Vermilion Energy Inc. is pleased to report interim operating and unaudited financial results for the three and nine month periods ended September 30, 2010.

Third Quarter Highlights

Recorded production of 31,298 boe/d, slightly lower than the 31,697 boe/d recorded in the second quarter of 2010.

Australia

Vermilion took advantage of drilling related production shutdowns in Australia to perform annual maintenance work on the platform. The combined effect reduced Australian production volumes by approximately 300 boe/d. Production in Australia is expected to increase significantly in the fourth quarter as the newly completed wells are brought on production. Current total production is approximately 34,000 boe/d with an anticipated exit rate approaching 35,000 boe/d. Generated fund flows from operations for the third quarter of 2010 of $94.5 million ($1.07 per share), slightly higher than the $90.4 million ($1.03 per share) in the prior quarter. Successfully completed the conversion from a trust structure to a corporate structure effective September 1, 2010, and maintained the $0.19 per share monthly payment to shareholders in the form of a dividend, resulting in higher after tax returns to taxable Canadian investors. Vermilion intends to continue to provide shareholders with stable dividends in addition to visible growth from the Company's rich portfolio of assets.

The company also completed drilling of three development wells in the Wandoo Field in Australia. Drilling operations commenced in August and concluded in late October. The initial productive capability of the new wells is very encouraging and they will contribute strongly to fourth quarter 2010 production volumes as they are brought on-stream at a restricted rate of between 1,500 and 2,500 boe/d, combined. Participated in public hearings regarding a revised application to the Irish planning board for approval to build an onshore pipeline connecting the offshore pipeline from the Corrib Field to the Bellanaboy processing plant. These hearings were completed on October 1, 2010 and Vermilion currently anticipates feedback on the application towards the end of 2010 or early 2011.

Cardium

Continued early stage development of the Cardium light oil play in north central Alberta. Average initial production rates (30 calendar days post recovery of frac fluids) for the first five wells was 421 boe/d - reaffirming the high quality of Vermilion's Cardium land position. Vermilion drilled an additional three operated Cardium wells (3 net) and participated in five partner operated wells (2.27 net) during the third quarter. These wells will be placed on production in the fourth quarter. Vermilion also began the design of a 15,000 boe/d processing facility to accommodate future Cardium production, which is scheduled for completion in August 2011. Net debt increased by approximately $55 million in the quarter to $238 million for the period ended September 30, 2010. Net debt as at September 30, 2010 represents approximately 0.63 times annualized third quarter fund flows from operations.

France Shale Oil

On the LIAS shale oil play in France, Vermilion has fracture stimulated two suspended wellbores in 2010. The wells are currently producing oil and the Company is gathering reservoir data. In addition to the 175,000 acres currently held on this play, Vermilion has applied for an additional 636,721 acres. The final awarding of the additional acreage is expected to occur by year end 2010.