Insignia Energy Ltd. Announces Its Financial and Operating Results for Year Ended December 31, 2008 And Files 2008 Disclosure Do

Insignia Energy Ltd. (TSX:ISN) is pleased to announce its financial and
operating results for the three months and year ended December 31, 2008 and
provide corporate guidance for 2009 as follows:




CORPORATE HIGHLIGHTS
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                                     Three months ended          Year Ended
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                           December September  December  December  December
                                 31,       30,       31,       31,       31,
                               2008      2008      2007      2008      2007
                                  $         $         $         $         $
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Financial
($ thousands, except per
 share amounts)
Oil and natural gas sales     5,135     3,831       273    10,778     1,003
Funds from operations(1)      1,551     1,488       (58)    3,760       111
 Per share - Basic and
  diluted(1)                   0.12      0.16     (0.01)     0.50      0.03
Net loss                    (22,893)   (1,425)     (376)  (24,477)     (378)
 Per share - Basic and
  diluted                     (1.82)    (0.16)    (0.09)    (3.26)    (0.10)
Working capital              27,658    30,246    16,265    27,658    16,265
Future proceeds from
 equity line(2)              25,000    25,000         -    25,000         -
Total capital resources
 available(3)                52,658    55,246    16,265    52,658    16,265
Property and equipment       32,137    49,095     4,520    32,137     4,520
Total assets                 65,701    87,384    21,333    65,701    21,333
Weighted average common
 shares outstanding
 (thousands):
 Basic and diluted(4)        12,609     9,083     4,112     7,497     3,958
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Operating
(boe conversion - 6:1 basis)
Average daily production
 Natural gas (mcf/d)          3,842     3,390       490     2,367       414
 Oil and NGL (bbls/d)           495       168         -       167         -
 Total (boe/d)                1,135       733        82       561        69
Product prices
 Natural gas ($/mcf)           6.78      7.22      6.06      7.46      6.64
 Oil and NGL ($/bbl)          59.75    101.52         -     70.33         -
 Total ($/boe)                49.16     56.81     36.35     52.46     39.85
Operating netback ($/boe)(1)  19.82     27.35      8.96     24.03     18.65
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(1) Funds from operations, funds from operations per share and operating
    netback are not defined by GAAP in Canada and are referred to as
    non-GAAP measures. Funds from operations is cash provided by operating
    activities before changes in non-cash working capital and before
    abandonment and reclamation costs.  Funds from operations per share is
    calculated by dividing funds from operations by the weighted average
    number of shares outstanding, consistent with the calculation of net
    loss per share. Operating netback per boe is calculated as total oil and
    natural gas revenue less royalties, operating costs and transportation
    costs calculated on a boe basis.
(2) Insignia has a $25 million unused equity line whereby Tricap Partners
    Ltd. are committed, prior to July 31, 2009, to subscribe for an
    additional 3,676,470 common shares of the Company at a price of $6.80
    per share.
(3) Total capital resources available includes working capital plus future
    proceeds from the equity line with Tricap Partners Ltd.
(4) Excludes shares to be issued pursuant to the Tricap Partners Ltd. equity
    line.



MESSAGE TO SHAREHOLDERS

Insignia Energy Ltd. ("Insignia or the Company") is pleased to report to its
shareholders the financial and operating results for the three and twelve months
ended December 31, 2008. We note that this is the first full reporting quarter
since the reverse take-over (the "RTO") of Flagship Energy Inc. which closed on
July 31, 2008.


Production for the quarter averaged 1,135 boe/d, comprising 495 bbls/d of oil
and NGL's and 3,842 mcf/d of natural gas. Funds from operations totaled $1.55
million based on average product prices of; $6.78 per mcf for natural gas and
$59.75 per bbl of oil. Natural gas prices were 6% lower and the oil price was
41% lower this quarter as compared to the previous quarter.


