Quattro Exploration and Production Ltd.

Quattro Exploration and Production Ltd.

April 18, 2013 19:20 ET

Quattro Files Claim Against Cote Resources

CALGARY, ALBERTA--(Marketwired - April 18, 2013) - Quattro Exploration and Production Ltd. ("Quattro" or the "Company") (TSX VENTURE:QXP) announces that it has filed a claim against 1684671 Alberta Ltd. operating as Cote Resources ("Cote Resources"), an Alberta-based Corporation which purchased certain oil and gas assets (the "Assets") from Quattro in 2012. The claim relates to a subset of the assets described in the Company's press release dated May 15, 2012 that were sold to Cote Resources and seeks the recovery from Cote Resources of amounts incurred by Quattro on behalf of Cote Resources in the aggregate amount of over $323,009.00.

In addition, Quattro has served Cote with a notice of default of its obligations under a Participation Agreement executed as between CRL and Quattro Exploration and Production Ltd. ("Quattro") dated September 4, 2012 (the "Participation Agreement") with respect to its property in Wood Mountain, Saskatchewan. Specifically, the notice indicates that Cote Resources has failed to provide a guarantee, letter of credit or evidence of funds in trust in the amount of $800,000 plus GST for its 50% share of costs for the exploration and drilling of test well(s) within the exploration permit lands as defined in the Participation Agreement.

Quattro intends to vigorously pursue its claim on behalf of its shareholders.

Following the filing of Quattro's claim, Cote Resources filed a claim against Quattro claiming that a "partnership" existed between Cote Resources and Quattro in purchasing the Assets and that Quattro has breached its duties to Cote under such arrangement. It further claims that Quattro failed to conduct operations on certain assets and failed to register Cote Resources' ownership in the Assets. As set out in the court documents, Cote Resources is seeking a judgment in the amount of $2.37 million for breach of partnership, punitive damages of $250,000 and an order declaring the Assets to be held in trust by Quattro pending conveyance of Cote Resources' interest in such assets.

It is the position of Quattro that no such partnership existed between the parties and that Cote Resources has failed to perform its obligations under the agreements between the parties including the CAPL schedules, as set out in the Claim and Notice of Default issued by Quattro. The Company has taken immediate steps to vigorously defend the Cote Resources claim, which it feels is entirely without merit.

About Quattro Exploration and Production Ltd.

Quattro Exploration and Production Ltd. ("QXP") continues to focus on low risk exploration and development of oil and natural gas reserves in Western Canada, primarily in south central Saskatchewan and east central Alberta in conjunction with the aggressive pursuit of a series of high impact exploration efforts in Central and South America. The company continues to balance its portfolio of activities in Canada with the high impact international opportunities in order to assure its shareholders that Quattro achieves material growth in both reserves and production.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward- looking statements. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

BOE presentation:

Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.

Trading in the securities of Quattro Exploration & Production Ltd. should be considered highly speculative. 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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