Painted Pony Petroleum Announces Major Middle Montney Discovery Update and Light Oil Acquisition

Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX
VENTURE:PPY.A) (TSX VENTURE:PPY.B) is pleased to announce a major discovery in
the middle Montney interval of northeast British Columbia and a light oil
acquisition in southeast Saskatchewan. This is an update to the Middle Montney
discovery announced in the Company's press release dated October 18, 2010.


MIDDLE MONTNEY DISCOVERY IN THE CAMERON/KOBES AREA - UPDATE

The well Kobes a-A10-J/94-B-09 (20% working interest) flowed in-line at a
restricted rate of 6.0 million cubic feet per day (mmcf/d) at 1,424 psi, after
more than ten days of testing. The flow rate has stabilized and management
estimates the well is capable of flowing at gathering system pressure at
approximately 7.5 mmcf/d. 


The middle Montney had not previously been tested horizontally in the region,
although it is present across Painted Pony's entire Montney land base, now 129
net sections (82,800 net acres). This middle interval is over 100 meters thick
and highly homogenous in the area. No reserves have been booked to the middle
Montney to date.


This discovery is expected to add significantly to reserves and drilling
potential for the Company's Montney acreage. 


SE SASKATCHEWAN ACQUISITION

Painted Pony closed a $10.6 million acquisition of certain light oil assets of a
private company (the "Acquisition") in southeast Saskatchewan on October 26,
2010. The assets are mostly operated with high working interest, and feature
high quality, high netback, low decline production, with low risk developmental
upside. The assets have approximately 2,950 net acres of land, of which 47% is
undeveloped. Production is approximately 90 barrels of oil equivalent per day
("boe/d"). Fekete Associates Inc. prepared a mechanical update for the
Acquisition, effective September 30, 2010, of their reserves evaluation dated
December 31, 2009. As at September 30, 2010, proved plus probable reserves for
the acquired assets are 1.1 million barrels of oil equivalent ("boe") with a net
present value of $21.8 million (discounted at 10%). No material changes to the
assets occurred prior to the update.


Acquisition metrics are approximately $9.67 per boe on a proved plus probable
basis. The reserve life index of the assets is 33 years on a proved plus
probable basis. On a flowing metric basis, the acquisition cost is $118,000
boe/d.


The Company has identified numerous low risk drilling locations on the assets.
Painted Pony is currently surveying three locations. 


The information contained herein is for information purposes only and is not an
invitation to purchase securities listed on TSX Venture Exchange and/or Toronto
Stock Exchange. TMX Group Inc. and its affiliates do not endorse or recommend
any securities referenced. Neither TMX Group Inc. nor its affiliated companies
represents, warrants or guarantees the accuracy or the completeness of the
information. You should not rely on the information contained herein for any
trading, business or financial purposes. TMX Group Inc. and its affiliates
assume no liability for any errors or inaccuracies herein or any use or reliance
upon this information.


Painted Pony Petroleum Ltd. was recognized as a TSX Venture 50(R) company in
2010. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.


Advisory

Special Note Regarding Forward-Looking Information

This news release contains certain forward-looking statements, which are based
on numerous assumptions including but not limited to (i) drilling success; (ii)
production; (iii) future capital expenditures; and (iv) cash flow from operating
activities. The reader is cautioned that assumptions used in the preparation of
such information may prove to be incorrect.


With respect to forward-looking statements contained in this document, Painted
Pony has made a number of assumptions. The key assumptions underlying the
aforementioned forward-looking statements include assumptions that: (i)
commodity prices will be volatile throughout 2010; (ii) capital, undeveloped
lands and skilled personnel will continue to be available at the level Painted
Pony has enjoyed to date; (iii) Painted Pony will be able to obtain equipment in
a timely manner to carry out exploration, development and exploitation
activities; (iv) production rates in 2010 are expected to show growth from the
first quarter of 2010; (v) Painted Pony will have sufficient financial resources
with which to conduct the capital program; and (vi) the current tax and
regulatory regime will remain substantially unchanged. Certain or all of the
forgoing assumptions may prove to be untrue.


Certain information regarding Painted Pony set forth in this document, including
the results of subsequent independent evaluations of Painted Pony's reserves
and/or resources, management's assessment of Painted Pony's future plans and
operations, number, type and timing of wells to be drilled, the planning,
development and risk assessment of certain prospects, production estimates, and
expected production growth may constitute forward-looking statements under
applicable securities laws and necessarily involve substantial known and unknown
risks and uncertainties. These forward-looking statements are subject to
numerous risks and uncertainties, certain of which are beyond Painted Pony's
control, including without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, environmental
risks, inability to obtain drilling rigs or other services, capital expenditure
costs, including drilling, completion and facility costs, unexpected decline
rates in wells, wells not performing as expected, delays resulting from or
inability to obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources, the impact of general
economic conditions in Canada, the United States and overseas, industry
conditions, changes in laws and regulations (including the adoption of new
environmental laws and regulations) and changes in how they are interpreted and
enforced, increased competition, the lack of availability of qualified personnel
or management, fluctuations in foreign exchange or interest rates, and stock
market volatility and market valuations of companies with respect to announced
transactions and the final valuations thereof. Readers are cautioned that the
foregoing list of factors is not exhaustive. Painted Pony's actual results,
performance or achievement could differ materially from those expressed in, or
implied by, these forward-looking statements and, accordingly, no assurance can
be given that any of the events anticipated by the forward-looking statements
will transpire or occur, or if any of them do so, what benefits, including the
amount of proceeds, that the Company will derive therefrom. All subsequent
forward-looking statements, whether written or oral, attributable to the Company
or persons acting on its behalf are expressly qualified in their entirety by
these cautionary statements.


Additional information on these and other factors that could affect Painted
Pony'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) or Painted Pony's website (www.paintedpony.ca).


The forward-looking statements contained in this document are made as at the
date of this news release and Painted Pony 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 required by applicable securities laws.


Special Note Regarding Disclosure of Reserves 

It should not be assumed that an estimate of net present value represents the
fair market value of the reserves.


BOEs may be misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.