Insignia ended the fourth quarter with a strong balance sheet consisting of
$27.7 million of positive working capital and no debt. Further, and as
highlighted in Note 6 to our Financial Statements, Insignia has a $25.0 million
unused equity line whereby Tricap Partners Ltd. ("Tricap") are committed, prior
to July 31, 2009, to subscribe for an additional 3,676,470 shares of Insignia at
a price of $6.80 per share. For further details on the Tricap equity line,
please refer to the agreement titled Equity Commitment Agreement dated July 31,
2008 posted on the SEDAR website.


FOURTH QUARTER 2008 HIGHLIGHTS

- At the end of the quarter, the Company had 12.59 million common shares
outstanding and 3.67 million special voting shares (Tricap equity line) that are
scheduled to be converted into common shares prior to July 31, 2009, and which,
once converted, will result in total outstanding common shares of 16.27 million.


- In the fourth quarter, the Company operated the drilling of three (2.75 net)
wells, all of which were subsequently cased and completed for production. A 75%
well drilled on our Beaverhill Lake property was tied in subsequent to year end
and is producing approximately 400 mcf/d (300 mcf/d net). A 100% well drilled on
our Sedalia property is currently being evaluated and we expect this well to be
tied in mid year 2009 at approximately 300 mcf/d and, lastly, a 100% well at
Redwater was drilled and will be tied in pending improved commodity prices.


- In December, the Company temporarily shut in four 100% wells on its Retlaw
property due to low netbacks. These wells continue to be shut in resulting in a
temporary net production loss of approximately 35 boe/d.


- In December, the Pembina Crossfire 9-01-50-6W5 well (Insignia 15%) was shut in
for a bottom-hole pressure survey required under the Good Production Practice
("GPP") approval of the ERCB for the well. We are continuing to evaluate the
pressure information from this well in addition to other pertinent information
and expect that the well will be placed back on production sometime in mid
Q2/09. The temporary production loss net to Insignia is approximately 350 boe/d.


- The Company exited December at a production rate of approximately 1,000 boe/d.
After applying the loss of production from the shut-in Crossfire 9-01 well and
the Retlaw property, as well as the 50 boe/d production increase from work
performed to date in the first quarter of 2009, Insignia's current production is
approximately 650 boe/d.


- The Company has, inclusive of the Tricap equity line, in excess of $52.0
million of capital resources, which on a per share basis, after giving
consideration to the shares issued to Tricap pursuant to the equity line,
represents approximately $3.24 per share.


YEAR END HIGHLIGHTS

- Reserves: Total Proved 773 mboe's Gross, Total Proved plus Probable 1,818
mboe's Gross


- Net Present Value ("NPV") of Future Net Revenue Total Proved plus Probable:
Discounted at 10% - $26.8 million, Discounted at 15% -$23.1 million


- NAV per share is $4.88 per share, based on 16.27 million shares, after giving
effect to the Tricap equity line. This includes working capital, proceeds from
the equity line and NPV discounted at 10% but excludes land and seismic.


OUTLOOK

We are currently living and operating in a world with much uncertainty. Global
financial and commodity markets are undergoing significant change and this will
likely continue for much of 2009 and perhaps into 2010. Although the short term
outlook remains cloudy, the long term fundamentals in the oil and gas sector
remain promising. We are in the business to find, develop and produce a source
of energy that is not only non-renewable but is the present fuel of choice
throughout the world. And this is expected to continue for the foreseeable
future. As the world economy recovers, it is expected that the demand for this
resource will increase and, since it is limited in supply, fundamental economics
dictate that the price of this resource should go up.


Operating in this environment of uncertainly is not easy but, at Insignia, we
remain disciplined and focused to execute our strategy of acquiring and
developing quality oil and gas reserves. We will exercise patience when required
and protect our strong balance sheet but not at the expense of failing to
execute on our business plan. Our 2009 capital program will be reviewed
quarterly throughout the year in the context of commodity prices, cost
environment and financial markets. We look at 2009 as a year that will present
as many opportunities as challenges.


