DeeThree Exploration Organically Grows Year End Reserves by 95% and Affirms 2014 Guidance

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES 


DEETHREE EXPLORATION LTD. ("DeeThree" or the "Company") (TSX:DTX)(OTCQX:DTHRF)
is pleased to report its 2013 year end oil and gas reserves. At December 31,
2013 DeeThree has increased its proved plus probable reserves by 95% to 39.4
mmboe as compared to the prior year. DeeThree's reserve additions were
predominately a result of the successful 2013 drilling program in the Company's
two core properties being the Belly River property in the Brazeau area of west
central Alberta and the Alberta Bakken property located in the Lethbridge area
of southern Alberta. The reserve additions demonstrate the high quality of the
Belly River and the Alberta Bakken properties and represent a successful return
on the Company's rapid pace of development. In addition, DeeThree's estimated
finding and development costs on proved reserves and proved plus probable
reserves (including future development costs) were reduced in 2013 by 38% and
23% respectively to $19.14/boe for proved reserves and $17.08/boe for proved
plus probable reserves.  


DeeThree recorded impressive reserve gains in each of its core properties as a
result of its 2013 delineation program. The proved plus probable reserves of the
Belly River property increased 147% to 18.8 mmboe in 2013 from 7.6 mmboe in
2012. The Belly River reserves include 40 proved undeveloped locations ("PUDs")
that have been assigned to the property at year end as compared to the 28
horizontal locations that DeeThree plans to drill in 2014 (1.4 times budget).
Similarly, the proved plus probable reserves of the Alberta Bakken property
increased 80% to 19.2 mmboe in 2013 from 10.7 mmboe in 2012. The Alberta Bakken
reserves include 32 PUDs that have been assigned to the property at year end as
compared to the 18 horizontal locations that DeeThree plans to drill in 2014
(1.8 times budget). Based on resource studies completed on the Belly River
property (see August 14, 2013 news release) and the Alberta Bakken property (see
August 21, 2012 news release) DeeThree expects this trend to continue into the
future as the Company further drills and delineates its two core properties. 


RESERVE HIGHLIGHTS



--  Total proved plus probable reserves increased 95% to 39.4 million boe
    (77% oil and NGLs) as at December 31, 2013 from 20.2 million boe (78%
    oil and NGLs) as at December 31, 2012. 
    
--  Total proved reserves have increased 83% to 26.3 million boe (75% oil
    and NGLs) as at December 31, 2013 from 14.4 million boe (78% oil and
    NGLs) as at December 31, 2012. 
    
--  Predominately all 2013 reserve additions were added through the drill
    bit or as a result of technical revisions with only $12 million spent in
    2013 on acquisitions comprised mainly of undeveloped land in the
    Company's core areas. The Company also spent approximately $10 million
    at crown land sales throughout 2013. 
    
--  Achieved finding and development costs ("F & D"), including the change
    in future development capital ("FDC"), of $17.08 per boe on proved plus
    probable reserves additions and $19.14 per boe on total proved reserves
    additions. 
    
--  Completed two significant "one-time" infrastructure projects totaling
    approximately $14 million to support future production growth including
    an 8,000 bbl/d battery on the Alberta Bakken property and a pipeline
    expansion in the western portion of the Belly River property. 
    
--  On a fully diluted per share basis, increased proved plus probable
    reserves by 67% and increased proved reserves by 57%. 
    
--  Proved plus probable reserve additions replaced 2013 production by 8.3
    times.  
    
--  Proved plus probable future net capital of $328 million represents 1.4
    times the Company's 2014 capital budget and includes only 72 horizontal
    wells, being less than 15% of the Company's current inventory of 500+
    risked well locations.  
    
--  Proved plus probable recycle ratio of 2.4 based on estimated 2013
    operating netback of $40.50/boe and 2.6 on forecasted 2014 operating
    netback of $45.00/boe. 



The evaluation of DeeThree's petroleum and natural gas reserves as at December
31, 2013 was evaluated by the Company's independent reserve engineering firm,
Sproule Associates Limited ("Sproule") and was conducted pursuant to National
Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI
51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGEH") reserves
definitions. Additional reserve information as required under NI 51-101 will be
included in the Company's Annual Information Form which will be filed on SEDAR
by March 31, 2014. Financial information presented above is based on management
prepared financial statements for the year ended December 31, 2013 which are in
the process of being audited by DeeThree's independent auditors and,
accordingly, such financial information is subject to change based on the
results of the audit. See "Reader Advisory - Unaudited Financial Information"
below. 


