UNX Energy Announces Third Quarter 2010 Operational and Financial Results

NOT FOR DISTRIBUTION IN THE U.S.

UNX Energy Corp. (TSX VENTURE:UNX) ("UNX" or the "Company") today announced
third quarter operational and financial results for the period ending September
30, 2010. During the quarter, the Company advanced its geological and
geophysical work, raised funds to fulfill its commitments and hired additional
technical staff. An equity financing in November has enabled the Company to move
forward on a large 3D seismic acquisition during the first half of 2011. The
Company also restated and refiled its consolidated financial statements and
related management's discussion and analysis for fiscal 2009, as well as the
interim financial statements and management's discussion and analysis for the
three and six month periods ended March 31, 2010 and June 30, 2010 respectively.
Management believes the changes in the restated and refiled financial statements
are not material. Further detail on the restatement is provided below.


2010 Q3 Financial and Operational Results

"The third quarter saw continued steady progress on our work towards the
discovery of oil and gas resources in offshore Namibia," said Mr. Gabriel
Ollivier, President and CEO of UNX Energy. "Our efforts during the quarter were
focused on the continued delineation of the resources through both in-house
interpretation and analysis, and the various studies conducted and delivered to
us by Brazilian-based IPEX (Integrated Petroleum Expertise Co.), whom we
commissioned to provide in-depth analysis of the Orange Basin. The final and
complete suite of studies from IPEX is targeted for delivery either later this
year or in early 2011 and will include oil slick satellite surveys, seismic
reprocessing and interpretation and a 3D compositional petroleum system model of
the Orange Basin. These studies will be an important addition to the science we
have assembled to-date on the Orange Basin and will contribute towards
meaningful consultations with interested farm-in partners.


"Looking ahead, sizeable 3D seismic survey acquisitions are planned for the
first half of 2011, which have been made possible by our most recent equity
offerings. Once interpreted and analyzed, the new seismic data will give us a
clearer picture of the resources, allowing us to identify and rank numerous
possible drilling locations. UNX is well-positioned to continue the advancement
of our corporate goals which will hopefully lead to the discovery of oil and gas
in Namibia's offshore region."


Highlights from the third quarter include:



--  Completed an equity offering for the distribution of 11,430,000 Common
    Shares at a price of $1.75 per Common share, for gross proceeds of
    approximately $20 million; 
--  Received an extension from Namibia's Ministry of Mines and Energy for
    the first phase of the Company's work program on Exploration License
    0022 (Blocks 2815, 2816 and 2915), for a one-year period expiring on
    September 22, 2011; 
--  Completed strategic additions to staff, including the appointment of Mr.
    Brad Holub as Chief Operating Officer; 
--  Changed name and corporate identity to UNX Energy Corp., which
    represents a more accurate reflection of the Company's strategic focus;
    and 
--  Experienced a third quarter net loss of $2,982,008 with a loss per share
    of $0.03 



These highlights along with other operational and financial details are
discussed further in the Company's third quarter 2010 financial statements and
management discussion and analysis which can be accessed at www.sedar.com, or
alternatively on the Company's updated website, located at www.unxenergy.com.


Restatement and Refiling of Financial Statements

During the preparation of the interim consolidated financial statements for the
period ended September 30, 2010, the Company re-evaluated the acquisitions of
NIDG and Kunene and determined that these acquisitions should be treated as
asset acquisitions rather than business combinations. As a result, the Company
reversed a $1.6 million gain, net of acquisition expenditures, on revaluation of
the original investment in NIDG in the June 30, 2010 interim consolidated
financial statements, and the $1.2 million loss, net of acquisition
expenditures, on the revaluation of the investment in Kunene in the December 31,
2008 consolidated financial statements. The Company also amended the future
income tax liability for the six month period ended June 30, 2010 and the year
ended December 31, 2008 to reflect the appropriate liability associated with the
NIDG and Kunene oil and gas properties and adjusted the associated
non-controlling interests. In addition, the Company adjusted its stock-based
compensation expected life estimates for the period ending June 30, 2010,
increasing the expense by $0.3 million.


