To finance the transaction and provide sufficient capital to pursue its low-risk development plans that are expected to triple production year-over-year in 2012, the Company closed a $4,210,750 private placement equity financing and obtained an increase in the borrowing base of its bank line of credit to $10,000,000.

“The Texas Reef Acquisition adds new production, enlarges Gale Force’s reserves base and adds to our growing portfolio of low-risk development opportunities”, said Michael McLellan, Chairman and CEO.  “We expect the Texas Reef Property to be highly accretive to shareholders, resulting in significant increases in reserves, production, cash-flows and net income, all on a per share basis, within a 6 to 12 month horizon.”

The Company has previously announced that it expects company-wide production to increase to 600 BOE by the end of September, 2012.  The Company also expects significant further increases in production and cash-generation before year end 2012.

Fully Funded for 2012

To finance its growth plans, the Company has arranged various funding sources, including the private placement announced today, the current and expected increases in the line of credit, and the GGC assets purchase, which is set to close in early May, 2012.  In conjunction with cash generated from operations, the Company expects to deploy over $15 million of new capital on growing its business during 2012, beginning with the purchase of the Texas Reef Properties.

The Texas Reef Properties

The Texas Reef Properties consist of 7,000 gross acres/2,100 net acres under lease in East Texas, with three wells currently producing, in the aggregate, 35 barrels of light crude oil and 200 MCFs of natural gas per day.  The Texas Reef Properties have complex geology with proved reserves from multiple zones, and numerous potential proved undeveloped locations for low-risk development drilling.

Today the Company signed agreements purchasing approximately 75% working interests in each the three existing wells, approximately 80% working interest in the remainder of the acreage and project.

The aggregate purchase price for the Texas Reef Properties is US$4,630,988, comprised of US$3,880,988 cash and CA$750,000 in units of the Company (the “Texas Reef Units”), payable to several arms-length sellers.  Each Texas Reef Unit issued shall be issued at a price of $0.25 per Unit, and is comprised of one common share and one warrant with an exercise price of 30 cents, expiring April 10, 2014.  The common shares and warrants are subject to resale restrictions that expire August 11, 2012.   In addition to the purchase price, the Company is responsible to “carry” one of the sellers that has retained a 10% working interest in the properties for $250,000 of capital spending.

The initial development plans for the Texas Reef properties are to recomplete the existing wells, which is expected to result in sizeable production increases.  Secondly, the Company is preparing to drill two low-risk, infill, development wells on the properties, beginning before year end 2012.  This drilling program is expected to occur in conjunction with the drilling of two other low-risk development wells on the Company’s other properties, also expected to begin before year end.

Reserves Estimates

Since last publicly disclosing reserves estimates for the Company in compliance with N151-101, the Company has purchased the Texas Reef Properties and the Marcellus Properties.  Therefore, the Company will be publishing updated company-wide reserves estimates, which will include reserves from these new properties.  The updated reserves estimates are expected to be published by June, 2012.

Marcellus Properties Operations Update

The Company has received early results from some of the new wells on production on the Marcellus Properties purchased on January 31, 2012, which are located in Wetzel and Marshall Counties in West Virginia.  The well production results are in line with publicly announced results by other operators in the area who are providing guidance to well economics in excess of 45% IRRs (internal rate of returns).  Facilities and infrastructure construction to handle the large volumes of natural gas, liquids and condensate, as well as completion and new drilling operations are continuing, as expected throughout the Marcellus Properties.  The Company will provide new information as it is available.

Bank Line of Credit Increase

The Company today obtained approval for an increase to $10 million in the borrowing base of its line of credit with Green Bank of Houston, Texas.  The line of credit has an interest rate of 5.0% per annum, and is currently drawn to $5.85 million.

Private Placement Equity Financing

The Company announced that today that it received gross proceeds of CA$4,210,750 in a private placement financing through the issuance of  16,843,000 units of the Company (the “Units”), each Unit being comprised of one common share and one half common share purchase warrant (each whole common share purchase warrant, a “Warrant”).  Each Warrant is subject to a four-month hold period, has an exercise price of $0.30 and expires April 10, 2014.

