Cano Petroleum Common Stock to Begin Trading on OTC Market Group

On January 13, 2012, Cano Petroleum, Inc. (NYSE Amex: CFW) (“Cano”) announced that its common stock will cease trading on NYSE Amex at the open of the market on January 17, 2012. Cano expects that its common stock will begin trading under the symbol “CANO” on the OTCQB marketplace, operated by OTC Markets Group. The transition to the OTC Market Group comes after Cano announced its voluntary delisting of its common stock. The transition to the OTC Market Group does not change Cano’s obligation to file periodic and other reports with the Securities and Exchange Commission under applicable federal securities laws. In addition, the transition of Cano’s stock to the OTC Market Group will have no effect on the shares themselves. Investors may view Level II Real Time stock quotes for Cano at www.otcmarkets.com.

Forward-Looking Statements

Safe-Harbor Statement — Except for the historical information contained herein, the matters set forth in this news release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Cano intends that all such statements be subject to the “safe-harbor” provisions of those Acts. Many important risks, factors and conditions may cause Cano’s actual results to differ materially from those discussed in any such forward-looking statement. These risks include, but are not limited to, estimates or forecasts of reserves, estimates or forecasts of production, future commodity prices, exchange rates, interest rates, geological and political risks, drilling risks, product demand, transportation restrictions, the ability of Cano Petroleum, Inc. to obtain additional capital, and other risks and uncertainties described in the Cano’s filings with the Securities and Exchange Commission. The historical results achieved by Cano are not necessarily indicative of its future prospects. Cano undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.