Diaz Resources Ltd.

Diaz Resources Ltd. has retained Sayer Energy Advisors to sell its mainly 50% working interest, operated heavy oil property located in the Lloydminster area of Alberta.

Production net to Diaz from the property is approximately 50 barrels of oil (BOE) per day, along with minor volumes of solution gas sales, for a total of 52 BOE per day.

Recent net operating income from the property has averaged approximately $900,000 per year. This includes approximately $75,000 per year from third party water disposal revenue and approximately $60,000 per year in royalty revenue from a minor royalty interest in an offsetting property.

Significant upside exists on the property, which includes the drilling of at least 12 infill horizontal development wells, the recompletion of existing wells (mainly clean outs of horizontal wells) and the optimization of field operations (primarily through changing from PCP pumps to hydraulic reciprocating insert pumps).

McDaniel & Associates Consultants Ltd. assigned the property total proved plus probable reserves of about 219,000 barrels of oil and 11 million cubic feet (MMcf) of natural gas, for a total of 221,000 BOE effective Sept. 30, 2012 with an estimated net present value of $2.57 million using forecast pricing at a 5% discount and $2.13 million at a 10% discount using McDaniel’s Oct. 1, 2012 pricing. The third party disposal revenue of approximately $75,000 per year has not been factored into the McDaniel Report.

The deadline for submitting cash bids is noon on Thursday, Feb. 28, and closing is scheduled for sometime in March 2013. For further information please feel free to contact Alan Tambosso, President of Sayer Energy Advisors, at 403-266-6133.