Whitemud Resources Inc. Provides Update on Various Matters

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES. 


Whitemud Resources Inc. ("Whitemud")(TSX VENTURE:WMK.H) is pleased to announce
that the second amended proposal (the "Second Amended Proposal") sponsored by
Kasten Energy Inc. ("Kasten") pursuant to Part III, Division I of the Bankruptcy
and Insolvency Act (Canada) was approved by the various classes of creditors of
Whitemud on July 21, 2011and was ratified by the Court of Queen's Bench of
Alberta, Judicial District of Calgary by a court order (the "Court Order")
issued on August 12, 2011. (Further information on both the receivership of
Whitemud and the Second Amended Proposal can be accessed on the website of
Deloitte & Touche Inc. at www.deloitte.ca under the Insolvency and Restructuring
link.) 


Pursuant to the Court Order, the following individuals were named as the interim
directors of Whitemud to hold office until the next annual meeting of its
shareholders: Al J. Kroontje, Stanley A. Owerko, Barry Lester, Randall J.
Findlay and Vince Davoli. As interim directors, they now have control and
operation of the property, assets and undertaking of Whitemud. The directors
have now appointed the following officers: Stanley A. Owerko (Chief Executive
Officer), David Storoshenko (President), Michele Ward (Chief Financial Officer)
and Robert J. Iverach, Q.C. (Secretary). 


Kasten will carry out the terms of the Second Amended Proposal and Kasten (or
its nominee(s)) will receive 16,000,000 Class "A" Common Shares and 326,499,700
Class "B" Non-voting Common Shares from treasury. After the issuance of these
new shares, there will be 34,026,300 Class "A" Common Shares and 326,499,700
Class "B" Non-voting Common Shares issued and outstanding. 


The new board of directors and management of Whitemud will be taking steps to
have the cease trade order that was issued against it by the Alberta Securities
Commission on December 3, 2010 and any other cease trade orders issued against
Whitemud revoked and will be analyzing Whitemud's operations and potential
markets to determine how and when mining and processing operations can be
recommenced at Whitemud's facilities in southern Saskatchewan.


About Whitemud Resources Inc. 

Whitemud is a Canadian-based corporation holding mineral rights to exploit a
large kaolin deposit in southern Saskatchewan, together with a state of the art,
recently constructed processing facility located on the property. Whitemud's
product, Whitemud(MK), is a cement-grade metakaolin that enhances the
performance of cement for oil and gas wells and construction applications. The
Company uses a patented process that minimizes environmental impact.  


On December 3, 2011, trading in the securities of Whitemud was suspended by the
TSX Venture Exchange ("TSXV") and on Feb 28, 2011, Whitemud's listing was
transferred to the NEX board of the TSXV where it remains suspended.


Forward Looking Statements: Certain statements contained in this press release
constitute forward-looking statements that 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. No
assurance can be given that these expectations will prove to be correct and such
forward-looking statements included in this release should not be unduly relied
upon. Actual results could differ materially as a result of changes in
Whitemud's plans, legislative and regulatory changes, general economic, market
and business conditions as well as other risks associated with anticipated
capital requirements, lack of diversification and overall technical and economic
feasibility of Whitemud's plans. These statements speak only as of the date of
this release or as of the dates specified in the documents referred to in this
release, as the case may be.