Canadian based Australian company announces sale of Duvernay Acreage, Canada

Canadian Office:

Suite 800, 521 3rd Ave. S.W. Calgary, AB, Canada T2P 3T3
P: +1 403.476.7850

January 30, 2012

Canadian based Australian company announces sale of Duvernay

Acreage, Canada

(Calgary, January 27, 2012)

Mako Energy Limited, a Canadian-based Australian company, (ASX : MKE, "Mako") reports today that they, along with their Alberta Joint Venture (AJV) partners, have sold a 100 per cent working interest in the Duvernay Formation underlying eight sections (5,120 acres; 2,048 hectares) of land in the Rimbey, Alberta area. The land was sold to a Canadian resource company that is active in the vicinity of Mako's Duvernay land holdings. The transaction closed on January 25, 2012 in Canada. Mako believes that the price agreed upon is consistent with the market value established by other transactions in the area.
Although the sold lands are prospective for unconventional Duvernay shale development, they were regionally remote from Mako's core Duvernay land holdings. Mako and its AJV partners have retained their existing rights in the Rock Creek formation in the sold lands which are believed to be highly prospective for horizontal drilling opportunities. Sale proceeds will be used in exploration and development drilling.
Mako and AJV partners are also announcing that at a recent Crown land sale they have acquired a further 20 per cent working interest in 4.5 sections (2.880 acres; 1.152 hectares) of land which is prospective for Duvernay shale and Rock Creek. These lands (unlike those sold) border the existing land holdings of the Joint Venture Arrangement that was announced in December of 2011.
Mako is an Australian company whose headquarters are located in Calgary, Alberta, Canada with operations entirely focused within the prolific Western Canadian Sedimentary Basin. Mako is one of few Australian listed companies who are benefitting from the application of horizontal drilling and multiple stage fracturing technologies that are improving economic margins in existing plays and enabling significant new hydrocarbon plays in North America.

ASX Code: MKE

Shares on issue:

144,336,296

Current share price:

$0.135 (27 Jan 2012)

12 month range:

$0.37 (high) - $0.09(low)

Board of Directors

Mr George Watson

Chairman

Mr Simon Owen

Executive Vice Chairman

Mr Paul Griese

Managing Director

Mr Garry Mihaichuk

Non Exec Director

Mr Graham Anderson

Non Exec Director

Management

Mr Paul Griese Managing Director and President

Mr James Wilson

CFO

Mr Cam Bolter

Executive Vice President

Mr Leonard Math

Company Secretary

MAKO Energy Limited E: [e-mail] | W: www.makoenergy.com.au | ABN: 33 009 218 955

Australian Office:

MAKO Energy Limited | Level 1, 681 Murray Street, West Perth WA Australia 6005

Administration: [phone] | F: [phone]

Canadian Office:

MAKO Energy Limited | Suite 800, 521 Third Ave

S.W. Calgary, Alberta, Canada, T2P 3T3

P: [phone] | F: [phone]

For more information please contact:
Paul Griese, Managing Director and President
Mako Energy Limited
[phone]
Simon Owen, Executive Vice Chairman
Mako Energy Limited
[phone]

MAKO Energy Limited E: [e-mail] | W: www.makoenergy.com.au | ABN: 33 009 218 955

Australian Office:

MAKO Energy Limited | Level 1, 681 Murray Street, West Perth WA Australia 6005

Administration: [phone] | F: [phone]

Canadian Office:

MAKO Energy Limited | Suite 800, 521 Third Ave

S.W. Calgary, Alberta, Canada, T2P 3T3

P: [phone] | F: [phone]