Canoel Announces Formal Receipt of Approval as an Oil Trader in Libya

October 3, 2013 - Calgary, Alberta - Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE: CIL) is pleased to announce that it has received notification that the Company is now included in the list of recognized traders of crude oil with the Libyan National Oil Company.

This notification came after months of long negotiations with senior officers of the Libyan National Oil Company (NOC). As previously announced on November 21, 2012, Canoel had established a presence in Libya by starting the long process to open a local representative office. As the new government's economic strategy continues to develop, Canoel is confident that its representative office will enable management to evaluate additional opportunities in a timely and efficient manner. This will also allow the company to clearly differentiate itself from other entities seeking entry in the Libyan petroleum sector. These efforts are made with the intention to conduct future negotiations for purchasing or assuming operatorship of exploration and production assets in Libya. Local business connections are expected to facilitate the vetting of both exploration and production assets.

The negotiations with NOC are focused on two opportunities: 1) the trading of crude oil, and 2) the application to get access to producing fields that are temporarily shut-in. In terms of the first opportunity, as noted, company management has been notified that Canoel is now included on the list of the recognized traders of crude oil with the NOC. In terms of the second opportunity, Canoel can now concentrate its efforts toward the acquisition and advancement of early stage exploratory acreage as well as the resumption of operations of temporarily suspended fields. To date, Canoel's operating history in Argentina and Italy has validated this strategy of acquiring and enhancing producing assets, being either oil or natural gas fields.

Libya ranks as the 7th largest producer of oil & gas among the OPEC producers with declared national proven oil reserves of 48 billion barrels. (Source: 2011 IEA International Energy Agency, Paris, OPEC).

Earnings from oil exports account for more than 90% of Libya's National Income.

Forward-Looking Information

Certain information in this press release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated events and strategies. When used in this context, words such as will, anticipate, believe, plan, mandated, intend, target, and expect or similar words suggest future outcomes.

Forward-looking information in this press release includes, among other things, information relating to: (i) the identification of opportunities to conduct business and purchase exploration and production assets in Libya; and (ii) the Company's plan to grow through international acquisitions and exploration and to increase the production and reserves from its inventory of international oil and gas projects.

These statements are based on certain assumptions and analyses made by the Company in light of its experience, current conditions and expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements include, but are not limited to: (i) the ability of the Company to initiate oil trading activities; (ii) the ability of the Company to conduct business and identify potential oil and gas exploration and/or production assets in Libya; (iii) the ability of the Company to negotiate and/or enter into favourable transactions for such assets; (iv) the ability of the Company to raise the needed capital to acquire such assets; and (v) that the Company will be able to explore and/or produce and market oil and gas from such assets, if any.

Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company's expectations. Such risks and uncertainties include, but are not limited to, risks relating to: (i) whether the Company will be able to initiate oil trading activities; (ii) whether the Company will be able to identify potential oil and gas exploration and/or production assets; (iii) whether the Company will be able to negotiate and/or enter into favourable transactions for such assets; (iv) whether the Company will be able to raise the needed capital to acquire such assets. If any such risks actually occur, they could materially adversely affect the Company's business, financial condition or results of operations. In that case the trading price of the Company's common shares could decline, perhaps materially.

Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Canoel does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Canoel's expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information, please contact:

Jose Ramon Lopez Portillo Andrea Cattaneo

Chairman of the Board CEO & President

Email: [e-mail]

Telephone: [phone]

Telefax: [phone]

This press release is not to be distributed to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities law.