Cano Petroleum Announces Receipt of Stock Exchange Compliance Notice

On November 30, 2011, Cano Petroleum, Inc. CFW announced that it received a letter from NYSE Amex LLC (the “Exchange”) indicating that the timely filing of Cano's Form 10-Q for the period ended September 30, 2011 is a condition for Cano's continued listing on the Exchange, as required by Sections 134 and 1101 of the Exchange's Company Guide (the “Company Guide”). Further, Cano's failure to timely file this report is a material violation of Cano's listing agreement with the Exchange and therefore, pursuant to Section 1003(d) of the Company Guide, the Exchange is authorized to suspend and remove Cano's securities from the Exchange unless action is taken to bring the Company into compliance with Sections 134 and 1101 of the Company Guide by no later than February 20, 2012. Further, the Staff of NYSE Regulation's corporate compliance department (the “Staff”) advised Cano that its common stock may not be suitable for auction market trading due to its low trading price. The Staff further advised Cano that, pursuant to Section 1003(f)(v) of the Company Guide, Cano's continued listing on the Exchange is predicated on its effectuation of a reverse split within a reasonable period of time, which the Staff has determined to be no later than May 22, 2012. As a result of the foregoing, Cano has become subject to Section 1009 of the Company Guide, which promulgates the procedures to be followed with respect to companies identified as being below the Exchange's continued listing policies and standards.