Solimar Energy Limited: Kreyenhagen Update

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Solimar Energy Limited (ASX:SGY) (TSX VENTURE:SXS) ("Solimar" or "the Company")
has signed a Letter of Intent ("LOI") with its joint venture Kreyenhagen Heavy
Oil Project joint venture partner ("JV Partner").


The LOI is at this stage non-binding but contemplates the following key
amendments to the Farmout Agreement that was announced on May 7, 2013.




--  A testing program in respect of the two wells drilled (2-33, 8-33) has
    been agreed by both parties and the cash call in respect of that program
    has been issued by Solimar to its JV Partner.

--  The JV Partner will agree to pay cash calls for future approved AFE's in
    respect of any additional work required as a result of accelerating the
    testing program on wells 2-33 and 8-33.

--  The JV Partner will not drill any further wells under Phase I of the
    work program.

--  The JV Partner's 15% working interest in the Heavy Oil lease will be
    reduced proportionately for that amount under the original USD$2m
    commitment to Phase I that had been contemplated in the Farmout
    Agreement. 

--  The JV Partner will not earn any interest in the Shale leases.

--  The JV Partner will not participate in the Phase II program and will
    forego any rights that it would have been entitled to, as contemplated
    in the Farmout Agreement, to increase its working interest in the
    project in Phase II.



In addition to the testing program planned for the two wells drilled under the
joint venture (2-33, 8-33) Solimar is also intending to drill and core a
vertical well as part of its program in the first quarter 2014. The Company is
in advanced discussions with a third party to fund the drilling and coring of
this well which would complete the original Phase I program.


Solimar Energy Limited

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.


Reader Advisory: Potential resource estimates and forward-looking statements

This news release contains forward-looking information relating to planned
development and exploration activities on the properties in which the Company
has interests, and other statements that are not historical facts. Such
forward-looking information is subject to important risks, uncertainties and
assumptions. The results or events predicated in this forward-looking
information may differ materially from actual results or events. As a result,
you are cautioned not to place undue reliance on this forward-looking
information.


Forward-looking information is based on certain factors and assumptions
regarding, among other things, the impact of increasing competition; the timely
receipt of any required regulatory approvals; the ability of the Company to
obtain qualified staff, equipment and services in a timely and cost efficient
manner; drilling results; the ability of the operator of the projects which the
Company has an interest in to operate the field in a safe, efficient and
effective manner; the ability of the Company to obtain financing on acceptable
terms; field production rates and decline rates; the ability to replace and
expand oil and natural gas reserves through acquisition, development of
exploration; the timing and costs of pipeline, storage and facility construction
and expansion and the ability of the Company to secure adequate product
transportation; future oil and natural gas prices; currency, exchange and
interest rates; the regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which the Company operates; and
the ability of the Company to successfully market its oil and natural gas
products, and other similar matters. While the Company considers these
assumptions to be reasonable based on information currently available to it,
they may prove to be incorrect.


Forward looking-information is subject to certain factors, including risks and
uncertainties that could cause actual results to differ materially from what is
currently expected. These factors include risks associated with instability of
the economic environments in which the Company operates or owns interests, 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,
incorrect assessment of the value of acquisitions, failure to realize the
anticipated benefits of acquisitions, delays resulting from or inability to
obtain required regulatory approvals and ability to access sufficient capital
from internal and external sources, reliance on key personnel, regulatory risks
and delays, including risks relating to the acquisition of necessary licenses
and permits, environmental risks and insurance risks.


The estimates of resources in this news release constitute forward-looking
information which is subject to certain risks and uncertainties, including those
associated with the drilling and completion of future wells, limited available
geological data and uncertainties regarding the actual production
characteristics of, and recovery efficiencies associated with, the reservoirs,
all of which are being assumed. As estimates, there is no guarantee that the
estimated reserves or resources will be recovered or produced. Actual reserves
and resources may be greater than or less than the estimates provided in this
presentation.


You should not place undue importance on forward-looking information and should
not rely upon this information as of any other date. While the Company may elect
to, the Company is under no obligation and does not undertake to update this
information at any particular time, except as required by law. 


ABN 42 112 256 649

FOR FURTHER INFORMATION PLEASE CONTACT: 
Solimar Energy Limited
Jason Bednar
Director
[phone] or [phone]
www.solimarenergy.com.au