RESERVES INFORMATION

The Company's reserves are located in the Lethbridge area of southern Alberta
area, which features Bakken oil plus shallow natural gas, the Brazeau area of
west central Alberta and Peace River Arch area of northwestern Alberta, which
feature light crude oil, natural gas and natural gas liquids. 


In 2013, the Company drilled a total of 35 gross (34.1 net) wells with a 86%
percent success rate, 17 gross (17.0 net) wells on the Alberta Bakken property,
17 gross (16.9 net) wells on the Belly River property, and 1.0 gross (0.3 net)
wells on the Peace River Arch property.


The following table represents the Company's reserves effective as at December
31, 2013 as evaluated by Sproule. The evaluation of DeeThree's petroleum and
natural gas reserves was conducted pursuant to NI 51-101 and COGEH reserves
definitions.




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                               Natural Gas   Crude Oil       NGLs     BOE(3)
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                                 Gross(2)    Gross(2)   Gross(2)   Gross(2) 
                                    (mmcf)     (mbbls)    (mbbls)     (mboe)
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Proved                                                                      
 Developed producing                24,740     8,828.3    1,073.8   14,025.4
 Developed non-producing             1,959       230.1       31.8      588.4
 Undeveloped                        12,309     8,895.0      724.3   11,670.9
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Total Proved(1)                     39,007    17,953.5    1,830.0   26,284.7
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Total Probable(1)                   15,640     9,787.2      734.2   13,128.1
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Total Proved plus probable(1)       54,647    27,740.7    2,564.1   39,412.8
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Notes:                                                                      
    (1)  Total values may not add due to rounding.                          
    (2)  "Gross" Company reserves are the Company's total working interest  
         share before the deduction of any royalties and without including  
         any royalty interests of the Company.                              
    (3)  In the case of BOEs, using BOEs derived by converting gas to oil   
         equivalent in the ratio of six thousand cubic feet of gas to one   
         barrel of oil (6 MCF:1 bbl). See "Reader Advisory - BOE            
         Presentation" and "Reader Advisory - Information Regarding         
         Disclosure on Oil and Gas Reserves" below.                         



The following table summarizes the Net Present Value of the Company's share of
oil and natural gas reserves effective as at December 31, 2013. 




----------------------------------------------------------------------------
                                          Before Income Taxes Discounted At 
                                        ------------------------------------
                                        ------------------------------------
                                                  0%         10%         15%
('000s)                                          ($)         ($)         ($)
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Proved                                                                      
       Developed producing                   484,776     315,061     272,533
       Developed non-producing                15,850      10,878       9,389
       Undeveloped                           366,557     182,195     134,914
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Total Proved(1)(2)(3)                        867,183     508,134     416,836
----------------------------------------------------------------------------
Total Probable(1)(2)(3)                      527,132     195,582     136,106
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Total Proved plus Probable(1)(2)(3)        1,394,315     703,716     552,942
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Notes:                                                                      
    (1)  Total values may not add due to rounding.                          
    (2)  Forecast pricing used is based on Sproule published price forecasts
         effective December 31, 2013.                                       
    (3)  It should not be assumed that the net present values of future net 
         revenues estimated by Sproule represent fair market value of the   
         reserves. There is no assurance that the forecast price and cost   
         assumptions will be attained and variances could be material. See  
         "Reader Advisory - Information Regarding Disclosure on Oil and Gas 
         Reserves" below.                                                   



The following table provides a reconciliation of the Company's gross reserves
based on forecast prices and costs.




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     RECONCILIATION OF COMPANY GROSS RESERVES BY PRINCIPLE PRODUCT TYPE     
                                                                            
