Evaluation of Cheetah's PPL #245 Suggests More Exploration is Needed

Cheetah Oil & Gas released the following information from its recently obtained evaluation on PPL #245 as prepared by 3D GEO of Melbourne, Australia.

3D-GEO of Melbourne Australia was engaged to complete a comprehensive evaluation of some of Cheetah's extensive land position in Papua New Guinea, including PPL #245 which is located on the North Coast of Papua New Guinea, adjacent to Cheetah's PPL #249. 3D-GEO was specifically contracted to interpret geological and geophysical data; undertake structural modeling using surface geological data and 20 kilometres of seismic data; undertake stratigraphic analysis to evaluate potential petroleum systems and undertake prospect mapping and estimate volumes.

Limited exploration work has previously been conducted in the Licence area. Two wells were drilled in the Sepik Basin (1973 and 1987) and between 1924 and 1932 nine shallow exploration wells were drilled by the Anglo Persian and Orioma Oil Companies in the vicinity of the Matapau oil seeps, flowing small quantities of API 27.7 degrees oil from a fractured reservoir and an extensional fault zone. Cheetah anticipates that state of the art exploration methods and technology will help the Company more accurately define whether or not commercially viable quantities of oil exist on this property.

3D-GEO reports that "initial indications are that 3 leads are recommended for further exploration"; Wapa'Alua; Matapau; and Forok. Within the Wapa'Alua Anticline area, 3D-GEO estimates "potential oil in place at 207.5 million barrels of oil. A preliminary estimate of oil in place at the Matapau Lead is 207.5 million barrels of oil. A preliminary estimate of oil in place at the Forok Lead is 138.3 million barrels of oil".

Altogether, 3D-GEO estimates that these three leads on Cheetah's 100% held PPL #245, could contain 553.3 million barrels of oil in place.

The Company is very encouraged by this evaluation and will work diligently to advance its understanding of this potential, cautioning that additional field mapping and modeling, maturity modeling and drilling will be required to definitively determine whether these or any other commercial quantities of hydrocarbons exist at these locations. (Please see the company website-www.cheetahoil.com-for the complete 3D-GEO Report)

The Company is evaluating and exploring for energy resources on its five 100%-owned and operated Petroleum Prospecting Licences and one Petroleum Retention Licence of approximately 8.3 million acres in Papua New Guinea.