Insignia is uniquely positioned with a strong balance sheet with over $52.0
million in capital resources (which includes the $25.0 million Tricap equity
line) and no debt. Given the current market cycle where we believe that
acquisitions are more attractive than drilling, we are targeting accretive
corporate and asset acquisitions with these resources. To date, the acquisition
market has generally been fairly quiet stemming from both the market volatility
and the speed at which the market has changed. We do believe, however, that, as
this recession continues, the opportunities will not only become more abundant
but that there will be better quality assets presented to those that, like
Insignia, have the resources to pursue them.


Although our focus is on accretive acquisitions, our Board has approved a
conservative 2009 operating budget of between $5.0 to $8.0 million with the
allocation of this capital being split approximately 60% drilling, 20% equipping
and 20% land and seismic. The risked production additions from this program are
expected to result in an average 2009 production rate of 800-900 boe/d and a
year-end exit rate of 1,000-1,100 boe/d. Both estimates assume the Crossfire
9-01 well comes back on production towards the end of the first half of the
year. Any acquisitions completed throughout 2009 would be additive to these
estimates.


Although we believe over the long term that supply and demand fundamentals will
result in significant upside for both oil and natural gas prices, we will remain
disciplined and patient to enable us to weather an extended period of low prices
should this occur before the recovery begins. We believe our counter-cyclical
strategy of acquiring quality assets at attractive prices will serve us well
when the inevitable recovery arrives.


RESERVE HIGHLIGHTS

Insignia Energy Ltd. is pleased to provide the results of its independent
reserve evaluation prepared by GLJ Petroleum Consultants Ltd. ("GLJ") which was
prepared utilizing the methodology and definitions as set out under National
Instrument 51-101 ("NI 51-101"). Where volumes are expressed on a barrel of oil
equivalent ("boe") basis, gas volumes have been converted to boe at 6,000 cubic
feet per barrel (6 mcf/bbl).


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 at www.sedar.com on or before March
31, 2009.


Insignia has a Reserves Audit and EH&S Committee of independent board members,
which reviews the qualifications and appointment of the independent reserve
evaluators. The committee also meets with management periodically to review
reserve evaluation process and results.




SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF DECEMBER 31, 2008
FORECAST PRICES AND COSTS

                LIGHT AND MEDIUM                                NATURAL GAS
                             OIL     HEAVY OIL     NATURAL GAS      LIQUIDS
               -------------------------------------------------------------
RESERVES CATEGORY   Gross    Net  Gross    Net   Gross     Net Gross    Net
                    (Mbbl) (Mbbl) (Mbbl) (Mbbl)  (MMcf) (MMcf) (Mbbl) (Mbbl)
----------------------------------------------------------------------------
PROVED
 Developed Producing   61     44     20     24   3,393  2,889     18     12
 Developed
  Non-Producing        40     24      6      5     362    286      2      1
 Undeveloped            -      -      -      -       -      -      -      -
                   ---------------------------------------------------------
TOTAL PROVED          101     67     26     29   3,755  3,175     20     13

PROBABLE               98     69    175    150   4,526  3,634     18     12
                   ---------------------------------------------------------
TOTAL PROVED PLUS
 PROBABLE             199    136    201    179   8,281  6,809     37     25
                   ---------------------------------------------------------
                   ---------------------------------------------------------


NET PRESENT VALUES OF FUTURE NET REVENUE

                                  BEFORE INCOME TAXES DISCOUNTED AT (%/year)
                            ------------------------------------------------
RESERVES                          0%       5%       10%       15%        20%
CATEGORY                        (M$)     (M$)      (M$)      (M$)       (M$)
----------------------------------------------------------------------------
PROVED
 Producing                   17,086   15,145    13,662    12,490     11,540
 Developed Non-Producing      1,204    1,040       919       826        753
 Undeveloped                     30       26        23        20         18
                            ------------------------------------------------
TOTAL PROVED                 18,319   16,211    14,604    13,337     12,311

TOTAL PROBABLE               20,640   15,647    12,208     9,736      7,899
                            ------------------------------------------------
TOTAL PROVED PLUS PROBABLE   38,959   31,859    26,812    23,073     20,209
                            ------------------------------------------------
                            ------------------------------------------------