                    Light and Medium Oil             Natural Gas (1)        
                                       Proved                        Proved 
                                         Plus                          Plus 
                  Proved  Probable   Probable    Proved  Probable  Probable 
                  (MBbl)    (MBbl)     (MBbl)    (MMcf)    (MMcf)    (MMcf) 
----------------------------------------------------------------------------
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Balance at                                                                  
 December 31,                                                               
 2012 (1)       10,469.8   4,293.9   14,763.7    19,285     7,777    27,062 
Discoveries,                                                                
 Extensions                                                                 
 and Improved                                                               
 Recovery        6,052.9   6,665.0   12,717.9    15,444     7,119    22,563 
Infill                                                                      
 Drilling          852.3     224.5    1,076.8     2,041       538     2,579 
Acquisitions       133.3      18.9      152.2       841      (795)       46 
Economic                                                                    
 Factors            40.4      21.4       61.8       (48)       42        (7)
Technical                                                                   
 Revisions       2,304.7  (1,436.5)     868.2     5,051       960     6,011 
Production      (1,899.9)        0   (1,899.9)   (3,606)        0    (3,606)
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Balance at                                                                  
 December 31,                                                               
 2013           17,953.5   9,787.2   27,740.7    39,007    15,640    54,647 
----------------------------------------------------------------------------
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     RECONCILIATION OF COMPANY GROSS RESERVES BY PRINCIPLE PRODUCT TYPE     
                                                                            
                   Natural Gas Liquids                   TOTAL              
                                    Proved                           Proved 
                                      Plus                             Plus 
                 Proved  Probable Probable     Proved   Probable   Probable 
                 (MBbl)    (MBbl)   (MBbl)     (MBOE)     (MBOE)     (MBOE) 
----------------------------------------------------------------------------
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Balance at                                                                  
 December 31,                                                               
 2012 (1)         673.5     239.9    913.4   14,357.5    5,830.0   20,187.4 
Discoveries,                                                                
 Extensions                                                                 
 and Improved                                                               
 Recovery       1,088.8     449.3  1,458.1    9,635.7    8,300.8   17,936.5 
Infill                                                                      
 Drilling         138.2      36.4    174.6    1,330.7      350.5    1,681.2 
Acquisitions       45.7       3.1     48.8      319.1     (110.5)     208.6 
Economic                                                                    
 Factors            3.3         0      3.3       35.7       28.3       64.0 
Technical                                                                   
 Revisions         81.6       5.4     87.0    3,228.1   (1,271.1)   1,957.0 
Production       (121.1)        0   (121.1)  (2,622.1)         0   (2,622.1)
----------------------------------------------------------------------------
Balance at                                                                  
 December 31,                                                               
 2013           1,830.0     734.2  2,564.1   26,284.7   13,128.1   39,412.8 
----------------------------------------------------------------------------
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Notes:                                                                      
    (1)  Estimates of reserves of natural gas include associated and non-   
         associated gas.                                                    
    (2)  Figures may not add due to rounding.                               



2014 GUIDANCE AND 2013 YEAR END REPORTING

DeeThree announces that it is on track to meet its forecasts for 2014. Please
refer to the December 18, 2013 news release for details.


The Company will report its 2013 year end results and provide an operational
update on March 24, 2014.  


Reader Advisory 

Forward-Looking Statements. Certain statements contained in this press release
may constitute forward-looking statements. These statements relate to future
events or the DeeThree's future performance. All statements other than
statements of historical fact may be forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will",
"project", "predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar expressions. These statements involve known and
unknown risks, uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such forward-looking
statements. DeeThree believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be given that
these expectations will prove to be correct and such forward-looking statements
included in this press release should not be unduly relied upon by investors.
These statements speak only as of the date of this press release and are
expressly qualified, in their entirety, by this cautionary statement. 


In particular, this press release contains forward-looking statements,
pertaining to the following: projections of market prices and costs, supply and
demand for oil and natural gas, the quantity of reserves, oil and natural gas
production levels, capital expenditure programs, treatment under governmental
regulatory and taxation regimes, expectations regarding DeeThree's ability to
raise capital and to continually add to reserves through acquisitions and
development, and projections of market prices and costs. 


With respect to forward-looking statements contained in this press release,
DeeThree has made assumptions regarding, among other things: the legislative and
regulatory environments of the jurisdictions where DeeThree carries on business
or has operations, the impact of increasing competition, and DeeThree's ability
to obtain additional financing on satisfactory terms. 


DeeThree's actual results could differ materially from those anticipated in
these forward-looking statements as a result of risk factors that may include,
but are not limited to: volatility in the market prices for oil and natural gas;
uncertainties associated with estimating reserves; uncertainties associated with
DeeThree's ability to obtain additional financing on satisfactory terms;
geological, technical, drilling and processing problems; liabilities and risks,
including environmental liabilities and risks, inherent in oil and natural gas
operations; incorrect assessments of the value of acquisitions; competition for,
among other things, capital, acquisitions of reserves, undeveloped lands and
skilled personnel. Readers are cautioned that the foregoing list of factors is
not exhaustive. Additional information on these and other factors that could
affect DeeThree's operations and financial results are included in reports on
file with Canadian securities regulatory authorities and may be accessed through
the SEDAR website (www.sedar.com). 


