Mako Hydrocarbons Ltd : Strategic Review of Non-Core Asset - Provost

NEWS RELEASE

Strategic Review of Non-Core Asset - Provost

November 25, 2012 - Calgary; November 26, 2012 - Perth
Mako Hydrocarbons Ltd. (ASX: MKE, "Mako" or the "Company") is pleased to advise that it has undertaken a strategic review of most of its assets and determined that all capital expenditure for the foreseeable future should be applied to its Duvernay and Rock Creek plays. Consequently, rather than applying further capital to continue to enhance the value of Mako's Provost heavy oil project, the Board has determined to proceed with a disposal of the asset, which is considered non-core. Whilst the Company is not in a position to comment on what funds may be realised from the sale of this asset, the Board is of the view that these funds are far better deployed in advancing and focusing on both the Duvernay and Rock Creek plays and supplementing the Company's future requirements for capital.
Commenting on the decision Mako's President & Managing Director, Paul Griese, said "Whilst Provost remains a very commercial asset which provides over CDN$200,000 of net revenue per month, and with further development potential, the Board has now determined that it does not intend to apply any further capital towards its development as it is not considered a fit with Mako's focus on liquids rich resource developments. This step will also allow us to avoid ongoing operational expenses and reduce our ongoing
'G&A' overheads".
Following development drilling earlier this year, the Company commissioned a revised independent engineering report on the Provost field, and due to the new wells performing marginally below anticipated production levels it is expected the property value for the entire field will be reduced. Whilst the extent of this reduction, and the new reserves report, remains to be finalised, the Company expects the impairment to the book value of the asset could be as high as CDN$4 million to CDN$6 million, after taking into account all other costs associated with its development to date.
The Company believes that removing the diversion of resources and further capital to the Provost field, is an approach that will deliver the best outcome for shareholders and allow Mako to focus on the development of its cornerstone Duvernay and Rock Creek assets.

Competent Person Statement: The information in this Announcement has been produced by the Company, and reviewed and confirmed by Mr. Stuart Keck, Chief Operating Officer of the Company. Mr. Keck has sufficient experience that is relevant to the nature of hydrocarbon

ASX Code: MKE OTC QX Code: MAEEY Board of Directors Mr. George Watson Chairman

Mr. Simon Owen

Executive Vice Chairman

Mr. Paul Griese

Managing Director

Mr. Graham Anderson

Non Exec Director

Mr. Garry Mihaichuk

Non Exec Director

Management Mr. Paul Griese President & Managing Director

Mr. Cam Bolter

Vice President, Exploration

Mr. Brad Crowe

Vice President, Land

Mr. Stuart Keck

Chief Operating Officer

Mr. Jim Wilson

CFO & Corporate Secretary

Mr. Simon Owen

Executive Vice Chairman

Mr. Malcolm Bult

Executive Advisor

Mr. Leonard Math

Asst. Corporate Secretary

Mako Hydrocarbons Ltd. [e-mail] | www.makohydrocarbons.com| ABN: 33 009 218 955

Australian Office: Canadian Office:

14 Emerald Terrace, Suite 800, 521 Third Avenue S.W.

West Perth, WA, Australia 6005 Calgary, Alberta, Canada, T2P 3T3

Main: [phone] | Fax: [phone] Main: [phone] | Fax: [phone]

NEWS RELEASE

resources and prospects under consideration, and to the Company's field activities discussed in this

news release. His academic and professional qualifications comply with the criteria for "competence"

under clauses 18-21 of the Valmin Code 2005 ASX Listing Rule 5.11

Mako Hydrocarbons Ltd. is a dynamic, Calgary based exploration and production company concentrating on value creation through the exploitation of its interests in the world class, Duvernay liquids rich natural gas shale, and the light oil and liquids rich window of the Rock Creek formation in west central Alberta. Mako is committed to conducting it operations safely, and in a socially and environmentally responsible manner.

For further information, please contact: Paul Griese Simon Owen President & Managing Director Executive Vice Chairman [phone] [phone]

Mako Hydrocarbons Ltd. [e-mail] | www.makohydrocarbons.com| ABN: 33 009 218 955

Australian Office: Canadian Office:

14 Emerald Terrace, Suite 800, 521 Third Avenue S.W.

West Perth, WA, Australia 6005 Calgary, Alberta, Canada, T2P 3T3

Main: [phone] | Fax: [phone] Main: [phone] | Fax: [phone]