Parex Resources Announces Closing of Llanos Basin Acquisition

CALGARY, ALBERTA--(Marketwire - June 29, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Parex Resources Inc. ("Parex" or the "Company") (TSX VENTURE:PXT), has successfully closed the previously announced acquisition (the "Acquisition") of a company which holds the 50% interest Parex does not already own in four Llanos Basin blocks in Colombia, including the Kona discovery on Block LLA-16, for approximately US$255 million in cash, net of closing adjustments.

The acquired assets are currently producing approximately 3,100 barrels of light oil per day ("bopd"). With the close of the Acquisition Parex is currently producing approximately 6,200 bopd. Further, post acquisition Parex anticipates that forecast capital expenditures, excluding the costs of the acquisition, to range between US$ 125 million and US$ 140 million, and year-end exit rate production to be in excess of 14,000 bopd.

The Acquisition was funded through a bought deal financing (the "Offering"), pursuant to which the Company issued 31.05 million subscription receipts of Parex (the "Subscription Receipts") at CDN$7.00 per Subscription Receipt for gross proceeds of CDN$217.35 million and CDN$85.0 million aggregate principal amount of 5.25% extendible convertible unsecured subordinated debentures of Parex (the "Debentures"), for total combined gross proceeds of CDN$302.35 million. The Offering was co-led by FirstEnergy Capital Corp. and Scotia Capital Inc., and included Haywood Securities Inc., CIBC World Markets Inc., Peters & Co. Limited, Raymond James Ltd., RBC Capital Markets and TD Securities Inc.

In conjunction with the closing of the Acquisition each Subscription Receipt has been automatically converted into one common share of Parex ("Common Shares") without any further action on the part of the holder and without payment of additional consideration. The maturity date of the Debentures has been automatically extended from the initial maturity date of July 15, 2011 to June 30, 2016.

Also in connection with the closing of the Acquisition, the Company has made application to the TSX Venture Exchange ("TSXV") to de-list the Subscription Receipts from trading on the TSXV, effective immediately and the Subscription Receipts have been halted from trading. The Common Shares into which the Subscription Receipts have been converted will be listed and posted for trading on the TSXV on the opening of the market on Monday, July 4, 2011. With the conversion of the Subscription Receipts there are approximately 108.2 million Common Shares outstanding.

This press release is not an offer to sell or solicitation of an offer to buy the Subscription Receipts and Debentures in the United States. The securities have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities law. Securities may not be offered or sold in the United States absent registration or an exemption from the registration requirements.

Corporate Overview

Parex, through its direct and indirect subsidiaries, is engaged in oil and natural gas exploration, development and production in South America and the Caribbean region. Parex is conducting exploration activities on its 595,000 acre holdings in the Llanos Basin of Colombia and 223,500 acre holdings onshore Trinidad. Parex is headquartered in Calgary, Canada.

Advisory on Forward Looking Statements

Certain information regarding Parex set forth in this document contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words "plan", "expect", "prospective", "project", "intend", "believe", "should", "anticipate", "estimate" or other similar words, or statements that certain events or conditions "may" or "will" occur are intended to identify forward-looking statements. Such statements represent Parex's internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. These statements are only predictions and actual events or results may differ materially. Although the Company's management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Parex's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Parex. In particular, forward-looking statements contained in this document include, but are not limited to, statements concerning the timing of the de-listing of the Subscription Receipts, timing of listing of the underlying Common Shares and expected post-acquisition capital expenditure amounts and year-end exit rate production.

These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions in Canada, Colombia and Trinidad & Tobago; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced, in Canada, Colombia and Trinidad & Tobago; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; obtaining required approvals of regulatory authorities, in Canada, Colombia and Trinidad & Tobago; risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities; volatility in market prices for oil; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws or changes in tax laws and incentive programs relating to the oil industry; ability to access sufficient capital from internal and external sources; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Parex's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

Although the forward-looking statements contained in this document are based upon assumptions which Management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Parex has made assumptions regarding: receipt of regulatory and other approvals for the Offering and the Acquisition; current commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; royalty rates, future operating costs, and other matters. Management has included the above summary of assumptions and risks related to forward-looking information provided in this document in order to provide shareholders with a more complete perspective on Parex's current and future operations, the Acquisition and the Offering and such information may not be appropriate for other purposes. Parex's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Parex will derive there from. These forward-looking statements are made as of the date of this document and Parex disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.