                                   AFTER INCOME TAXES DISCOUNTED AT (%/year)
                            ------------------------------------------------
RESERVES                          0%       5%       10%       15%        20%
CATEGORY                        (M$)     (M$)      (M$)      (M$)       (M$)
----------------------------------------------------------------------------
PROVED
 Producing                   17,086   15,145    13,662    12,490     11,540
 Developed Non-Producing      1,204    1,040       919       826        753
 Undeveloped                     30       26        23        20         18
                            ------------------------------------------------
TOTAL PROVED                 18,319   16,211    14,604    13,337     12,311

TOTAL PROBABLE               20,640   15,647    12,208     9,736      7,899
                            ------------------------------------------------
TOTAL PROVED PLUS PROBABLE   38,959   31,859    26,812    23,073     20,209
                            ------------------------------------------------
                            ------------------------------------------------

Note:

(1) Net present value of future net revenue does not represent fair market
    value.
(2) Other Company revenue and costs not related to a specific production
    group have been allocated proportionately to the above noted production
    groups.
(3) Estimated future abandonment and reclamation costs related to a property
    have been taken into account by GLJ in determining reserves that should
    be attributed to a property and, in determining the aggregate future net
    revenue therefrom, there was deducted the reasonable estimated future
    well abandonment costs.  No allowance was made, however, for reclamation
    of well sites or the abandonment and reclamation of any facilities or
    wells which have no reserves assigned.
(4) The forecast price and cost assumptions assume the continuance of
    current laws and regulations.
(5) The extent and character of all factual data supplied to GLJ were
    accepted by GLJ as represented. No field inspection was conducted.
(6) The impact of the optional Transitional Royalty Rate ("TRR") (announced
    by the Alberta Government on November 19, 2008) was considered in
    forecasts of future drilling in Alberta and taken into account in the
    above calculations of future net revenue. In the calculation of future
    net revenue the Corporation is assumed to opt for TRR on new wells where
    justified by a comparison of economics under TRR and the NRF (as defined
    herein). The effects of the short term incentive program announced by
    the Government of Alberta on March 3, 2009 were not included or
    considered in the calculation of reserves and future net revenue.


SUMMARY OF PRICING AND INFLATION RATE ASSUMPTIONS
FORECAST PRICES AND COSTS GLJ FORECAST EFFECTIVE JANUARY 1, 2009

                     OIL                              NATURAL GAS
      ----------------------------------------------------------------------
                            Natural
                                Gas  Pentanes
         WTI at                AECO      Plus   Butanes
        Cushing  Edmonton   Average  Edmonton  Edmonton Inflation  Exchange
       Oklahoma City Gate     Price       Par       Par   Rates(1)   Rate(2)
Year   ($US/Bbl)($Cdn/Bbl)($Cdn/Mcf)($Cdn/Bbl)($Cdn/Bbl)   %/Year ($US/$Cdn)
----------------------------------------------------------------------------

Forecast
2009      57.50     68.61      7.58     69.98     52.14       2.0     0.825
2010      68.00     78.94      7.94     80.52     61.57       2.0     0.850
2011      74.00     83.54      8.34     85.21     65.16       2.0     0.875
2012      85.00     90.92      8.70     92.74     70.92       2.0     0.925
2013      92.01     95.91      8.95     97.82     74.81       2.0     0.950
2014      93.85     97.84      9.14     99.80     76.32       2.0     0.950
2015      95.73     99.82      9.34    101.81     77.86       2.0     0.950
2016      97.64    101.83      9.54    103.87     79.43       2.0     0.950
2017      99.59    103.89      9.75    105.97     81.03       2.0     0.950
2018     101.59    105.99      9.95    108.10     82.67       2.0     0.950
2019+       Escalated oil, gas and product prices at 2% per year thereafter

Notes:

(1) Inflation rates for forecasting prices and costs.
(2) Exchange rates used to generate the benchmark reference prices in this
    table.