These restatements will have no impact on the Company's cash flow or its ability
to fulfill its commitments and move forward with its strategy in Namibia.


The restated and refiled interim and annual consolidated financial statements
have been amended as follows:




Consolidated Balance Sheet and                                              
Interim Consolidated Statements of Operations and Comprehensive Loss        
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As at and for the three months       Previously                             
 ended June 30, 2010                   reported     Adjustment     Restated 
----------------------------------------------------------------------------
Oil and gas properties          $    17,940,700  $   7,041,396 $ 24,982,096 
Future income tax liability                   -      7,471,105    7,471,105 
Non-controlling interest              1,454,146          9,908    1,464,054 
Contributed surplus                   6,461,553        322,505    6,784,058 
Deficit                             (11,790,088)       762,122  (12,552,210)
Net loss                               (816,077)     1,958,218   (2,774,295)
Net loss per share              $         (0.01) $        0.02 $      (0.03)
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Consolidated Balance Sheet                                                  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                     Previously                             
As at December 31, 2009                reported    Adjustment      Restated 
----------------------------------------------------------------------------
Oil and gas properties          $     6,964,913 $   4,414,529  $ 11,379,442 
Future income tax liability                   -     3,087,044     3,087,044 
Non-controlling interest                273,748       131,389       405,137 
Deficit                              (8,181,599)   (1,196,096)   (6,985,503)
----------------------------------------------------------------------------
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Consolidated Balance Sheet and                                              
Consolidated Statements of Operations and Comprehensive Loss                
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                    Previously                              
As at December 31, 2008               reported    Adjustment       Restated 
----------------------------------------------------------------------------
Oil and gas properties         $     4,419,193  $  4,414,529  $   8,833,722 
Future income tax liability                  -     3,087,044      3,087,044 
Non-controlling interest               273,748       131,389        405,137 
Deficit                             (6,764,808)   (1,196,096)    (5,568,712)
Net loss                            (3,942,232)   (1,196,096)    (2,746,136)
Net loss per share             $         (0.07) $      (0.02) $       (0.05)
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About UNX Energy Corp.

UNX Energy Corp. is a junior, independent oil and gas company, focused on
exploration for crude oil in offshore Namibia, Africa. Headquartered in Calgary,
Alberta, Canada, UNX's asset base consists of approximately 51,000 square
kilometres (approximately 32,000 net) of offshore acreage, strategically located
along the prolific South Atlantic Margin. Development of these highly
prospective blocks is being advanced by an experienced management team,
qualified technical staff and strong in-country relationships. UNX employs
strategic technical expertise to optimize the probability of exploration success
in the region. UNX is committed to conducting its business in a socially and
environmentally responsible manner, ultimately working towards the goal of
sustainable development in Namibia's oil and gas sector for the benefit of all
stakeholders.


On Behalf of the Board of Directors of UNX Energy Corp.

Duane Parnham, Chairman

For further information visit our website at www.unxenergy.com.

Sedar Profile No. 00016276

Forward Looking Information

Certain statements contained in this press release may constitute forward
looking statements. These statements relate to future events or UNX's future
performance. All statements other than statements of historical fact may be
forward looking statements. Statements relating to "reserves" or "resources" are
deemed to be forward looking statements, as they involve the implied assessment,
based on certain estimates and assumptions that the reserves and resources
described can be profitably produced in the future. Forward looking statements
are often, but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "may", "will",
"project", "predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar expressions. These statements involve known and
unknown risks, uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such forward looking
statements. UNX believes that the expectations reflected in those forward
looking statements are reasonable but no assurance can be given that these
expectations will prove to be correct and such forward looking statements
included in this press release should not be unduly relied upon by investors.


These statements speak only as of the date of this press release and are
expressly qualified, in their entirety, by this cautionary statement.


