CaiTerra International Energy Begins Drilling on the Faust Property in North Central Alberta

CaiTerra International Energy Corporation ("CaiTerra" or the "Company") (TSX
VENTURE:CTI) is pleased to announce that drilling has begun on its property in
the Faust area of north central Alberta (the "Faust Property"). The Faust
Property is located just north of the prolific Swan Hills oil field and west of
Black Pearl Resources Inc.'s Mooney Pool producing oil property and south of the
Town of Slave Lake. The lands forming the Faust Property are Crown leases with
varying expiry dates. The Faust Property comprises approximately 18,600 net
acres (approximately 30 sections) of lands of interest that are not subject to
expiry for the next 3 years and a further 3,840 net acres (6 contiguous
sections) of lands of special interest that have been continued through to the
end of April 2013.


The drilling currently being undertaken is not only to maintain the 6 sections
of land of special interest in good standing, but also to test for the presence
of the "Bluesky Sand sweet oil zone" which has been identified as an economic
oil producing zone in the Mooney producing oil property located to the east of
the Faust Property. 


The well configuration is a vertical well with a planned drill depth of 955
metres and is being conducted along a line of 2D seismic located on the eastern
half of Legal Subdivision (LSD) 9, Section 4, Township 72, Range 10, West of the
5th Meridian. At the date of this news release, the drill has reached a depth of
500 metres.  


The Faust Property was acquired by CaiTerra on December 14, 2012 for a total
cash payment of $2,500,000. On February 4, 2013, CaiTerra sold a 25% interest in
the Faust Property to Western Lion Resources Ltd. ("Western Lion") for a cash
payment of $1,000,000. At the time of spudding the drill, Western Lion had not
exercised its option to buy an additional 25% interest in the Faust Property
and, as a result, Western Lion maintains a 25% interest and CaiTerra maintains a
75% interest in the Faust Property. Western Lion has provided CaiTerra with its
25% share of the costs for drilling the well. 


A Note regarding Forward Looking Information 

This press release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws. The use of any of
the words "will", "expects", "believe", "plans", "potential" and similar
expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this press release contains forward
looking statements and information concerning the plans and timing for the
Company's drilling program. The Company cautions that there are no assurances or
guarantees that the transaction will be completed as proposed or at all.  


Although the Company believes that the expectations and assumptions on which
such forward looking statements and information are based are reasonable, undue
reliance should not be placed on the forward-looking statements and information
because the Company can give no assurance that they will prove to be correct. 


Since forward-looking statements and information address future events and
conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to, the risks
associated with the oil and gas industry in general such as operational risks in
development, exploration and production; delays or changes in plans with respect
to exploration or development projects or capital expenditures; the uncertainty
of reserve and resource estimates; the uncertainty of estimates and projections
relating to reserves, resources, production, costs and expenses; health, safety
and environmental risks; commodity price and exchange rate fluctuations;
marketing and transportation; loss of markets; environmental risks; competition;
incorrect assessment of the value of acquisitions; failure to realize the
anticipated benefits of acquisitions; ability to access sufficient capital from
internal and external sources; changes in legislation, including but not limited
to tax laws, royalties and environmental regulations, actual production from the
acquired assets may be greater or less than estimates; failure to obtain the
necessary regulatory approval, stock exchange and other regulatory approvals on
the timelines planned. Management has included the above summary of assumptions
and risks related to forward looking information provided in this press release
in order to provide security holders with a more complete perspective on the
Company's future operations and such information may not be appropriate for
other purposes. 


The forward-looking statements and information contained in this press release
are made as of the date hereof and the Company undertakes no obligation to
update publicly or revise any forward-looking statements or information, whether
as a result of new information, future events or otherwise, unless so required
by applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
CaiTerra International Energy Corporation
Craig Robson
Chief Executive Officer and Director
[phone]