FairWest Energy Corporation
TSX VENTURE : FEC

FairWest Energy Corporation

November 28, 2012 09:00 ET

FairWest Energy Announces Default on Series 1 and Series 2 Debentures and Termination of Series 3 Debenture Offering

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2012) - FairWest Energy Corporation (TSX VENTURE:FEC) (the "Company") announces that, as of November 27, 2012 it is in default of its obligation to redeem the Series 1, 14% Secured Subordinated Convertible Debentures ("Series 1 Debentures") on maturity. The Company is also in default of paying interest due on the Series 1 Debentures for the period of November 1 to November 27, 2012. In addition, on December 7, 2012, the Company will be in default of paying interest due for the month of November, 2012, on its Series 2, 14% Secured Subordinated Convertible Debentures ("Series 2 Debentures") and anticipates that it will not be in a position to redeem Series 2 Debentures on their maturity date of December 31, 2012. The Series 1 and Series 2 Debentures continue to bear interest at the rate of 14% per annum after default and judgment, with interest on amounts in default at the same rate.

The Company has also decided to terminate the previously announced private placement offering of Series 3, 10% Secured Subordinated Convertible Debentures.

The Company is currently reviewing strategic alternatives to allow the Company to meet its payment obligations on the Series 1 and Series 2 Debentures.

About FairWest Energy

FairWest (TSX VENTURE:FEC) is a Calgary, Alberta based junior oil and gas company engaged in the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids in the provinces of Alberta and Saskatchewan.

READER ADVISORY

This news release may contain certain forward-looking statements, including, but not limited to, management's assessment of future plans and operations, the Company's future default under the Series 1 and Series 2 Debentures. Such statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

319,654,775 Common Shares Issued

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 release.

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