This forward-looking information represents DeeThree's views as of the date of
this document and such information should not be relied upon as representing its
views as of any date subsequent to the date of this document. DeeThree has
attempted to identify important factors that could cause actual results,
performance or achievements to vary from those current expectations or estimates
expressed or implied by the forward-looking information. However, there may be
other factors that cause results, performance or achievements not to be as
expected or estimated and that could cause actual results, performance or
achievements to differ materially from current expectations. There can be no
assurance that forward-looking information will prove to be accurate, as results
and future events could differ materially from those expected or estimated in
such statements. Accordingly, readers should not place undue reliance on
forward-looking information. Except as required by law, the Company undertakes
no obligation to publicly update or revise any forward-looking statements. 


Test Rates. Test rates are not necessarily indicative of long-term performance
or of ultimate recovery. Neither a pressure transient analysis nor a well-test
interpretation has been carried out and the data should be considered to be
preliminary until such analysis or interpretation has been done. 


Unaudited Financial Information. Certain financial and operating information
included in this press release are based on estimated unaudited financial
results for the year ended December 31, 2013 and are subject to the same
limitations as discussed under "Forward- Looking Statements" set out above.
These estimated amounts are subject to change upon the completion of the audited
financial statements for the year ended December 31, 2013 and changes could be
material. DeeThree anticipates filings its audited financial statements and
related management's discussion and analysis for the year ended December 31,
2013 on SEDAR on March 24, 2014. 


Information Regarding Disclosure on Oil and Gas Reserves. The reserves data set
forth above is based upon an independent reserves assessment and evaluation
prepared by Sproule with an effective date of December 31, 2013 (the "Sproule
Report"). The presentation summarizes the Company's crude oil, natural gas
liquids and natural gas reserves and the net present values before income tax of
future net revenue for the Company's reserves using forecast prices and costs
based on the Sproule Report. The Sproule Report has been prepared in accordance
with the standards contained in the COGEH and the reserve definitions contained
in NI 51-101. All evaluations and reviews of future net cash flows are stated
prior to any provisions for interest costs or general and administrative costs
and after the deduction of estimated future capital expenditures for wells to
which reserves have been assigned. It should not be assumed that the estimates
of future net revenues presented in the tables above represent the fair market
value of the reserves. There is no assurance that the forecast prices and cost
assumptions will be attained and variances could be material. The recovery and
reserve estimates of our crude oil, natural gas liquids and natural gas reserves
provided herein are estimates only and there is no guarantee that the estimated
reserves will be recovered. Actual crude oil, natural gas and natural gas
liquids reserves may be greater than or less than the estimates provided herein.
The reserve data provided in this release only represents a summary of the
disclosure required under NI 51-101. Additional disclosure will be provided in
the Company's Annual Information Form filed on www.sedar.com on or before March
31, 2014. 


Non-IFRS Financial Measures. This press release includes references to financial
measures commonly used in the oil and gas industry such as "funds from
operations" and "recycle ratio", which do not have any standardized meaning
prescribed by International Financial Reporting Standards ("IFRS"). Management
believes that in addition to net income and cash flow from operating activities,
these non-IFRS financial measures are useful supplemental measures in assessing
DeeThree's ability to generate the cash necessary to repay debt or fund future
growth through capital investment. Readers are cautioned, however, that these
measures should not be construed as an alternative to net income or cash flow
from operating activities determined in accordance with IFRS as an indication of
DeeThree's performance. DeeThree's method of calculating these measures may
differ from other companies and accordingly, they may not be comparable to
measures used by other companies. For these purposes, DeeThree defines funds
from operations as cash provided by operations before changes in non-cash
operating working capital. 


BOE Presentation. References herein to "boe" mean barrels of oil equivalent
derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf)
of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used
in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy
conversion method primarily applicable at the burner tip and does not represent
a value equivalency at the wellhead. 


We seek Safe Harbor.

FOR FURTHER INFORMATION PLEASE CONTACT: 
DeeThree Exploration Ltd.
Martin Cheyne
President and Chief Executive Officer
[phone]