PetroFrontier Corp. (TSX VENTURE:PFC) announced that through its two wholly-owned subsidiaries (PetroFrontier (Australia) Pty Ltd and Texalta (Australia) Pty Ltd), it has entered into a binding farm-in agreement (the "Farm-in Agreement") with Statoil Australia Oil and Gas AS ("Statoil"), a wholly-owned subsidiary of Statoil ASA of Norway whereby Statoil will farm into PetroFrontier's four exploration permits and two exploration permit applications in the Southern Georgina Basin, Northern Territory, Australia. The Farm-in Agreement is subject to satisfaction of certain conditions precedent, including the approval of the Foreign Investment Review Board of Australia (the "FIRB").

Pursuant to the terms of the Farm-in Agreement, Statoil will have the option to earn up to 65% of PetroFrontier's working interests in EP 103, EP 104, EP 127 and EP 128 ("EPs") and in EPA 213 and EPA 252 ("EPAs") in exchange for exploration program related payments and carried costs of up to US$210.0 million over three phases.

In addition, PetroFrontier has entered into a bought deal financing (see "Bought Deal Financing" below) with Macquarie Capital Markets Canada Ltd. to raise gross proceeds of C$15.0 million. The net proceeds of the offering combined with its current working capital are expected to fully satisfy PetroFrontier's Phase 1 contribution of US$25.0 million pursuant to the Farm-in Agreement. Statoil will also contribute US$25.0 million to Phase 1. Should Statoil elect to proceed with the Phase 2 joint exploration program, PetroFrontier will receive a cash payment of US$25.0 million (equal to its Phase 1 contribution) from Statoil and will be required to contribute US$20.0 million towards the Phase 2 exploration program.

"We are very excited to announce this farm-in agreement whereby up to US$230.0 million will be spent on our unconventional properties, of which Statoil will contribute up to US$210.0 million. Statoil is a highly regarded international exploration company, actively involved in major unconventional plays and brings exceptional financial resources and technical capabilities to our new relationship" said Paul Bennett, President and CEO of PetroFrontier. "We believe that partnering with a global leader like Statoil validates the potential of our assets and the exploration work we have completed to date."

"These exploration activities are in line with our objective to access shale plays at an early stage, at low cost and to develop them into potentially high value assets. We are looking forward to exploring them together with PetroFrontier, a small but highly competent company" said Atle Rettedal, Statoil's Senior Vice President for New Ventures.

The Farm-in Agreement represents the successful conclusion of the joint venture search process announced by PetroFrontier on January 16, 2012 for which Macquarie Capital Markets Canada Ltd. has acted as PetroFrontier's exclusive advisor.