BlackPearl Resources Down On Q4 Results

CALGARY, ALBERTA--(Marketwire - Jan. 30, 2012) - BlackPearl Resources Inc. ("BlackPearl" or the "Company") PXX(FIRST NORTH:PXXS) is pleased to announce the results of its 2011 year-end oil and gas reserves evaluation, contingent resource evaluation and to provide an operations update on the Company's current activities.

Highlights include:

John Festival, President of BlackPearl, commenting on the new reserves and resource evaluations indicated that, "Our reserve additions in 2011 are a reflection of the growth we have seen in 2011, but more importantly it is a validation of our three core properties and their performance. The ultimate potential at Blackrod, Onion Lake and Mooney is identified in the resource report and as we advance each project, barrels will be moved from the resource category to the reserves category.

"At Mooney, additional drilling extended the pool to the west, which will eventually lead to an expansion of our ASP (alkali, surfactant, polymer) flood. At Onion Lake, we are delineating the pool with primary drilling and production, and this will lead to a full-scale thermal project on these lands. Our pilot results at Blackrod have moved two million barrels from resource to reserves and we expect many more barrels to be recognized as reserves as we file our 80,000 barrel per day commercial application in 2012.

"Over the last three years we have grown production from 5,000 to 10,000 barrels of oil per day. However, 2012 will be the start of a transition period for BlackPearl as we have now set the stage for growth to 30,000 barrels of oil per day by 2016 as we bring on our thermal projects. We did not meet our 2011 exit target of 11,000 barrels of oil per day due to our decision to alter our primary recovery development plans at Onion Lake to accommodate our thermal project which are over the same lands. We expect to maintain a production level of 10,000 to 13,000 barrels of oil per day over the next several years during this transition period. Some of our cash flow will be spent keeping our production at these levels and the remainder will be used to fund the development of our thermal and ASP flood projects. We are currently evaluating additional funding alternatives to develop these major projects."