In connection with the private placement, the Company paid an aggregate of $290,548 cash finder’s fees, issued 161,800 common shares at a price of $0.25 per share with an aggregate value of $38,450, and issued 542,190 non-transferable broker’s warrants (“Broker’s Warrants”) to members of the selling group and various other finders.  Each Broker’s Warrant entitles its holder to acquire one Unit at an exercise price of $0.25 at any time on or before April 10, 2014.

All of the securities issued by the Company in connection with this private placement are subject to resale restrictions which expire on August 11, 2012.

The selling group included All Group, BMO Nesbitt Burns, Canaccord, Northern Securities, Raymond James, Union Securities, and various other finders, all of which are at arm’s length from the Company.

After paying the fees associated with the financing, the Company is repaying the bridge loan of $500,000 it had obtained on January 31, 2012 to finance the Marcellus Properties acquisition.  The Company is also repaying the $450,000 vendor’s note from the purchase of the Thunder Properties on October 19, 2011.  The remaining funds are to be used, in conjunction with funds available under the Company’s line of credit, to purchase the Texas Reef Properties and for development of the Company’s properties.

The GGC Assets Purchase

Great Gulfcan (“GGC”) has received proxies from over 90% of GGC’s shareholders voting in favour of the transaction to sell the “GGC Assets” to the Company, and therefore the Company expects the GGC Assets purchase to close on or about May 11, 2012.  The GGC assets being acquired by Gale Force include approximately CA$3,200,000 cash, an option on a Texas oil and gas lease in South Texas with one well with no current production, and an exclusive right to GGC’s tax losses for a limited period of time.  The cash and assets being acquired are expected to fuel and provide additional opportunities for the Company’s continue its rapid growth.

IFRS Transition

Further to the news published by the Company on March 8, 2012, as a result of issues identified by securities regulators in connection with the Company’s transition from Canadian GAAP to IFRS reporting standards, the Company announces that it will be restating its financial reports for the periods ended September 30, 2011 and December 31, 2011.  The focus of the restatement will be on modified disclosure in the notes to the financial statements and the management’s discussion and analysis, as well as on the effects of changes to accounting policies to bring them into compliance with IFRS as they impact various non-cash balance sheet and income statement accounts. The restatement will be completed when the Company receives regulatory approval of such revised disclosure, and the Company does not expect any significantly material changes from the reports filed on March 8, 2012.

For more information, please contact: Michael McLellan, CFA, Chairman & CEO, +1.514.221.2030

ABOUT GALE FORCE PETROLEUM INC. ? www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting underdeveloped and undervalued oil and gas reserves in mature basins, bringing operational expertise and capital to lower-risk, development-type projects. The Company currently owns producing oil and gas properties in Texas, Oklahoma, Tennessee and West Virginia.

Cautionary statement concerning use of BOEs:
The BOE (Barrel of Oil Equivalent) unit of measure may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward looking statements:
Statements included herein, including those that express management’s expectations or estimates of our future performance, constitute “forward-looking statements” within the meaning of applicable securities laws.  Forward-looking statements are  based on assumptions and estimates that are subject to various risks and uncertainties, including the risks disclosed under the heading “Risks and Uncertainties” in the Company’s periodic filings on SEDAR, for example, in its Management Discussion and Analysis for the year ended June 30, 2010. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements, except as required under applicable law.

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

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Financial Results

The following are some of the key highlights from the financial reports for the six and three month periods ended December 31, 2012:

•    Production grew rapidly during the quarter again. As previously announced on January 10th, 2012, the Company exited 2011 with gross production of 275 BOE per day (90% oil) with current production over 300 BOE per day (90% oil).
•    At the property level, the Company generated $989,972 of cash for the 6 months or $644,397 for the three months.
•    After deducting general, administrative and financing expenses from property level cash generated, the Company generated $397,616 of cash for the 6 months or $336,166 for the three months (i.e. there is no “burn” as the company is cash-flow positive from total operations).
•    The Company earned net profits of $617,707 during the six months and lost $350,416 during the 3 months.  The variation between cash generation and net income is mainly due to foreign exchange fluctuations, which have no impact on the underlying cash-flows of the business.
•    To continue development operations, the Company had $671,231 in cash available at year end (including line of credit, but not including funds raised on January 31, 2012).

