11 per share, pursuant to a normal course issuer bid which expired on September 6, 2013.

Epsilon believes that the market price of the common shares does not fully reflect the value of its business. Management anticipates having sufficient uncommitted cash available over the next 12 months which it can use to acquire the maximum number of shares under the common share NCIB. The common share NCIB will be one of management's priorities for increasing value for remaining shareholders over the course of the year ahead.

About Epsilon Energy Ltd.

Epsilon Energy Ltd. is a North American onshore exploration and production company with a current focus in the Marcellus Shale in Pennsylvania.

Forward-Looking Statements

Certain statements contained in this news release constitute forward looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", 'may", "will", "project", "should", 'believe", and similar expressions are intended to identify forward-looking statements. These 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 are based on reasonable assumption but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.

Special note for news distribution in the United States

The securities described in the news release have not been registered under the United Stated Securities Act of 1933, as amended, (the "1933 Act") or state securities laws. Any holder of these securities, by purchasing such securities, agrees for the benefit of Epsilon Energy Ltd. (the "Corporation") that such securities may not be offered, sold, or otherwise transferred only (A) to the Corporation or its affiliates; (B) outside the United States in accordance with applicable state laws and either (1) Rule 144(as) under the 1933 Act or (2) Rule 144 under the 1933 Act, if applicable.