Lynden Energy Reports Financial Results for the Nine Months Ended March 31, 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 30, 2013) - Lynden Energy Corp. (TSX VENTURE:LVL) (the "Company") reports its third quarter 2013 results. Highlights for the nine months ended March 31, 2013 (the "Current Period"), compared to the nine months ended March 31, 2012 (the "Prior Period"), include:

• Total production increased 207% to 282,256 boe (1,030 boe/d)
• Gross revenues, net of royalties, increased 164% to $13,608,980
• Sale of 16 gross (7 net) Wolfberry Project wells, to BreitBurn Energy Partners L.P. for $25 million, effective December 1, 2012 (the "BreitBurn Sale")

Production for the nine months ended March 31, 2013 totaled 282,256 boe (1,030 boe/d). Production for the three months ended March 31, 2013 totaled 94,146 boe (1,047 boe/d), a decrease of 3.8% over production in the three months ended December 31, 2012.

All of the production is attributable to the Wolfberry Project. The production mix, on a percent per boe basis, from the Wolfberry Project is approximately 60% oil and 40% natural gas and associated products.

Financial Results for the 9 months and 3 months ended March 31, 2013

This news release should be read in conjunction with the Company's consolidated financial statements for the nine months ended March 31, 2013 and the notes thereto, together with the MD&A for the corresponding period, which are available under the Company's profile on SEDAR at www.sedar.com. All monetary references in this news release are to U.S. dollars unless otherwise stated.

Results of Operations

The Company reported operating earnings of $4,553,868 for the Current Period compared to operating earnings of $2,791,577 for the Prior Period. The Company's net earnings of $11,108,632 and total comprehensive income of $11,255,571 for the Current Period compared to net earnings of $2,776,452 and total comprehensive income of $2,686,408 for the Prior Period. Significant components of the Current Period net earnings were net revenue of $13,608,890, depletion and depreciation of $5,301,519, gain on disposition of property, plant and equipment of $11,135,788, and income tax expense of $4,576,074.

Petroleum and Natural Gas ("P&NG") Revenue

The Company reported gross P&NG revenues of $18,010,917 (Prior Period - $10,759,857) for the Current Period, all from its Wolfberry Project wells. In conjunction with the revenues, the Company reported royalties paid of $4,401,937 (Prior Period - $2,457,378) and paid production and operating expenses of $2,372,429 (Prior Period - $1,143,857) for the Current Period. The Company also incurred $5,301,519 (Prior Period - $2,614,681) of depletion and depreciation for the Current Period. Average realized prices for the Current Period, were $86 per barrel ("Bbl") of oil and $4.77 per thousand cubic feet ("Mcf") of natural gas, compared to $93 per Bbl of oil and $7.91 per Mcf of natural gas, for the Prior Period. The natural gas selling price is reflective of the thermal value of gas and associated products sold.

The Company also reported gross P&NG revenues of $5,766,998 for the three months ended March 31, 2013 compared to $6,202,197 for the three months ended December 31, 2012 ("Q2/2013"). In conjunction with the revenues, the Company reported royalties paid of $1,437,162 (Q2/2013 - $1,571,024) and paid production and operating expenses of $866,900 (Q2/2013 - $834,113) for the three months ended March 31, 2013. Average realized prices for the three months ended March 31, 2013 were $87 per Bbl of oil and $4.56 per Mcf of natural gas, compared to $83 per Bbl of oil and $5.00 per Mcf of natural gas, for Q2/2013.

Liquidity - Borrowing Base Increases

The Company has a $50 million reducing revolving line of credit. Effective March 31, 2013, the line of credit had a $24 million borrowing base, which amount has been subsequently increased to $29 million. There is currently $23.5 million drawn on the line of credit. The Company is continuing to seek regular upward revisions of the borrowing base.

The Company anticipates financing the majority of its Wolfberry Project capital expenditures through operating revenues and upward borrowing base revisions on the line of credit.

While the Company continues to have a working capital deficit at March 31, 2013, it is the Company's view that the value of its P&NG holdings is increasing at a rate significantly greater than the working capital deficit. It is the Company's objective to sell portions of its proven acreage in order to manage its working capital position and to redeploy funds to its unproven acreage, where the Company believes it can achieve the best returns for shareholders.

Operations Highlights

The Wolfberry Project

The Company is currently carrying out a rapid oil and gas development program on its Wolfberry Project, where the Company now has 53 gross (22.07 net) wells tied-in and producing. At March 31, 2013, the Company had 6 gross (2.36 net) wells spud or drilled awaiting completion and/or tie-in.

