Canoel Provides Update on Italian Acquisition and Announces Appointment of Interim CFO

THIS PRESS RELEASE IS NOT TO BE DISTRIBUTED TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION
MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW. 


Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE:CIL)
is pleased to advise that the process of obtaining authorisation from Italian
regulatory authorities for the acquisition of the Medoilgas assets in Italy
previously announced continues to proceed toward closing. On September 6, 2012
the Company announced that it had entered into a purchase and sale agreement
with Medoilgas Italia SpA and Medoilgas Civita Limited (collectively, "MOG") for
working interests in 13 onshore exploration and production assets in Italy. 


Upon completion of the Italian acquisition the Company will (i) pay MOG the sum
of EUR100 as consideration for the acquisition of MOG's working interests in the
assets; (ii) assume the liability for all future plug, abandonment and site
remediation costs associated with the assets; (iii) receive EUR1,250,000
(approximately CAD $1,610,000) as a partial contribution towards the future
plug, abandonment and site remediation costs for the assets; and (iv) receive
the revenue MOG receives from the assets during the period between the effective
date of the Italian acquisition (August 24, 2012) and the date the transaction
is closed, net of allowable operating costs and agreed capital expenditure
associated with the assets and incurred by MOG from the effective date until
closing.


Canoel also announces that, for personal reasons, Mr. John Arne Farstad of
Norway has resigned as the Company's CFO and that Mr. Luigi Regis Milano, a
director of the company, has agreed to act as the interim CFO. 


Andrea Cattaneo, the company's CEO, states: "We wish to thank Mr. John Arne
Farstad for his contribution in assisting the Company develop to this stage."


Forward-Looking Information

Certain information in this press release is forward-looking within the meaning
of Canadian securities laws as it relates to anticipated events and strategies.
When used in this context, words such as will, anticipate, believe, plan,
mandated, intend, target, and expect or similar words suggest future outcomes.


Forward-looking information in this press release includes, among other things,
information relating to: (i) obtaining regulatory approval for the Italian
acquisition; and (ii) the closing of the Italian acquisition.


These statements are based on certain assumptions and analyses made by the
Company in light of its experience, current conditions and expected future
developments and other factors it believes are appropriate. The material factors
and assumptions used to develop these forward-looking statements include, but
are not limited to: (i) the ability of the Company to obtain regulatory approval
for the Italian acquisition, as contemplated; and (ii) the ability of the
Company to raise the needed capital to operate the assets upon closing of the
Italian acquisition. 


Whether actual results, performance or achievements will conform to the
Company's expectations and predictions is subject to a number of known and
unknown risks and uncertainties which could cause actual results and experience
to differ materially from the Company's expectations. Such risks and
uncertainties include, but are not limited to, risks relating to: (i) whether
the Italian acquisition will be completed or close as expected; and (ii)
obtaining new financing, as required, to operate and maintain the properties. If
any such risks actually occur, they could materially adversely affect the
Company's business, financial condition or results of operations. In that case
the trading price of the Company's common shares could decline, perhaps
materially.


Readers are cautioned not to place undue reliance on any such forward-looking
statements, which speak only as of the date made. Forward-looking statements are
provided for the purpose of providing information about management's current
expectations, and plans relating to the future. Readers are cautioned that such
information may not be appropriate for other purposes. Canoel does not undertake
or accept any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements to reflect any change in Canoel's
expectations or any change in events, conditions or circumstances on which any
such statement is based, except as required by law.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Canoel International Energy Ltd.
Jose Ramon Lopez Portillo
Chairman of the Board
[phone]
[phone] (FAX)


Canoel International Energy Ltd.
Andrea Cattaneo
CEO & President
[phone]
[phone] (FAX)
[e-mail]