Yangarra Resources Ltd

Yangarra Resources Ltd. is a junior oil and gas company engaged in the exploration, development and production of natural gas and oil with operations in Western Canada, with a main focus on Central Alberta, where the Company has extensive infrastructure and land holdings.

Growth Strategies

Yangarra Resources is dedicated to creating value for its shareholders through its commitment to a clear business strategy and performance objectives. The Company's strategy is to increase the value of its corporate assets through the drill bit and by assembling a large focused land base in Alberta that features high-quality, long-life light oil and liquids-rich gas reserves. The Company has assembled a significant future drilling inventory and will strive to grow this inventory through drilling, geology and strategic acquisitions.

CORPORATE HISTORY

Yangarra Resources Inc. was initially formed in 1985 as Ayrex Resources Ltd., which was created as a mining venture. Over the next 15 years, Ayrex was involved in mining and oil and gas ventures, with Tandem Resources and Stan Hawkins as the eventual controlling shareholder. In late 2000, Jim Evaskevich (President) and Gordon Bowerman (Director) bought the control block of Ayrex from Tandem and took over the operations of the company.

In mid-July 2003, the stock was consolidated on a 4:1 basis, and the name of the company was changed to Yangarra Resources Inc. Subsequently, the management team of Glacier Ridge Resources Ltd., which had been sold to HighPoint Resources in July 2003, assumed management of Yangarra Resources Inc.

Yangarra Resources Inc. merged with TriOil Ltd. on November 9, 2005 to form a new oil and gas exploration company named Yangarra Resources Ltd.

Yangarra Resources Ltd. acquired Athabaska Energy Ltd., a small private oil and gas exploration company, in December 2009.

In May 2010, Yangarra Resources Ltd. completed an amalgamation under theBusiness Corporations Act (Alberta) between Yangarra and its wholly-owned subsidiary, Athabaska Energy Ltd. under the name Yangarra Resources Ltd.

OPERATING STRATEGIES

Yangarra's strategy is to hold large working interests in targeted regions that offer high-quality, long-life light oil and liquids-rich gas reserves. The Company operates its assets and either controls or has high working interests in infrastructure in its core areas. This allows Yangarra greater control over operating costs and ensures access to infrastructure. The Company strives to adapt and implement new technology faster than its peers.

Central Alberta

Yangarra Resources Ltd. has an interest in 140 sections in this field, which is located north of the town of Rocky Mountain House, Alberta.

The area has multi-zone potential from productive zones, including the Cardium, Second White Specks, Viking, Glauconite, Ellerslie, Rock Creek and Duvernay.

Medicine Hat, Alberta

Yangarra Resources Ltd. has a 100 percent working interest (subject to various GORRs of 4-7 percent on one-half of the property) in a total of 123 sections of land in this core area located south of the city of Medicine Hat, Alberta.

A compressor station situated at 5-25-9-6W4, built by Yangarra at the end of 2003, is capable of processing 4 million cubic feet per day and can be expanded to 8 million cubic feet per day.

A total of 62 wells have been drilled on the property to prove up the shallow gas Second White Specks and Medicine Hat zones; as well, deeper gas wells are producing from the Sunburst and Sawtooth formations.

Initial drilling on the property was to determine that the productive capability of the property was commercial. High initial water production rates slowed the development of this property in its formative stage. However, a water transfer and disposal system alleviated the costs associated with high water rates. New methods of determining where the water originated in this multi-zone area have resulted in much lower water production rates in subsequent drilling and completion programs.

Jaslan, Alberta

Yangarra has an interest in 32 sections (100 percent working interest) in this area, located 120 kilometres north of Edmonton. This area has multi-zone potential and shallow drilling depths up to 600 metres. A compressor station was constructed for the area in November 2006, in which Yangarra has a 100 percent working interest.

BOARD COMPOSITION

The Board of Directors is comprised of five directors, four of whom – Gordon Bowerman, Ted Morton, Robert Weir and Neil MacKenzie – are independent for the purposes of NI 58-101, so that a majority of the directors are independent. James G. Evaskevich is not independent, since he is the President and Chief Executive Officer of the Company.

Mr. Bowerman has been appointed the chairman of the Board of Directors and will continue to be considered an independent director under NI 58-101 and National Instrument 52-110 – Audit Committees. Mr. Bowerman is responsible for chairing meetings of the Board of Directors. To that end, he calls meetings of the Board of Directors as required between the regularly scheduled quarterly meetings, as issues of substance arise.

There are no special structures or processes in place to facilitate the functioning of the Board of Directors independently of the Company's management. The independent directors of the Company hold regularly scheduled meetings, but the lead director may at any time call meetings of the independent directors, at which any concerns may be freely expressed. The independent directors are also given full access to management so that they may express their own views and communicate their expectations of management.