CaiTerra International Energy Signs Agreement to Sell Undeveloped Mineral Rights in Faust Area of Alberta

CaiTerra International Energy Corporation ("CaiTerra" or the "Company") (TSX
VENTURE:CTI) is pleased to announce that it has signed a letter agreement to
sell up to 50% of its interests in certain undeveloped mineral rights in the
Faust area of Alberta (the "Faust Property") to an arm's length Alberta private
company (the "Purchaser"). 


The Faust Property was recently acquired by CaiTerra on December 14, 2012 for a
total cash payment of CDN$2,500,000 and 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 sections) of lands of interest that have been
continued through to the end of April 2013. 


Subject to receipt of all necessary approvals, including the approval of the TSX
Venture Exchange, the purchase and sale of the Faust Property (the
"Transaction") is expected to be completed as follows:




--  upon the initial closing, which is intended to occur on or about
    February 1, 2013 (unless otherwise agreed to by the parties), the
    Purchaser will purchase 25% of CaiTerra's interest in and to the Faust
    Property in consideration for the cash payment of CDN$1,000,000; 
--  the Purchaser shall have the option to purchase an additional 25% of
    CaiTerra's interest in and to the Faust Property in consideration for an
    additional cash payment of CDN$1,000,000 (the "Option"); and 
--  the Option must be exercised by notice in writing to CaiTerra on or
    before February 13, 2013 and the closing of the purchase and sale of
    such additional 25% interest contemplated by the Option shall occur on
    or before February 15, 2013 (unless otherwise agreed to by the parties).



Each party has also covenanted and agreed to use commercially reasonable efforts
to negotiate in good faith and enter into a definitive agreement (the
"Definitive Agreement") and any other ancillary documents in respect of the
Transaction on or before February 1, 2013, such Definitive Agreement and
ancillary documents to be in form and substance satisfactory to the parties
thereto, including representations and warranties to each party customary in
transactions of this nature. The entering into of the Definitive Agreement and
the completion of the Transaction will subject to a number of conditions
including, without limitation, the following: (i) prior to entering into the
Definitive Agreement, the Purchaser shall have completed its due diligence on
the Faust Property to its satisfaction, acting reasonably, including, without
limitation, being satisfied that CaiTerra has good and valid title to the Faust
Property; and (ii) all director, shareholder, securities and regulatory
approvals and acceptances (as required) and all third party consents (as
required) having been obtained including, without limitation, the approval of
the TSX Venture Exchange. Notwithstanding the above, the Purchaser has agreed
that its own due diligence review will be limited to a review of the due
diligence recently conducted by CaiTerra when CaiTerra acquired the Faust
Property.


The Purchaser has provided CaiTerra with the sum of CDN$200,000 as a good faith,
non-refundable deposit (the "Deposit") which shall be retained in trust by
CaiTerra's legal counsel pending closing. Upon the initial closing of the
Transaction, the Deposit shall be released from trust and shall be deducted from
the portion of the purchase price payable at the initial closing. If the
Transaction is not completed for any reason whatsoever, the Deposit shall be
forfeited to CaiTerra for CaiTerra's own account absolutely as liquidated
damages and not as a penalty.


Cautionary Statements

Completion of the Transaction is subject to a number of conditions, including
but not limited to, TSX Venture Exchange acceptance. There can be no assurance
that the Transaction will be completed as proposed or at all. The TSX Venture
Exchange Inc. has in no way passed on the merits of the proposed Transaction and
has neither approved nor disapproved the contents of this press release.


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 timing and entering into of
the Definitive Agreement and any ancillary documents, the completion of the
conditions precedent to entering into of the Definitive Agreement and the
completion of the Transaction (including receipt of TSX Venture Exchange
approval), the anticipated closing date of the Transaction, the exercise of the
Option, and the Company's anticipated interests in the Faust Property. 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]