“The financial results show Gale Force has been consistent in the execution of its plan to grow rapidly through accretive acquisitions and low-risk development”, said Michael McLellan, Chairman & CEO. “We are on track for even higher reserves growth and increases in production and cash-flow over the coming periods”.

The Company was delayed in publishing the financial reports due to issues regarding the transition from Canadian GAAP to IFRS reporting standards, which were brought to the Company’s attention only shortly prior to the filing deadline.  As a result of the lateness in publishing the financial reports, a cease trade order (CTO) was issued and trading in the Company’s shares was suspended.  The Company has corrected the deficiencies and filed the applications for removal of the CTO and reinstatement to trading.

The Texas Reef Properties

The Company announced today that it has signed agreements to acquire greater interests in the shallow oil zones on the undrilled acreage that are the primary target for development by the Company, up to an 87% working interest from the 80% working interest previously disclosed.  The Texas Reef Properties acquisition was previously announced on February 8, 2012. The Texas Reef Properties consist of 7,500 gross acres/2,400 net acres under lease in East Texas, with three wells currently producing 35 barrels of light crude oil and 200 MCFs of high-BTU gas per day.  The Texas Reef Properties have complex geology with proved reserves from multiple zones, and numerous potential proved undeveloped locations for low-risk development drilling.

The GGC Assets Purchase

The Company has received a second non-refundable deposit of $100,000 from Great Gulfcan Energy Inc. under the agreement to purchase the “GGC Assets”, as previously announced on February 8, 2012.  The GGC Assets consist of approximately CA$3.2 million in cash, an option on a Texas oil and gas lease in South Texas with one well with no current production and an exclusive right to GGC’s tax losses for a limited period of time.

Production Swaps

The Company has also lock-in highly-profitable sales prices on part of its forecast production by entering into production swaps, pursuant to requirements of its $15 million bank facility, as described in the following table:

Period                                                                       Quantity                                 verage  Sales Price
July 2012 through December 2012             3,000 bbls per month                          $103.72
January 2013 through December 2013     3,000 bbls per month                            $99.97

For more information, please contact: Michael McLellan, CFA, Chairman & CEO, +1.514.221.2030

ABOUT GALE FORCE PETROLEUM INC. ? www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting underdeveloped and undervalued oil and gas reserves in mature basins, bringing operational expertise and capital to lower-risk, development-type projects. The Company currently owns producing oil and gas properties in Texas, Oklahoma, Tennessee and West Virginia.

Cautionary statement concerning use of BOEs:
The BOE (Barrel of Oil Equivalent) unit of measure may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward looking statements:
Statements included herein, including those that express management’s expectations or estimates of our future performance, constitute “forward-looking statements” within the meaning of applicable securities laws.  Forward-looking statements are  based on assumptions and estimates that are subject to various risks and uncertainties, including the risks disclosed under the heading “Risks and Uncertainties” in the Company’s periodic filings on SEDAR, for example, in its Management Discussion and Analysis for the year ended June 30, 2010. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements, except as required under applicable law.

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

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“The Texas Reef Properties will add to the Company’s growing inventory of development prospects, providing a clear pathway for continued growth in production and cash generation”, said Michael McLellan, Chairman and CEO. “We believe that the Texas Reef Properties will help increase total oil and gas production by September, 2012 to over 600 BOE per day net to the Company”

The Company existed 2011 producing 275 BOE per day, is currently producing 300 BOE per day (90% oil) and should it achieve production of 600 BOE per day in September, 2012, it will have more than tripled production since September, 2011. The Company expects further increases before year-end 2012, and all increases in production would be largely from increases in production of light crude oil and liquids-rich natural gas.

The Texas Reef Properties

The Texas Reef Properties consist of 7,500 gross acres/2,400 net acres under lease in East Texas, with three wells currently producing 35 barrels of light crude oil and 200 MCFs of high-BTU gas per day.  The Texas Reef Properties have complex geology with proved reserves from multiple zones, and numerous potential proved undeveloped locations for low-risk development drilling.  The agreements entered into by the Company give it the rights to purchase approximately 75% working interests in each the three existing wells on the properties and an 80% working interest in the remainder of the acreage.

