AIF Altus Group Limited

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the
Company") and the Operator, Talisman (Block K44) B.V. ("Talisman"), is preparing
to complete the Kurdamir-2 well after successfully finishing an additional
cased-hole test in the Oligocene Formation (DST#7). The test was conducted over
a 24 metres thick interval between depths of 2,528 metres and 2,552 metres. It
achieved a stabilized flow rate of 2,184 barrels per day ("bbl/d") of light, 42
degree API oil, together with 10.4 million cubic feet per day ("mmcf/d") of
natural gas. The gas to oil ratio likely indicates a partial contribution from
the gas cap due to free gas drawdown through natural fractures in the reservoir.
The 3.5 inch tubing size used to conduct this test, together with the
unanticipated gas contribution from the gas cap, restricted the oil flow from
the reservoir. As a result, the Operator and WesternZagros have agreed that
further tests of shallower zones in the Oligocene reservoir are unnecessary and
are now working together on plans to realize the maximum oil production
potential from the Oligocene reservoir in Kurdamir-2, potentially through an
extended well test subject to the approval of the Kurdistan Regional Government.


Simon Hatfield, WesternZagros's Chief Executive Officer commented,

"This second cased hole test in the Oligocene further reinforces our view that
Kurdamir is a giant discovery. The results of the entire Oligocene testing
program have exceeded our expectations for both thickness of oil column and
reservoir quality. It is apparent that the intervals tested have excellent
permeability and, with optimally designed well completions to isolate the gas
cap, are expected to yield oil production rates far in excess of the currently
constrained rates. The results continue to support our belief that the Oligocene
has the potential to hold over a billion barrels of recoverable oil. We are
excited about our next appraisal well in the Kurdamir structure at Kurdamir-3.
Kurdamir-3 will spud as soon as possible in the new year."


This most recent cased-hole test was conducted over a perforated interval of 24
metres thick in fractured carbonates in the main porous zone of the Oligocene
reservoir. The flow rates of 2,184 bbl/d of light oil and 10.4 mmcf/d of natural
gas were recorded after flowing and stabilizing the well for three days at
progressively larger choke sizes. The stabilized rate was achieved on a 44/64"
choke with a wellhead flowing pressure of 1,705 psi. The oil was high-quality 42
degree API and no formation water was detected. The oil rate was restricted due
to gas choking within the 3.5 inch completion tubing. The gas to oil ratio is
indicative of gas being drawn down from the gas-oil contact, which is 83 metres
above the test interval. Larger diameter tubing would allow higher oil test
rates. For example, the Company expects that the interval previously tested in
DST#6 could flow oil at rates up to 7,000 bbl/d if larger tubing is used. The
Company is in the process of completing a similar analysis for DST#7 and to
determine the optimum tubing size for the completion.


The table below summarizes the flow rates from all three intervals tested within
the 168 metres gross hydrocarbon column (22 metres of gas and 146 metres of oil)
encountered in the Oligocene reservoir in the Kurdamir-2 well. The three
intervals are composed of the two recent cased hole tests (DST#6 and DST#7) and
the first open hole test conducted in March 2012 (DST#1) which was conducted
across the gas-oil contact.




----------------------------------------------------------------------------
Kurdamir-2 Oligocene          Tested Interval  Stabilized Oil Rate  Gas Rate
 Reservoir Tests                     (metres)              (bbl/d)  (mmcf/d)
----------------------------------------------------------------------------
DST#1                             2,422-2,477                  950       7.3
Open hole test                                                              
 previously announced                                                       
 March 26, 2012                                                             
----------------------------------------------------------------------------
DST#7                             2,528-2,552                2,184      10.4
Second cased hole test                                                      
----------------------------------------------------------------------------
DST#6                             2,570-2,590                3,450       8.8
First cased hole test                                                       
 previously announced                                                       
 Nov 19, 2012                                                               
----------------------------------------------------------------------------



The Kurdamir-2 test and wireline log data have been analyzed in order to update
contingent and prospective resource estimates for the Oligocene reservoir. The
Company expects that the contingent resource estimates will materially increase.
Updated resource estimates will be publicly released once confirmed by the
Company's independent auditors. The current independently audited unrisked mean
estimates for the contingent resources in the Oligocene reservoir of the
Kurdamir structure are 990 billion cubic feet of gas, 39 million barrels
("MMbbl") of condensate and 147 MMbbl oil as of April 20, 2012. The current
independently audited unrisked mean estimate for the prospective resources in
the Oligocene reservoir is 1,150 MMbbl prospective oil resources as of May 31,
2012. 


Following the completion of Kurdamir-2, the Operator will move the rig to the
Kurdamir-3 well location for an anticipated spud date in February 2013. 


WesternZagros and Talisman each have a 40 percent working interest in the
Kurdamir Block with the Kurdistan Regional Government ("KRG") holding the
remaining 20 percent.


About WesternZagros Resources Ltd. 

WesternZagros is an international natural resources company engaged in acquiring
properties and exploring for, developing and producing crude oil and natural gas
in Iraq. WesternZagros, through its wholly-owned subsidiaries, holds a 40
percent working interest in two Production Sharing Contracts with the Kurdistan
Regional Government in the Kurdistan Region of Iraq. WesternZagros's shares
trade in Canada on the TSX Venture Exchange under the symbol "WZR".


