Mr. Chris Beltgens reports

EAST WEST PETROLEUM PROVIDES OPERATIONAL UPDATE

East West Petroleum Corp. has provided the following update on its operations in New Zealand and Romania. TAG Oil Ltd. is the operator and co-owner of all of the company's licences in New Zealand, while in Romania, Naftna Industrija Srbije (NIS) is the operator of all four of the company's concessions.

PEP 54877: Cheal North East permit (30 per cent EW)

Over a test period of 11 days the Cheal-E6 well continues to naturally free flow under a 16/64ths-inch choke at stable rates. During the period, Cheal-E6 produced at an average gross rate of 325 barrels of oil equivalent per day (boepd) (81 per cent oil) for a total of 3,178 barrels of oil and 4,456 thousand standard cubic feet of gas. The well will be shut in for a planned pressure buildup test up for a period of three days and then will resume continuing production into the Cheal E-site production facilities.

The Cheal-E1, E4 and E5 wells continue to produce at steady rates of approximately 255 boepd (76 per cent oil) net to East West with little decline to date. With the additional production from E6, production is forecast to increase 38 per cent to over 350 boepd net to East West.

As discussed in East West's Nov. 5 press release, the next work at E-site will include the recompletion of the Cheal-E2 well in the Mt. Messenger formation in first quarter. The E2 well initially targeted the Urenui formation; however following a joint venture review of drilling and completion operations, it was determined that mechanical completion issues prevented commercial production from the Urenui sandstones. After comparing these results with all of the E-site drilling data now available and comparing with seismic coverage over the permit, the joint venture has decided to isolate the Urenui formation in this well and recomplete Cheal-E2 to establish production from the Mt. Messenger formation. Following recompletion, the E2 well will undergo flow testing and temperature and pressure analysis. The estimated net cost to East West is approximately $240,000 (New Zealand).

David Sidoo, president and chief executive officer of East West, commented: "We are very pleased to see the positive test results from E6 well, which when placed on permanent production will provide a significant increase to East West's production and cash flow. Through low operating costs and low overhead, our operations in New Zealand continue to generate revenue and operating cash flow for the company to fund upcoming work despite the recent fall in oil prices. The recompletion of the E2 well could result in further near-term growth of our established production base."

PEP 55770: East Coast permit (40 per cent East West)

East West has elected not to proceed with its participation in PEP 55770 in the East Coast basin of New Zealand and has withdrawn from the joint venture. Under the terms of the joint operating agreement, East West was committed to finance 100 per cent of the acquisition of 60 kilometres of 2-D seismic data and to finance drilling of an exploratory well. Given the lack of exploration success to date in the East Coast basin, East West has decided to preserve its capital and remain focused on opportunities in its core areas.

Romania (15 per cent East West)

East West has been informed by its partner NIS that the National Agency for Mineral Resources (NAMR) in Romania has granted NIS and East West an extension of 2-1/2 years to the phase 1 exploration period for the block 2 (Tria) concession. The partners now have until June, 2017, to complete the phase 1 work program on the Tria concession, which includes the acquisition of 2-D and 3-D seismic and the drilling of three exploration wells. East West is fully carried through the phase 1 and phase 2 exploration programs on all licences in Romania.

We seek Safe Harbor.