The purchase price for the Texas Reef Properties is US$4.25 million, comprised of US$3.5 million cash and CA$750,000 in units of the Company (the “Units”), payable to several arms-length sellers.  Each Unit issued shall be comprised of one common share with an issuance price of 25 cents and one warrant with an exercise price of 28 cents and an expiry 2 years from closing, exercisable on the condition that the common shares issued by such exercise, in conjunction with any common shares owned by the holder, not result in the holder owning greater than 9.99% of the common shares of the Corporation issued and outstanding.  The common shares and warrants shall be subject to resale restrictions that expire four months plus one day following their issuance.   To hold the property until March 23, 2012, the Company has paid a US$150,000 non-refundable deposit, which will count towards the cash component of the purchase price.  There are no finder’s fee payable in conjunction with the transaction.

To finance the purchase of the Texas Reef Properties, the Company intends to primarily use funds drawn from its $15 million bank facility, which bears interest of 5%.

The purchase of the Texas Reef Properties is subject to due diligence and financing, and the acquisition and securities issuances are subject to the approval of the TSX Venture Exchange.

The GGC Assets Purchase

The GGC Assets consist of approximately CA$3.2 million in cash, an option on a Texas oil and gas lease in South Texas with one well with no current production, and an exclusive right to purchase GGC’s tax losses for a limited period post-transaction.  GGC is at arm’s length from the Company.

The purchase price for the GGC Assets is CA$4.2 million, to be paid through the issuance of units of the Company (the “GGC Units”).  Each GGC Unit will consist of one preferred share with an issuance price of 25 cents per share (the “Preferred Shares”) and one-half warrant exercisable at 30 cents per share until April 1, 2014 (the “GGC Warrants”).  Therefore, 16.8 million Preferred Shares and 8.4 million GGC Warrants would be issued in consideration for the purchase, distributed to the shareholders of GGC.  The Preferred Shares earn no dividend, but are convertible 1:1 into common shares of the Company by the holder at any time or by the Company if the 20-day average trading price of the Company’s common shares is over 30 cents provided there is average trading volume over 200,000 shares per day, using the combined trading volumes on the TSX Venture Exchange and the OTCQX market.  The Preferred Shares and GGC Warrants are also subject to a conversion restriction such that the common shares received by such conversion, in conjunction with any common shares already owned by the holder, would not result in the holder owning great than 9.99% of the common shares of the Company issued and outstanding.  The Preferred Shares (and their underlying common shares) shall also be subject to resale restrictions, such that 50% of them shall not be transferable for a period of 12 months following the date of closing and the remaining 50% shall not be transferable for a period of 18 months following the date of closing.  The Company shall apply to list the GGC Warrants for trading on the TSX Venture Exchange. There are no finder’s fees payable in conjunction with the transaction.

As part of the transaction, at closing, G. Scott Paterson, GGC’s Chairman, would be appointed to Gale Force’s Board of Directors as the Company’s Co-Chairman.  Mr. Paterson is a Director of Lions Gate Entertainment Corp. (NYSE: LGF), Vice-Chairman of Neulion Inc. (TSX: NLN) and Chairman of Apogee Silver Ltd. (TSXV: APE) as well as Chairman of Great GulfCan Energy Inc.  Mr. Paterson spent 16 years in the investment industry last serving as Chairman & CEO of Yorkton Securities from October 1998 to December 2001 during which time Yorkton raised over $9 billion as lead and/or co-managing underwriter. Mr. Paterson has served the securities industry as Chairman of the Canadian Venture Exchange, Vice-Chairman of the Toronto Stock Exchange, Governor of the Investment Dealers Association of Canada and as a Director of each of the Canadian Investor Protection Fund, Canadian Securities Institute and the Canadian Securities Advisory Council.  Mr. Paterson is also involved in many charitable and community organisations.

Completion of the GGC Assets purchase is subject to certain conditions, including the receipt by Gale Force of all required regulatory and TSX Venture Exchange approvals, and the receipt by GGC of all required approvals, including the approval of the GGC Assets sale by GGC’s shareholders pursuant to a “Plan of Arrangement” under the Canada Business Corporation Act.  GGC’s shareholders are expected to vote on the Plan of Arrangement at a shareholder’s meeting scheduled for April 11, 2012.  The Plan of Arrangement is also subject to the approval of the Superior Court of Ontario.

