Tamarack Valley Energy Ltd. Announces Closing of $16.5 Million Bought Deal Offering

CALGARY, ALBERTA--(Marketwire - April 17, 2012) - Tamarack Valley Energy Ltd. ("Tamarack" or the "Company") (TSX VENTURE:TVE) is pleased to announce that it has closed its previously announced bought deal offering of 66,000,000 subscription receipts ("Subscription Receipts") at a price of $0.25 per Subscription Receipt (the "Offering Price"), for gross proceeds of $16,500,000 (the "Offering"). Each Subscription Receipt will entitle the holder to receive, for no additional consideration and without further action, one common share in the capital of Tamarack upon the closing of the previously announced acquisition (the "Acquisition") by Tamarack of privately-held Echoex Ltd. The syndicate of underwriters was led by Dundee Securities Ltd., and included AltaCorp Capital Inc., Canaccord Genuity Corp. and Peters & Co. Limited (collectively, the "Underwriters").

The gross proceeds of the Offering (the "Escrowed Funds") have been deposited into escrow with Olympia Trust Company, as escrow agent, and will be released to Tamarack (net of the balance of the underwriters' fee) upon notice to the escrow agent that all of the conditions to the completion of the Acquisition have been satisfied (which includes the condition that at least 90% of the issued and outstanding shares in Echoex shall have been acquired) and that the Acquisition has been completed in all material respects in accordance with the previously disclosed pre-acquisition agreement between Tamarack and Echoex Ltd. ("Acquisition Agreement"). Closing of the Acquisition is expected to occur later today or such other date not later than April 27, 2012.

In the event that: (i) the closing of the Acquisition does not occur by 5:00 p.m. (Calgary time) on April 27, 2012; (ii) the Acquisition is terminated in accordance with the terms of the Acquisition Agreement at any earlier time; (iii) a party to the Acquisition has disclosed to the public that it does not intend to proceed with the Acquisition; or (iv) the Company has advised the Underwriters that it does not intend to proceed with the Acquisition, then the Escrowed Funds, together with accrued interest earned thereon, will be returned to the holders of the Subscription Receipts.

The entire net proceeds from the Offering released from escrow will be used to initially reduce outstanding indebtedness under Tamarack's current credit facility with a Canadian chartered bank, thereby freeing up borrowing capacity which will be redrawn and applied to accelerate its 2012 oil focused capital program. As Tamarack regularly reviews its forecast, considering current market conditions, development opportunities and operational activity in the areas in which it currently operates, the use of the balance of the net proceeds of the Offering may, for sound business reasons, be reallocated towards other opportunities which management believes are in the Company's best interests.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under such Act or unless an exemption from registration is available.

About Tamarack Valley Energy Ltd.

Tamarack is an oil and gas company involved in the identification, evaluation and operation of resource plays in the western Canadian sedimentary basin. The Company uses a rigorous, proven modeling process to carefully manage risk and identify growth opportunities and has assets at Lochend, Garrington/Harmattan, Buck Lake, Foley Lake and Quaich areas in Alberta; southeast of Lloydminster in Saskatchewan; and at Wilder in northeast British Columbia.

Cautionary Statements

This news release contains forward-looking statements concerning the completion of the Acquisition, satisfaction of the escrow release conditions and the use of proceeds. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to the completion of the Acquisition, the satisfaction of the escrow release conditions, risks associated with the oil and gas industry such as testing results not being sustained during ongoing operations, delays or changes in plans with respect to exploration or development projects or capital expenditures, unexpected liabilities, commodity prices, the uncertainty of estimates and projections relating to production and reserve estimates, land value, cash generation, costs and expenses, health and safety litigation, environmental risks, access to capital and other risks and uncertainties, including those described in the Company's periodic filings with the Alberta Securities Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. Tamarack does not intend to update this information, except as required by law, and disclaims any legal liability to the contrary.