The Company's current plans call for 16 gross (6.68 net) Wolfberry Project wells to spud in the balance of fiscal 2013 (April 1 to June 30, 2013) at an estimated cost to the Company of $16.0 million. The Company's funding amount for the 6.68 net wells is equivalent to 7.63 wells. The gross cost of a Wolfberry well is currently approximately $2.1 million.

The Company's capital budget is subject to change depending upon a number of factors, including economic and industry conditions at the time of drilling, prevailing and anticipated prices for oil and gas, the availability of sufficient capital resources for drilling prospects, the Company's financial results and the availability of lease extensions and renewals on reasonable terms.

The Company anticipates significant increases in daily production volumes as development of the Wolfberry Project continues. The Company has targeted a June 30, 2013 net production exit rate, after royalties, of approximately 1,200 boe/day. It is uncertain if this target will be met by June 30, 2013. The Company has revised its June 30, 2013 net production target exit rate to between 1,000 and 1,200 boe/day. The Company has participated in the drilling of numerous wells in the period from mid-April to mid-May, which wells are anticipated to begin production prior to June 30, however delays in the commencement of production from these wells, and the uncertainty of the initial production rates from these wells could result in the 1,000 to 1,200 boe/day target being met in July/August. This guidance is forward-looking information that is subject to a number of risks and uncertainties, many of which are beyond the Company's control.

Mitchell Ranch Project

The Company's Mitchell Ranch project covers approximately 102,000 acres of P&NG leases located primarily in Mitchell County, West Texas where the Company has a 50% working interest in approximately 67,000 acres, and a 1.25% overriding royalty interest on approximately 35,000 acres subject to a term assignment with a large, independent exploration and production company.

The Company currently has one (0.5 net) producing well, the Spade 17#1, where several rounds of completions have been carried out. During the Current Period, the Company received $76,109 of net revenue from sales from the Spade 17#1 well. The Mitchell Ranch Project is in the exploration and evaluation stage and as such, the net revenues have been credited to capitalized costs.

As a result of significant new drilling activity in the general area around the Mitchell Ranch Project the timing of the new wells has been pushed out in order to best incorporate the results of other operators into the development plan on the Mitchell Ranch Project. The Company is currently participating in a seismic shoot over a portion of the ranch as a preparatory step for a new well program. Initial processing and interpretation of the new seismic data and of the existing seismic data covering much of the ranch is expected in the summer.

About Lynden

Lynden Energy Corp. is in the business of acquiring, exploring and developing petroleum and natural gas rights and properties. The Company has various working interests in the Wolfberry Project and Mitchell Ranch Project, located in the Permian Basin in West Texas, USA and in the Paradox Basin Project, located in the State of Utah, USA.

NI 51-101 requires that we make the following disclosure: we use oil equivalents (boe) to express quantities of natural gas and crude oil in a common unit. A conversion ratio of 6 mcf of natural gas to 1 barrel of oil is used. Boe may be misleading, particularly if used in isolation. The conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

FORWARD-LOOKING STATEMENTS DISCLAIMER: This news release contains forward-looking statements. The reader is cautioned that assumptions used in the preparation of such statements, although considered accurate at the time of preparation, may prove incorrect, and the actual results may vary materially from the statements made herein. Expectations of 16 gross (6.68 net) Wolfberry Project wells to spud from April 1 to June 30, 2013, and expected timelines relating to oil and gas operations are subject to the customary risks of the oil and gas industry, and are subject to the company having sufficient cash to fund the drilling and completion of these wells. Expectations of obtaining upward borrowing base revisions on the line of credit are subject to the customary risks of the oil and gas industry, and are subject to drilling and completing successful wells, and prevailing and anticipated prices for oil and gas, as well as being at the discretion of the lender. The expectation of significant increases in daily production volumes as development of the Wolfberry Project continues as well as the expectation of achieving a June 30, 2013 net production exit rate, after royalties, of 1,000 - 1,200 boe/day, are subject to the customary risks of the oil and gas industry and is subject to the Company drilling and completing successful wells. For a more detailed description of these risks, and others, see www.lyndenenergy.com/riskfactors.html.

ON BEHALF OF THE BOARD OF DIRECTORS

LYNDEN ENERGY CORP.

"Colin Watt"

President and CEO