Petro-Reef Resources Ltd. Operations Update

CALGARY, ALBERTA--(Marketwire - Feb. 2, 2011) - Petro-Reef Resources Ltd. (TSX VENTURE:PER),

On January 11, 2011 Petro-Reef Resources Ltd. announced that it was drilling the next oil development location at Alexander. After drilling the well to total depth identifying three to four hydrocarbon zones the drilling equipment became stuck in the hole. After several attempts to remove same, Petro-Reef has decided to abandon the well. Petro-Reef anticipates drilling the same location a short distance to the southwest before spring break-up.

In addition Petro-Reef is in the process of licensing 4 or 5 additional locations which it expects to drill before spring break-up depending on weather conditions and rig availability.