As part of the proposed transaction, GGC has paid to Gale Force a $50,000 non-refundable deposit, which affords GGC until March 1, 2012, on or before which time GGC can pay an additional $100,000 non-refundable deposit to extend the date by which GGC must obtain the necessary approvals to close the transaction to May 15, 2011.  The amount of such deposits shall be included in calculating the cash portion of the Assets to be acquired by Gale Force of approximately $3.2 million in cash.

“The GGC Asset purchase will provide Gale Force with additional equity and assets that will assist us in accelerating our growth, and we look forward to Mr. Paterson joining the Company’s Board”, said Mr. McLellan.  “Also, GGC’s shareholder base is primarily sophisticated, institutional and veteran industry investors, which the Company hopes to count amongst its long-term shareholders that will support the Company’s growth.”

Production Swaps

The Company also announced today that pursuant to requirements of its $15 million bank facility, it has entered into production swap agreements locking in a sales price of $99.43 for 2,000 barrels of crude oil per month for each month in 2013.  The counterpart of the swap agreements is Cargill, the multi-national producer and marketer of food, industrial products and financial services. The Company also intends to enter into additional production swap agreements for 60% of its proved developed producing production in the coming weeks (which is less than 30% of its forecast production, due to rapid production growth).

Share, Option and Warrants Issuances

As previously announced on January 31, 2012, the Corporation has issued 3,160,000 common shares to subscribers as part of a private placement and shares-for-debt transactions, issued 2,575,000 warrants with an exercise price of 20 cents and 500,000 warrants with an exercise price of 28 cents, all warrants expiring February 11, 2014, with resale restrictions on all shares and warrants expiring June 11, 2012.

The Company also announced that 1,050,000 stock options were forfeited and 1,750,000 stock options were issued to directors and consultants under the terms of the Rolling Stock Option Plan approved by the shareholders on January 12, 2012, for a net 700,000 increase in the number of stock options issued, with each new option issued having an exercise price of 28 cents, and all new options vesting in six equal quarterly instalments.  The options issuance is subject to the approval of the TSX Venture Exchange.

Mr. McLellan said, “Gale Force has bought 8 properties in 1.5 years, has now lined up the next 2 acquisitions, and is working on additional accretive acquisitions that we believe will add further value for our shareholders.  We have a lot more work to do”.

For more information, please contact: Michael McLellan, CFA, Chairman & CEO, +1.514.221.2030

ABOUT GALE FORCE PETROLEUM INC. ? www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting underdeveloped and undervalued oil and gas reserves in mature basins, bringing operational expertise and capital to lower-risk, development-type projects. The Company currently owns producing oil and gas properties in Texas, Oklahoma, Tennessee and West Virginia.

Cautionary statement concerning use of BOEs:
Please note that the Company has used the term “BOE” herein, which may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward looking statements:
Statements included herein, including those that express management’s expectations or estimates of our future performance, constitute “forward-looking statements” within the meaning of applicable securities laws.  Forward-looking statements are  based on assumptions and estimates that are subject to various risks and uncertainties, including the risks disclosed under the heading “Risks and Uncertainties” in the Company’s periodic filings on SEDAR, for example, in its Management Discussion and Analysis for the year ended June 30, 2010. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements, except as required under applicable law.

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

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“This is a tremendous opportunity with excellent financial terms for Gale Force to participate in one of the most successful plays in North American oil and gas in recent times”, said Michael McLellan, Chairman and CEO.  “The liquids-rich natural gas gives the property very favourable economics at current oil and gas prices”.

The Marcellus Properties consist of approximately 10,000 acres, operated by a multi-billion dollar public oil and gas company with favourable service contracts.  The properties are in the “wet gas” window of the Marcellus shale gas field, with prolific natural gas liquids and condensate in addition to abundant natural gas.  To date over 15 wells have been wells have been drilled on the Marcellus Properties and between 50 and 100 additional new wells are expected to be drilled and completed on similar spacing to the existing 15 wells within the next 3 years.

Of the wells already drilled on the Marcellus Properties several have been completed, flow-testing at rates ranging from 3 to 5 million cubic feet (MMcf) of gas per day.  The wells also had an initial condensate production rate ranging from 70 barrels to in excess of 95 barrels per each MMcf of gas produced, and initial natural gas liquids (NGL) volumes from the wet gas stream estimated to be over 35 barrels per MMcf of gas produced, which should significantly enhance the economics of the field.

