Blackdog Resources Ltd. Announces Drilling Royalty Credits Refund of $261,224.28 and Update on Operations

Blackdog Resources Ltd. ("Blackdog" or the "Company") (TSX VENTURE:DOG) is
pleased to announce that during Q3, 2011, the Company was issued an aggregate of
$261,224.28 in payments pursuant to the Government of Alberta Ministry of
Energy's drilling royalty credit program ("DRC Program"). Under the terms of the
DRC Program, the Company was able to deduct up to 50% of the royalties it paid
on wells in Alberta between April 1, 2010 and March 31, 2011 by using DRC
Program credits it accrued during this time period.


The first DRC Program payment issued to the Company was $79,500, pursuant to DRC
Program credits accrued by the Company during the drilling of its 15% working
interest ("W.I.") in a Pembina area cardium horizontal well, which was drilled
in February, 2011.


The second DRC Program payment issued to Blackdog was $363,448.57 (net
$181,724.28) in connection with an agreement entered into between Blackdog and a
third party public company ("Pubco"), pursuant to which Pubco transferred
certain DRC Program credits to Blackdog in consideration of receiving 50% of the
DRC Program payments issued to Blackdog for these credits. Blackdog incurred no
capital costs to receive the transferred credits. Pursuant to its agreement with
Pubco, Blackdog reimbursed Pubco $181,724.28, which was 50% of the DRC Program
payment received.


The Company also announces that construction has commenced on the pipeline on
its Leduc Reef light oil well (15% W.I.) near Sylvan Lake, Alberta and the
Company anticipates having the well on production within the next 14 days. The
Company also announces that a pipeline is being completed on its Pembina area
cardium horizontal well (15% W.I.) so that Blackdog and its partners will be
able to capture the natural gas and natural gas liquids for sale in addition to
light oil, which has been produced at the well since March, 2011. The
construction of the pipeline is expected to be completed in November and will
have no impact on current production.


Blackdog Resources Ltd is a junior oil and gas company focused on the
development of medium and light oil properties in South-east Saskatchewan and
Alberta. The Company has 24,578,318 common shares outstanding.


Certain information regarding Blackdog in this news release, including
management's assessment of the expected time of light oil production and future
plans and operations, may constitute forward looking statements under applicable
securities laws and necessarily involve risks including, without limitation,
risks associated with pipeline construction and tie-in operations, general risks
associated with oil and gas exploration, development, production, marketing and
transportation, loss of markets, volatility of commodity prices, imprecision of
reserve estimates, environmental risks, competition from other producers,
unexpected decline rates in wells, wells not performing as expected, delays
resulting from or inability to obtain required regulatory approvals and ability
to access sufficient capital from internal and external sources. As a
consequence, actual results may differ materially from those anticipated in the
forward-looking statements. Readers are cautioned that the foregoing list of
factors is not exhaustive. Additional information on these and other factors
that could affect Blackdog's operations and financial results are included in
reports on file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com). The forward-looking
statements or information contained in this news release are made as of the date
hereof and Blackdog does not undertake any obligation to update publicly or
revise any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.