Mako Hydrocarbons Ltd : August 3, 2012 New Well Production from Provost

New Well Production from Provost

NEWS RELEASE

ASX Code: MKE OTC QX Code: MAEEY

August 3, 2011 - Calgary; August 4, 2012 - Perth
Mako Hydrocarbons Ltd. ("Mako" or the "Company") today announces new production from Provost. The first of three recently completed wells commenced production at the level of 80 barrels per day of heavy oil. This is a higher level of initial oil production due to a lower level of associated water production than was initially expected. Current field production is approximately 110 barrels per day of heavy oil.
With field operations recovering from the severe weather recently experienced in the Provost area, significant progress has been made to upgrading battery facilities there. Electrification has been completed as planned for the well pad sites, and will provide power for the existing well pump units plus the next tranche of future drilling locations. All gathering system flowline construction is complete. The free water knockout vessel and water disposal pump have been positioned on site, and all facility piping is near completion. Remaining activities to make the upgraded battery fully operational include site tanks inspection and repairs, fluid level controller modifications, and completion of necessary instrumentation installation.
Once battery facility upgrades are completed in the next few weeks, the other two recently drilled wells will commence production.
In addition to the update of field operating activities, Mako advises that 520,500 warrants, exercisable at AUS$0.29 each, have lapsed due to their expiry. Pursuant to Listing Rule
3.10A, the Company also advises that securities being released from escrow on August 24,
2012 include 22,250,000 ordinary shares and 49,000,000 options priced at AUS$0.25, which expire on May 31, 2013. Mako will be applying to the Australian Stock Exchange to have these ordinary shares listed for trading.

Competent Person Statement: The information in this Announcement has been produced by the Company, and reviewed and confirmed by Mr. Stuart Keck, Chief Operating Officer of the Company. Mr. Keck has sufficient experience that is relevant to the nature of hydrocarbon resources and prospects under consideration, and to the Company's field

Shares outstanding:

166,586,296

Current share price:

$0.054 (Aug. 3, 2012)

12 month price range:

$0.18 (high) - $0.05 (low)

Board of Directors Mr. George Watson Chairman

Mr. Simon Owen

Executive Vice Chairman

Mr. Paul Griese

Managing Director

Mr. Graham Anderson

Non Exec Director

Mr. Garry Mihaichuk

Non Exec Director

Management Mr. Paul Griese President & Managing Director

Mr. Cam Bolter

Vice President, Exploration

Mr. Brad Crowe

Vice President, Land

Mr. Stuart Keck

Chief Operating Officer

Mr. Jim Wilson

CFO & Corporate Secretary

Mr. Simon Owen

Executive Vice Chairman

Mr. Leonard Math

Asst. Corporate Secretary

Mako Hydrocarbons Ltd. [e-mail] |

www.makohydrocarbons.com | ABN: 33 009 218 955

Australian Office: Canadian Office:

14 Emerald Terrace, Suite 800, 521 Third Avenue S.W.

West Perth, WA, Australia 6005 Calgary, Alberta, Canada, T2P 3T3

Main: [phone] | Fax: [phone] Main: [phone] | Fax: [phone]

activities discussed in this news release. His academic and professional qualifications comply with the criteria for
"competence" under clauses 18-21 of the Valmin Code 2005 and ASX Listing Rule 5.11.

Mako Hydrocarbons Ltd. is an Australia Stock Exchange listed and western Canada based oil and gas exploration and production company, which is focused on the light oil and liquids rich natural gas area of the Western Canadian Sedimentary Basin in west central Alberta.

For further information, please contact: Paul Griese President & Managing Director [phone] Simon Owen Executive Vice Chairman [phone]