The Company has purchased working interests (WIs) in various existing wells and the rights to participate in any of the up to 100 additional wells expected to be drilled on the Marcellus Properties.  As per the terms of the investment, the Company will earn payout of its initial investment plus an internal rate of return (IRR) of 35%, prior to its WIs being reduced by approximately 40%.  Following this initial purchase, the Company owns WIs including a 1.275% WI in numerous existing drilled but not completed wells, a 0.255% WI in several existing drilled and completed wells, and the Company has the rights to participate in the drilling of up to 100 wells throughout the acreage for a minimum of 1.125% WI in each well until it earns payout plus an IRR of 25%, after which its interests in each well decreases by 50%.

The initial investment made by the Company for the interests in the existing wells on the Marcellus Properties will be approximately US$1,500,000 for its share of drilling, completions and tie-in costs over the next 3 months. Additionally, the Company has the option to fund its share of any new wells drilled over the next 2 to 3 years on the property, expected to require between $2.5 million and $10 million, depending on the drilling programs determined by the operator of the project.  A finder’s fee of US$90,000 is payable to IROMAD, a specialized oil and gas consultancy, for its role in sourcing and performing due diligence on the acquisition.

To finance the purchase of the Marcellus Properties the Company borrowed CA$500,000 (the “Short-term Loan”) from Palos Merchant Bank L.P. and will conclude a CA$500,000 equity private placement (the “Private Placement”) with a strategic US oil and gas investor, Young Capital Partners, for a total CA$1,000,000 in new capital raised.

“Even though Gale Force is generating significant cash from operations and has approximately $600,000 currently available on its line of credit, these small financings not only provide liquidity to close the Marcellus Properties…”, said Mr. McLellan, “These financings also assure that the Company continues the development of its existing properties, where it is expected that daily production will grow to between 350 and 400 BOE per day by June, 2012, not including the new production from this acquisition”.

The $500,000 Short-term Loan from Palos Merchant Bank L.P. shall earn interest of 1.25% per month and has a term of between 2 and 6 months.  The Short-term Loan is secured by a first-rank security interest on the 50% of the Company’s Thunder Property and the Company’s interests in the Marcellus Properties.

The $500,000 Private Placement with Young Capital Partners (see below for a description of Young Capital Partners) is in exchange of 2,500,000 units (the “Units”).  Each Unit shall be issued at a price of $0.20 per Unit, and will be comprised of one common share Company and one warrant with a term of 2 years with an exercise price of $0.20. The common shares and warrants are subject to resale restrictions that will expire on April 2, 2012.

The Company also signed a shares-for-debt agreement to settle fees owing to IROMAD to settle accrued consulting fees of $15,000, through the issuance of 75,000 Units. These shares and warrants shall be issued today, along with 585,000 shares and 500,000 warrants issued under previously signed shares-for debt agreements, as previously announced on January 10, 2012.

The issuance of the common shares and the warrants are subject to TSX Venture Exchange approval.

For more information, please contact: Michael McLellan, CFA, Chairman & CEO, +1.514.221.2030

ABOUT GALE FORCE PETROLEUM INC. ? www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting undervalued oil and gas reserves in mature basins, bringing operational expertise and capital to lower-risk, development-type projects. The Company currently owns producing oil and gas properties in Texas, Oklahoma and Tennessee.

ABOUT YOUNG CAPITALPARTNERS, LP – www.YoungCM.com
Young Capital Partners, LP is a limited partnership advised by Young Capital Management, LLC, a Registered Investment Advisor with the state of California that is based in Los Angeles. Joshua Young is the managing member of Young Capital Partners. He was previously an analyst at Karlin Asset Management, a multi-billion dollar single family office based in Los Angeles. He was recently featured in Oil & Gas Investor Magazine and in The Energy Report.

ABOUT PALOS MERCHANT BANK L.P. – www.PalosManagement.com/Palos-Merchant-Bank.php
Palos Merchant Bank L.P. (“Palos”) engages in merchant banking activities and provides a variety of corporate finance services including: capital-raising, credit syndication, buyout financing, advice on mergers and acquisitions, restructuring and due diligence.  There are two major differences between Palos and traditional investment banks: (1) Palos invests its own own money alongside other investors, typically as the lead investor, and (2) Palos does not engage in underwriting.  Palos Merchant Bank also becomes involved in the governance of the companies in which it invests, usually by taking an active role at the Board of Directors level. The managers of the Palos have extensive experience in corporate finance, private equity, venture capital and seed financing.