RECONCILIATION OF GROSS RESERVES
BY PRINCIPAL PRODUCT TYPE
FORECAST PRICES AND COSTS

                         LIGHT AND MEDIUM OIL                     HEAVY OIL
                  ----------------------------------------------------------
                                       Proved                        Proved
                                         Plus                          Plus
                   Proved  Probable  Probable    Proved  Probable  Probable
FACTORS             (Mbbl)    (Mbbl)    (Mbbl)    (Mbbl)    (Mbbl)    (Mbbl)
----------------------------------------------------------------------------
December 31, 2007       -         -         -         -         -         -
 Extensions             -         -         -         -         -         -
 Improved Recovery      -         -         -         -         -         -
 Technical                                  -
 Revisions              -         -                   -         -         -
 Discoveries           65        36       101         -         -         -

                             CONVENTIONAL GAS                           NGL
                  ----------------------------------------------------------
                                       Proved                        Proved
                                         Plus                          Plus
                   Proved  Probable  Probable    Proved  Probable  Probable
FACTORS             (MMcf)    (MMcf)    (MMcf)    (Mbbl)    (Mbbl)    (Mbbl)
----------------------------------------------------------------------------
December 31, 2007   1,503     1,885     3,388         -         -         -
 Extensions           123        90       213         1         1         2
 Improved Recovery      -         -         -         -         -         -
 Technical
 Revisions           (174)     (169)     (343)        -         -         -
 Discoveries           48        24        72         1         1         2


                 LIGHT AND MEDIUM OIL                 HEAVY OIL            
             ---------------------------------------------------------------
                                    Proved                           Proved
                                      Plus                             Plus
              Proved   Probable   Probable     Proved   Probable   Probable
FACTORS        (Mbbl)     (Mbbl)     (Mbbl)     (Mbbl)     (Mbbl)     (Mbbl)
----------------------------------------------------------------------------
 Acquisitions     87         62        149         31        175        207
 Dispositions      -          -          -          -          -          -
 Production      (51)         -        (51)        (6)         -         (6)
 Economic
 Factors           -          -          -          -          -          -
----------------------------------------------------------------------------
December 31,
2008             101         98        199         26        176        201
----------------------------------------------------------------------------



                     CONVENTIONAL GAS                       NGL            
             ---------------------------------------------------------------
                                    Proved                           Proved
                                      Plus                             Plus
              Proved   Probable   Probable     Proved   Probable   Probable
FACTORS        (MMcf)     (MMcf)     (MMcf)     (Mbbl)     (Mbbl)     (Mbbl)
----------------------------------------------------------------------------
 Acquisitions  3,110      2,685      5,795         21         16         37
 Dispositions      -          -          -          -          -          -
 Production     (865)         -       (865)        (4)         -         (4)
 Economic
 Factors          10         11         21          -          -          -
----------------------------------------------------------------------------
December 31,
2008           3,755      4,526      8,281         20         18         37
----------------------------------------------------------------------------

Note: Insignia has no unconventional reserves (Bitumen, Synthetic Crude
      Oil, Natural Gas from Coal, etc.).



The discussion of our oil and natural gas production and related performance
measures is presented on a working-interest, before royalties basis. For the
purpose of calculating unit information, natural gas is converted to a barrel of
oil equivalent ("boe") using six thousand cubic feet of natural gas equal to one
barrel of oil. Readers are cautioned that boe's may be misleading, particularly
if used in isolation. A conversion ratio of six thousand cubic feet of natural
gas to one barrel of oil is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. In this press release: boe/d means boe per day;
mcf/d means thousand cubic feet per day, bbl means barrel, mbbl means thousand
barrels, mmcf means million cubic feet and mboe means thousand boe's.


Investors are further cautioned that the preparations of financial statements in
accordance with Canadian generally accepted accounting principles ("Canadian
GAAP") requires management to make estimates and assumptions that affect the
reported amounts of our assets and liabilities and the disclosure of contingent
assets and liabilities at the date of the financial statements and our revenues
and expenses during the reporting period. Our management reviews these
estimates, including those related to accruals, environmental and asset
retirement obligations, income taxes, and the determination of proved reserves
on an ongoing basis. Changes in facts and circumstances may result in revised
estimates and actual results may differ from these estimates.


