West Isle Energy Inc. Announces Agreement and Financing Re: Colombia

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


West Isle Energy Inc. ("West Isle") (CNSX:WEI) announces that it has entered
into an arm's-length agreement (the "Reto Transaction") for the purchase of all
the shares of a private corporation called Reto Petroleum Limited Colombian
Branch ("Reto"). Reto has entered into a farm out agreement ("Amerisur/Reto
Agreement") on the Fenix Block in Colombia with Amerisur Resources PCL
("Amerisur"), a London based oil & gas exploration company that is listed on AIM
board of the London Stock Exchange.


The Fenix Block consists of 24,117 hectares in the Middle Magdalena Basin of
central Colombia leased to Amerisur by the Agencia Nacional de Hidrocarburos
("ANH") under an exploration and production contract ("Lease Contract"). Some 2D
and 3D seismic is available over the block and a discovery well has been drilled
by Amerisur and is on production. The Amerisur/Reto Agreement is designed to
delineate and expand upon this discovery, and also to satisfy certain earning
obligations under the Lease Contract.


West Isle will issue 12,500,000 common shares ("Common Shares") at a deemed
value of $0.20 each, representing the agreed value of Reto's interest in the
Amerisur/Reto Agreement, to acquire all of the shares of Reto. The issuance of
these Common Shares to acquire Reto will constitute a reverse take-over of West
Isle. The reverse take-over transaction is conditional on the completion of a
concurrent financing in the amount of $7 million to fund the work program under
the Amerisur/Reto Agreement to earn interests in the Lease Contract.


The Amerisur/Reto Agreement has two earning phases. Under Phase 1 Reto can earn
a 20% working interest in the Lease Contract by drilling 5 stratigraphic wells
and 5 appraisal/developments wells in the area of Amerisur's discovery well. The
first appraisal/development well must be completed within 12 months, and all of
these wells must be completed within 18 months. Reto estimates that its cost of
this work program will be USD$3.5MM. Under Phase 2 Reto can earn an additional
10% working interest in the Lease Contract by the acquisition and processing of
75kms of 2D seismic on the eastern side of the Fenix Block prior to June 21,
2012, in accordance with the terms of an earning obligation under the Lease
Contract.


To implement the Phase 1 work program Reto intends to purchase and operate a
drilling rig suitable to the requirements of the work program. The cost to
purchase and to outfit the drilling rig to conduct operations on the Fenix Block
will be approximately USD$1.5MM. By owning a drilling rig Reto can significantly
reduce the cost of the Phase 1 work program, it can improve the economics of
further exploration and appraisal activities on the Fenix Block and it may
create opportunities for Reto to participate in further exploration activities
in Colombia.


To finance the cost of the Amerisur/Reto Agreement, and to provide necessary
working capital, West Isle has entered into a best efforts Engagement Agreement
with D & D Securities Inc. ("Agent") of Toronto to raise $7 million under a
private placement by the issuance of units ("Units") of West Isle at $0.20 per
Unit where each Unit is comprised of one Common Share and one half of a warrant
("Warrant") and a full Warrant entitles the holder to purchase one additional
Common Share at the price of $0.30 each. The exercise period for the Warrants
shall be 24 months from date of issuance, subject to a shortened expiry period
in the event the Common Shares of West Isle trade at or above $0.40 each for
more than 20 consecutive days. The Agent will be paid a commission of 8% cash
and the Agent will receive broker's warrants ("Broker's Warrants") to purchase
that number of West Isle Common Shares equal to 8% of the number of Units sold
under the offering, at a purchase price of $0.30 per Common Share, and the
exercise period for the Broker's Warrants shall be 24 months from the date of
issuance, subject to a shortened expiry period in the event the Common Shares of
West Isle trade at or above $0.40 each for more than 20 consecutive days. The
closing of the financing is conditional on a formal Agency Agreement with
standard market-out clause and appropriate regulatory approvals.


For more information about West Isle visit the website www.westisleenergy.com,
the Listings Disclosure Hall at www.cnsx.ca or on SEDAR at www.sedar.com.


This release includes certain statements that may be deemed "forward looking
statements". All statements in this release, other than statements of historical
facts, which address future activities including the closing of the financing,
exploration drilling and activity, and events or developments that the
Corporation intends, plans, anticipates, believes, estimates or expects are
forward looking statements. Actual results may differ materially. Although the
Corporation believes such forward looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the forward looking
statements. Factors that could cause results to differ materially from those in
the forward looking statements include, but are not limited to: inability to
close the Reto Transaction or the Financing or closing with material amendments,
market conditions and difficulties of raising funds in the economic environment,
availability and costing of exploration contractors; exploration success;
continued availability of capital government regulations, laws and charges;
environmental developments; exploitation economics; and generally the economic,
market, financial and business conditions in the present volatile and uncertain
economic period. Investors are cautioned that any statements are not guarantees
of future performance and actual results or developments may differ materially
from those stated in the forward looking statements. The Corporation does not
intend, and does not assume any obligation, to update these forward-looking
statements to reflect events or circumstances after the date hereof. More
detailed information about potential factors that could affect financial results
is included in the documents filed from time to time with the Canadian
securities regulatory authorities by West isle. This news release shall not
constitute an offer to sell or the solicitation of any offer to buy securities
in any jurisdiction.