Any statements regarding the following are forward looking statements: (i)
planned exploration activity including both expected drilling and geological and
geophysical related activities; (ii) capital expenditure programs; (iii)
projections of market prices and costs; (iv) possible commerciality; (v)
available and potential farm out partners; (vi) future drilling of new wells;
(vii) impact of increasing competition; (viii) supply and demand for oil and
natural gas; (ix) ultimate recoverability of current and long term assets; (x)
expectations regarding UNX's ability to raise capital and to continually add to
reserves through acquisitions and development; (xi) future foreign currency
exchange rates; (xii) future market interest rates; (xiii) UNX's ability to
obtain additional financing on satisfactory terms; (xiv) future production
levels; (xv) future capital expenditures and their allocation between blocks;
(xvi) future earnings; (xvii) future asset acquisitions and dispositions;
(xviii) future debt levels; (xix) future sources of liquidity, cash flows and
their uses; (xx) estimates on per share basis; (xxi) the Canadian legislative
and regulatory environment; (xxii) government or other regulatory consent for
exploration, development or acquisition activities; (xxiii) treatment under
governmental regulatory and taxation regimes; (xxiv) future expenditures and
future allowances relating to environmental matters; (xxv) the use of proceeds
from the Offering; (xxvi) completion of the Offering and timing thereof; and
(xxvii) changes in any of the foregoing.


With respect to forward looking statements contained in this press release, UNX
has made assumptions regarding, among other things: (i) planned exploration
activity including both expected drilling and geological and geophysical related
activities; (ii) capital expenditure programs; (iii) possible commerciality;
(iv) available and potential farm out partners; (v) future drilling of new
wells; (vi) impact of increasing competition; (vii) supply and demand for oil
and natural gas; (viii) ultimate recoverability of current and long term assets;
(ix) expectations regarding UNX's ability to raise capital and to continually
add to reserves through acquisitions and development; (x) future foreign
currency exchange rates; (xi) future market interest rates; (xii) UNX's ability
to obtain additional financing on satisfactory terms; (xiii) future capital
expenditures and their allocation between blocks; (xiv) future asset
acquisitions and dispositions; (xv) future sources of liquidity, cash flows and
their uses; (xvi) estimates on per share basis; (xvii) the Canadian legislative
and regulatory environment; (xviii) government or other regulatory consent for
exploration, development or acquisition activities; (xix) treatment under
governmental regulatory and taxation regimes; (xx) future expenditures and
future allowances relating to environmental matters; (xxi) the use of proceeds
from the Offering; (xxii) completion of the Offering and timing thereof; and
(xxii) changes in any of the foregoing.


UNX's actual results could differ materially from those anticipated in these
forward looking statements as a result of risk factors set forth below and
elsewhere in this press release: (i) volatility in the market prices for oil and
natural gas; (ii) uncertainties associated with estimating reserves; (iii)
ability to explore, develop, produce and transport crude oil and natural gas to
markets; (iv) geological, technical, drilling and processing problems; (v) the
results of exploration and development drilling and related activities; (vi)
liabilities and risks, including environmental liabilities and risks, inherent
in oil and natural gas operations; (vii) volatility in energy trading markets;
(viii) foreign currency exchange rates; (ix) economic conditions in the
countries and regions in which UNX carries on business; (x) competition for,
among other things, capital, acquisitions of reserves, undeveloped lands and
skilled personnel; (xi) governmental actions including changes to taxes or
royalties, changes in environmental and other laws and regulations; (xii)
renegotiations of contracts; (xiii) results of litigation, arbitration or
regulatory proceedings; (xiii) political uncertainty, including actions by
terrorists, insurgent or other groups, or other armed conflict; (xiv) corruption
or other illegal activities in the country in which UNX carries on business;
(xv) conflict between states; and (xvi) other factors referred to under "Risk
Factors" in UNX's Annual Information Form.


Readers are cautioned that the foregoing list of risk factors is not exhaustive.
The forward looking statements contained in this press release are expressly
qualified by this cautionary statement. UNX is not under any duty to update any
of the forward looking statements after the date of this press release or to
conform such statements to actual results or to changes in UNX's expectations
and UNX disclaims any intent or obligation to update publicly any forward
looking statements, whether as a result of new information, future events or
results or otherwise, other than as required by applicable securities laws.