This news release contains certain forward-looking information relating, but not
limited, to operational information, future drilling and testing plans, and the
timing associated therewith. Forward-looking information typically contains
statements with words such as "anticipate", "plan", "estimate", "expect",
"potential", "could", or similar words suggesting future outcomes. The Company
cautions readers not to place undue reliance on forward-looking information as
by its nature, it is based on current expectations regarding future events that
involve a number of assumptions, inherent risks and uncertainties, which could
cause actual results to differ materially from those anticipated by
WesternZagros. In addition, the forward-looking information is made as of the
date hereof, and the Company assumes no obligation to update or revise such to
reflect new events or circumstances, except as required by law.


Forward-looking information is not based on historical facts but rather on
management's current expectations and assumptions regarding, among other things,
plans for and results of drilling activity and testing programs, future capital
and other expenditures (including the amount, nature and sources of funding
thereof), continued political stability, and timely receipt of any necessary
government or regulatory approvals. Although the Company believes the
expectations and assumptions reflected in such forward-looking information are
reasonable, they may prove to be incorrect. Forward-looking information involves
significant known and unknown risks and uncertainties. A number of factors could
cause actual results to differ materially from those anticipated by
WesternZagros including, but not limited to, risks associated with the oil and
gas industry (e.g. operational risks in exploration; inherent uncertainties in
interpreting geological data; changes in plans with respect to exploration or
capital expenditures; interruptions in operations together with any associated
insurance proceedings; the uncertainty of estimates and projections in relation
to costs and expenses and health, safety and environmental risks), the risk of
commodity price and foreign exchange rate fluctuations, the uncertainty
associated with negotiating with foreign governments and risk associated with
international activity. For further information on WesternZagros and the risks
associated with its business, please see the Company's Annual Information Form
dated March 26, 2012 (the "AIF"), which is available on SEDAR at www.sedar.com.


In addition, statements relating to "contingent resources" and "prospective oil
resources" contained herein are deemed to be forward-looking statements, as they
involve the implied assessment, based on certain estimates and assumptions that
the resources described can be economically produced in the future. Terms
related to resource classifications referred to herein are based on the
definitions and guidelines in the Canadian Oil and Gas Evaluation Handbook which
are as follows. "Contingent resources" are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from known
accumulations using established technology or technology under development, but
which are not currently considered to be commercially recoverable due to one or
more contingencies. Contingent resources have an associated chance of
development (economic, regulatory, market and facility, corporate commitment or
political risks). The estimates referred to herein have not been risked for the
chance of development. There is no certainty that the contingent resources will
be developed and, if developed, there is no certainty as to the timing of such
development or that it will be commercially viable to produce any portion of the
contingent resources. All resource estimates presented are gross volumes for the
indicated reservoirs, without any adjustment for working interest or
encumbrance. "Prospective resources" are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects. Prospective
resources have both an associated chance of discovery (geological chance of
success) and a chance of development (economic, regulatory, market, facility,
corporate commitment or political risks). The chance of commerciality is the
product of these two risk components. 


The estimates referred to herein have not been risked for either the chance of
discovery or the chance of development. There is no certainty that any portion
of the prospective resources will be discovered. If a discovery is made, there
is no certainty that it will be developed or, if it is developed, there is no
certainty as to the timing of such development or that it will be commercially
viable to produce any portion of the prospective resources. The combined
prospective resource estimate referenced was independently audited as of May 31,
2012 (Tertiary Eocene), April 20, 2012 (Tertiary Oligocene) and January 14, 2011
(Cretaceous) and is the gross volume for the indicated reservoirs, without any
adjustment for the Company's working interest or encumbrances. The Company's
Statement of Oil and Gas Information contained in its Annual Information Form
dated March 26, 2012 ("AIF") and Material Change Reports dated April 23, 2012
and June 6, 2012 ("Material Change Reports") filed on SEDAR at www.sedar.com
contain additional detail with respect to the resource assessments and include
the significant risks and uncertainties associated with the estimates and the
recovery and development of the resources and, in respect of contingent
resources, the specific contingencies which prevent the classification of the
resources as reserves.. In addition, the combined mean estimate of prospective
resources referenced is an arithmetic sum of the mean estimates for the three
individual reservoirs on the Kurdamir structure and each such individual mean
estimate is the average from the probabilistic assessment that was completed for
the reservoir. Readers should refer to the AIF and the Material Change Reports
for a detailed breakdown of the high (P10), low (P90) and best (P50) estimates
for each of the individual reservoir assessments. 


WESTERNZAGROS RESOURCES WAS RECOGNIZED AS A TSX VENTURE 50(R) COMPANY IN 2012.
TSX VENTURE 50 IS A TRADE-MARK OF TSX INC. AND IS USED UNDER LICENSE.


FOR FURTHER INFORMATION PLEASE CONTACT: 
WesternZagros Resources Ltd.
Greg Stevenson
Chief Financial Officer
(403) 693-7007


WesternZagros Resources Ltd.
Tony Kraljic
VP Business Development
(403) 693-7011


WesternZagros Resources Ltd.
Lisa Harriman
Manager of Investor Relations
(403) 693-7017
investorrelations@westernzagros.com
www.westernzagros.com


Smithfield Group
Scott Fulton
Director
+44 (0) 20 7903 0641
sfulton@smithfieldgroup.com

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