Epsilon Energy Ltd.

Epsilon Energy Ltd.

March 31, 2009 21:08 ET

Epsilon Energy Ltd.: Delay in Filing Financial Statements

CALGARY, ALBERTA--(Marketwire - March 31, 2009) - Epsilon Energy Ltd. (TSX:EPS) ("Epsilon" or the "Company") failed to file its annual audited financial statements for the year ended December 31, 2008, Management Discussion and Analysis for that period, Annual Information Report for the year ended December 31, 2008 and Statement of Reserves Data and Other Oil and Gas Information at December 31, 2008 (collectively the "Financial Disclosure") on March 31, 2009 as required by Sections 4.2 and 5.1 of National Instrument 51-102 Continuous Disclosure Obligations. The Financial Disclosure was not filed due to a delay in the completion to the auditor's report ("Report") being prepared by Epsilon's auditor Deloitte & Touche LLP. The delay relates to Epsilon's international operations. The Company expects the Report to be completed on April 1, 2009 and will file the Financial Disclosure upon receipt of the Report. Epsilon shall satisfy the provisions of the any alternative information guidelines provided by securities commissions or similar authorities so long as it remains in default of the specified requirement to file the Financial Disclosure.

About Epsilon Energy Ltd.

Epsilon is engaged in the exploration and production of oil and natural gas reserves in North America, the Middle East and Africa. Established in 2005, the Company has been a producer of oil and natural gas since 2006. Epsilon's ongoing business strategy involves developing a well-balanced inventory of oil and natural gas projects, including high potential oil & gas properties in the Middle East and Africa coupled with lower risk oil and natural gas properties within Canada and the United States.

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.

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