Forward looking statements:
Statements included herein, including those that express management’s expectations or estimates of our future performance, constitute “forward-looking statements” within the meaning of applicable securities laws.  Forward-looking statements are  based on assumptions and estimates that are subject to various risks and uncertainties, including the risks disclosed under the heading “Risks and Uncertainties” in the Company’s periodic filings on SEDAR, for example, in its Management Discussion and Analysis for the year ended June 30, 2010. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements, except as required under applicable law.

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

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“The Company has made steady gains in its daily production and cash-flow generation”, said Michael McLellan, Chairman and CEO.  “We intend to build on this success and continue the rapid growth of operations”.

The Company has also signed shares-for-services agreements to settle a total of $124,000 owing to Ruben Alba and Daniel Smith, P.E., for technical oil and gas services rendered during 2011.   Mr. Alba will be issued 80,000 common shares of the Company at a price of 21.4 cents per share, to settle amounts owing of $17,000, and Mr. Smith will be issued 500,000 common shares at a price of 21.25 cents per share, plus 500,000 warrants with an exercise price of 33 cents and a term of 24 months, to settle amounts owing of $107,000.

“It is encouraging that some of the Company’s technical personnel have elected to take payment in equity”, said Mr. McLellan. “We are grateful for their services rendered and the results they have helped us achieve”.

The common shares and warrants are subject to a 4-month hold period, and the issuance is subject to TSX Venture Exchange approval.

For more information, please contact: Michael McLellan, CFA, Chairman & CEO, +1.514.221.2030

ABOUT GALE FORCE PETROLEUM INC. ? www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting undervalued oil and gas reserves in mature basins, bringing operational expertise and capital to lower-risk, development-type projects. The Company currently owns producing oil and gas properties in Texas, Oklahoma and Tennessee.

Cautionary statement concerning use of BOEs:
Please note that the Company has used the term “BOE” herein, which may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward looking statements:
Statements included herein, including those that express management’s expectations or estimates of our future performance, constitute “forward-looking statements” within the meaning of applicable securities laws.  Forward-looking statements are  based on assumptions and estimates that are subject to various risks and uncertainties, including the risks disclosed under the heading “Risks and Uncertainties” in the Company’s periodic filings on SEDAR, for example, in its Management Discussion and Analysis for the year ended June 30, 2010. Such information contained herein represents management’s best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements, except as required under applicable law.

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

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“With GFP now trading on the OTC market’s prestigious OTCQX Internal tier, GFP has opened the door to many more potential investors in the United States,” said Michael McLellan, Chairman and CEO. “The OTCQX provides the highest level of transparency and visibility possible for efficient trading of for US investors in the OTC marketplace.”

Berns & Berns, LLP will serve as the Company’s Principal American Liaison on the OTCQX, responsible for providing guidance on OTCQX requirements.

For more information, please contact: Michael McLellan, CFA, Chairman & CEO, +1.514.221.2030

ABOUT GALE FORCE PETROLEUM INC. ? www.GaleForcePetroleum.com
Gale Force Petroleum acquires and exploits undervalued and underdeveloped oil and gas reserves in mature basins, bringing operational expertise and capital to lower-risk, development-type projects. The Company currently owns producing oil and gas properties in Texas, Oklahoma and Tennessee.

ABOUT OTC MARKETS GROUP INC. – www.OTCMarkets.com
OTC Markets Group Inc. (OTCQX: OTCM) operates the world’s largest electronic marketplace for broker-dealers to trade unlisted stocks.  Our OTC Link™ platform supports an open network of competing broker-dealers that provide investors with the best prices in over 10,000 OTC securities.  We categorize the wide spectrum of OTC-traded companies into three tiers – OTCQX (the intelligent marketplace), OTCQB® (the venture marketplace), and OTC Pink™ (the open marketplace) – so investors can identify the level and quality of information companies provide.  To learn more about how OTC Markets Group makes the unlisted markets more transparent, informed, and efficient, visit www.otcmarkets.com.

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

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