Blackdog Resources Ltd. Closes Non-Brokered Flow-Through Financing and Updates Buck Lake Operations

Blackdog Resources Ltd. ("Blackdog" or "The Company") (TSX VENTURE:DOG) is
pleased to announce that it closed the second tranche of its flow through
financing (the "Private Placement") on December 30, 2011. In aggregate, the
Company issued 2,472,931 Common Shares on a "flow -through" basis under the
Income Tax Act (Canada) ("Flow-Through Shares") at a price of $0.48 per share
for gross proceeds of $1,187,006.88. All Flow-Through Shares pursuant to the
Private Placement are subject to a four-month hold period from the date of
issuance. 


In connection with the Private Placement, the Company paid certain eligible
investment professionals an aggregate of $58,012.25 in finder's fees and issued
120,754 share purchase warrants ("Broker Warrants"), each such Broker Warrant
exercisable for one common share of Blackdog at a price of $0.48 per share for
one year from the date of issue. 


Proceeds from the Private Placement will be used to incur eligible flow-through
expenditures to advance the Company's light oil properties in Alberta including
but not limited to its Pembina Horizontal Cardium play, Evi Slave Lake
horizontal play and Leduc Reef D3 play. 


The Company also announces that the completion and testing process on its
horizontal cardium well at Buck Lake, Alberta has commenced. The well has been
fracture stimulated and is currently undergoing a flow test period. The Company
has a 15% working interest in the well and in the entire 3/4 section of land the
well is situated on, subject to a 12% non-convertible gross overriding royalty. 


The Company further announces that during the month of December 2011, an
aggregate of 118,963 broker warrants were exercised at $0.36 per share for total
proceeds to the Company of $42,826.28. The broker warrants exercised were issued
in connection with the Company's non brokered Flow-Through Share private
placement which closed in December, 2010. 


Blackdog Resources Ltd. is a junior oil and gas company focused on the
development of medium and light oil properties in South-East Saskatchewan and
Alberta. The Company has 27,166,212 common shares outstanding.