Diaz Announces Year End Results

Diaz Resources Ltd. (TSX VENTURE:DZR) announces that is has filed its 2011 MD&A
and Financial Statements on SEDAR.


Diaz Resources reported that Q4 2011 was its best quarter in terms of revenue
and average product price for the past two years, largely as the result of an
increase in heavy oil production. Diaz's revenue for this quarter comprised of
80% oil production, compared with 49% oil production for the fourth quarter of
2010.


Financial

For the year ended December 31, 2011, revenue decreased to $5.6 million compared
with $6.5 million for the prior year period. Cash flow from operations for the
year decreased to $77,000 or nil per share compared with cashflow of $1.7
million or $0.02 per share for the prior year.


Diaz reported a loss for the year of $17.0 million or $0.19 per share versus a
loss of $4.0 million or $0.05 per share in the prior year. The majority of this
loss related to the write down of the carrying value of Diaz's Canadian and
United States natural gas properties.


Capital expenditures for 2011 totalled $5.3 million compared with $4.4 million
in the prior year. Capital expenditures for the year were financed primarily
from working capital, disposition of non-core properties ($2.1 million) and the
proceeds from an $8.0 million private placement financing.


Diaz exited the year with net current debt of $1.7 million compared with $6.4
million at the beginning of the year. The Company's bank line was undrawn at
December 31, 2011.


Production

The Company's total production for 2011 decreased 19% to average 408 BOEd
compared with the prior year average of 505 BOEd. Oil production increased 11%
to average 142 bopd for the year. In Q4 2011, production increased to 431 BOEd,
including 225 bopd.


2012 Business Focus

Diaz expects oil prices to hold above USD $95 per barrel in 2012, as world
demand for oil continues to be strong. This should result in a realized heavy
oil price of CDN $70 per barrel for the year, which would support continued
development of the Company's successful heavy oil projects at Macklin,
Saskatchewan, and Lloydminster, Alberta.


Summary of Operations



----------------------------------------------------------------------------
                                   Three Months Ended           Years Ended 
($ Thousands, unless indicated)           December 31           December 31 
                                       2011      2010       2011       2010 
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Financial                                                                   
  Revenue (net of royalty                                                   
   expense)                        $  1,874   $ 1,576   $  5,621   $  6,508 
  Cash flow from (used in)                                                  
   operations(i)                        (39)      560         77      1,684 
    per share, diluted                 0.00      0.01       0.00       0.02 
  Loss for the period               (14,466)     (726)   (17,230)    (3,974)
    per share, diluted                (0.16)    (0.01)     (0.19)     (0.05)
                                                                            
  Capital additions                   1,693       757      5,334      4,357 
    Dispositions                        357         -      2,134        396 
  --------------------------------------------------------------------------
  Net capital additions               1,336       757      3,200      3,961 
                                                                            
  Net current debt                   (1,733)   (6,402)    (1,733)    (6,402)
  Convertible debentures(ii)        (12,319)   (6,682)   (12,319)    (6,682)
                                                                            
  Total assets                       19,146    34,029     19,146     34,029 
  Total shares outstanding at                                               
   period end (millions)              89.34     90.88      89.34      90.88 
                                                                            
Operations                                                                  
  Production                                                                
    Gas (MMcfd)                         1.2       1.9        1.6        2.3 
    Oil (Bopd)                          225       146        142        128 
    BOEd (6 Mcf = 1 Bbl)                431       466        408        505 
  Product Prices                                                            
    Gas ($/Mcf)                    $   3.57   $  4.85   $   4.12   $   4.80 
    Heavy oil ($/bbl)              $  76.35   $ 56.97   $  70.23   $  59.59 
    $ BOE                          $  50.64   $ 39.02   $  41.13   $  37.17 
----------------------------------------------------------------------------
                                                                            
  Reserves (proved plus probable,                                           
   future costs and prices)                                                 
    Gas (Bcf)                                                2.8       13.3 
    Oil (MBbl)                                             741.1    1,059.0 
    BOE (Millions)                                           1.2        3.3 
                                                                            
  Net present value of future net                                           
   revenue, before tax discounted                                           
   at 10% (iii)                                         $   15.9   $   38.0 
----------------------------------------------------------------------------
                                                                            
  Undeveloped land holdings (net                                            
   acres)                                                                   
  Canada                                                  51,103     53,583 
  United States                                              281        494 
  Total net acreage                                       51,384     54,077 
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(i)   Non-GAAP measure. Please see the reconciliation of "cash flow from    
      operations" to "cash flow from operating activities" found in the MD&A
      for the year ended December 31, 2010.                                 
                                                                            
(ii)  Convertible debentures have a face value of $7.1 million with maturity
      on March 27, 2014, and a face value of $8.0 million with a maturity of
      March 31, 2016. See Note 10, "Convertible Debentures", in the notes to
      the financial statements for the year ended December 31, 2011.        
                                                                            
(iii) Net present value of future net revenue may not represent fair market 
      value of reserves.                                                    



Further information regarding financial and operating results may be obtained at
www.sedar.com, where the Company's MD&A and financial statements have been
filed.


Diaz is an oil and gas exploration and production company based in Calgary,
Alberta. Diaz's current focus is on oil development and exploration in Alberta
and Saskatchewan.


ADVISORY: Certain information in this news release, including drilling plans and
projected drilling, completion and equipping costs, and production rates from
the Lloydminster and Macklin fields may constitute forward-looking statements
under applicable securities laws and necessarily involve risks including,
without limitation, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, capital expenditure costs, including drilling, completion and
facilities costs, 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.


Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural
gas volumes have been converted to barrels of oil at six thousand cubic feet
(mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in
isolation. A boe conversion of six thousand cubic feet per barrel is based on an
energy equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead. References to oil in
this discussion include crude oil and natural gas liquids (NGLs).


The forward looking statements contained in this press release are made as of
the date hereof and Diaz undertakes no obligations 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.