TAG Oil's Common Shares to Begin Trading on Consolidated Basis

TAG Oil's common shares will begin trading on a consolidated basis on February 4, 2009. Shareholders approved the consolidation of the Company's common shares on the basis of five common shares being consolidated into one common share at the Company's annual and special meeting of shareholders held on December 19, 2008. As a result of the share consolidation the Company's trading symbol on the OTC Bulletin Board ("OTC BB") will change from "TAGOF" to "TAOIF". The Company's trading symbol on the TSX Venture Exchange will not change.

The Company also announces that as of February 3, 2009 the Company has purchased 5,689,000 of its common shares under its Normal Course Issuer bid launched in September 2008, leaving a pre-consolidation balance of 1,894,858 shares (378,972 shares post-consolidation) that the Company may purchase under its current bid.

As a result of the cancellation of 5,689,000 of the Company's shares purchased to date under the normal course issuer bid and the effects of the share consolidation the Company will have approximately 17,188,416 common shares outstanding on February 4, 2009.