Certain financial measures referenced to in this news release are not prescribed
by Canadian GAAP. These non-GAAP financial measures do not have any standardized
meaning and therefore are unlikely to be comparable to similar measures
presented by other companies. We include these measures because management
utilizes them to analyze operating and financial performance. The additional
information should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with the Canadian GAAP. We use
funds from operations which is cash provided by operating activities before
changes in non-cash working capital and before abandonment and reclamation
costs. Funds from operations per share is calculated by dividing funds from
operations by the weighted average number of shares outstanding, consistent with
the calculation of net loss per share. Funds from operations netback per boe is
calculated as funds from operations divided by our total boe produced. We also
use operating netback per boe. This is calculated as total oil and natural gas
revenue less royalties, operating costs and transportation costs calculated on a
boe basis.


Forward Looking Statements

Statements throughout this Press Release that are not historical facts may be
considered to be "forward looking statements". These forward looking statements
sometimes include words to the effect that management believes or expects a
stated condition or result. All estimates and statements that describe the
Company's objectives, goals, or future plans, including, without limitation,
management's assessment of future plans and operations, anticipated commodity
prices and their impact, timing of expenditures, budgeted capital expenditures
and the method of funding thereof, timing of drilling and wells to be brought on
production, completion and tie-in of wells, expected royalty rates and changes
to the Alberta royalty regime and the possible effect thereof on the Company and
its allocation of capital, expected royalty rates, operating costs and general
and administrative expenses and the expected levels of production rates and
anticipated acquisition and benefits derived therefrom may constitute
forward-looking statements under applicable securities laws and necessarily
involve risks including, without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, volatility of commodity prices, imprecision of reserve
estimates, environmental risks, competition from other producers, incorrect
assessment of the value of acquisitions, failure to complete and/or realize the
anticipated benefits of acquisitions, delays resulting from or inability to
obtain required regulatory approvals and ability to access sufficient capital
from internal and external sources and changes in the regulatory and taxation
environment. As a consequence, the Company's actual results may differ
materially from those expressed in, or implied by, the forward-looking
statements. Forward-looking statements or information are based on a number of
factors and assumptions which have been used to develop such statements and
information but which may prove to be incorrect.


Although the Company believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue reliance should
not be placed on forward-looking statements because the Company can give no
assurance that such expectations will prove to be correct. In addition to other
factors and assumptions which may be identified in this document, assumptions
have been made regarding, among other things: the ability of the Company to
obtain equipment and services in a timely and cost efficient manner; drilling
results; the ability of the operator of the projects which the Company has an
interest in to operate the field in a safe, efficient and effective manor; field
production rates and decline rates; the ability to replace and expand oil and
natural gas reserves through development of exploration; future oil and natural
gas prices; interest rates; the regulatory framework regarding royalties, and
the ability of the Company to successfully market its oil and natural gas
products. Readers are cautioned that the foregoing list of factors is not
exhaustive. Additional information on these and other factors that could affect
the Company's operations and financial results are included elsewhere herein and
in reports on file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com), or at the Company's website
(www.insigniaenergy.ca). Furthermore, the forward-looking statements contained
in this Press Release are made as at the date of this Press Release and the
Company does not undertake any obligation to update publicly or to revise any of
the included forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be expressly required by applicable
securities laws.


Insignia is a publicly listed junior oil and gas exploration and development
company based in Calgary, Alberta. Insignia's shares trade on the TSX under the
symbol "ISN".


Copies of the Financial Statements, Management's Discussion and Analysis and
Annual Information Form for the year ended December 31, 2008 will be filed with
Canadian securities regulators and will be available on SEDAR and can be
accessed at www.sedar.com or by visiting Insignia's website at
www.insigniaenergy.ca.