FairWest Energy Announces Assignment of Bank Credit Facility

FairWest Energy Corporation ("FairWest" or the "Company") (TSX VENTURE:FEC)
announces that the Company is in default under the Company's revolving credit
facility (the "Credit Facility") with its Bank. As a result, the Company has
agreed to the sale and assignment to an affiliate of a significant shareholder
("Shareholder") of all of the Company's bank's right, title and interest in and
to, the Credit Facility, all of the indebtedness and liability owing by the
Company to its bank and all of the security and other documents delivered by the
Company to its bank in connection with the Credit Facility. The Credit Facility
provides for a demand revolving credit in the amount of $7,000,000, including a
$30,000 corporate MasterCard sublimit and a $250,000 letter of credit. The
Credit Facility was secured by a general security agreement in respect of all of
the present and after-acquired property of FairWest and a guarantee arranged by
the Shareholder in February 2012.


About FairWest Energy 

FairWest (TSX VENTURE:FEC) is a Calgary, Alberta based junior oil and gas
company engaged in the acquisition, exploration, development and production of
crude oil, natural gas and natural gas liquids in the provinces of Alberta and
Saskatchewan.


READER ADVISORY

This news release may contain certain forward-looking statements, including, but
not limited to, management's assessment of future plans and operations, the
Company's future default under the Series 1 and Series 2 Debentures. Such
statements involve substantial known and unknown risks and uncertainties,
certain of which are beyond the Company's control. Such risks and uncertainties
include, without limitation, risks associated with oil and gas exploration,
development, exploitation, production, marketing and transportation, loss of
markets, volatility of commodity prices, currency fluctuations, imprecision of
reserve estimates, environmental risks, competition from other producers,
inability to retain drilling rigs and other services, delays resulting from or
inability to obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources, the impact of general
economic conditions in Canada, the United States and overseas, industry
conditions, changes in laws and regulations (including the adoption of new
environmental laws and regulations) and changes in how they are interpreted and
enforced, increased competition, the lack of availability of qualified personnel
or management, fluctuations in foreign exchange or interest rates, stock market
volatility and market valuations of companies with respect to announced
transactions and the final valuations thereof and obtaining required approvals
of regulatory authorities. The Company's actual results, performance or
achievements could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurances can be given
that any of the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefits, including the amount
of proceeds, that the Company will derive therefrom. Readers are cautioned that
the foregoing list of factors is not exhaustive. All subsequent forward-looking
statements, whether written or oral, attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by these
cautionary statements. Furthermore, the forward-looking statements contained in
this news release are made as at the date of this news release and the Company
does not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable securities
laws.


319,654,775 Common Shares Issued

FOR FURTHER INFORMATION PLEASE CONTACT: 
FairWest Energy Corporation
Vern Fauth
Chief Executive Officer
[phone]
[phone] (FAX)
[e-mail]


FairWest Energy Corporation
Douglas O. McNichol
President and Chief Operating Officer
[phone]
[phone] (FAX)
[e-mail]


FairWest Energy Corporation
Marion D. Mackie
Chief Financial Officer
[phone]
[phone] (FAX)
[e-mail]