LVL

Lynden Energy Corp. (TSX VENTURE:LVL) reports its third quarter 2012 results.
Highlights for the nine months ended March 31, 2012 (the "Current Period"),
compared to the nine months ended March 31, 2011 (the "Prior Period"), include:




--  Total production increased 348% to 136,392 boe (496 boe/d) 
--  Gross revenues increased 375% to $10,759,857



Production for the Current Period totaled 136,392 boe (496 boe/d). Production
for the three months ended March 31, 2012 totaled 51,799 boe (569 boe/d), an
increase of 20% over production in the three months ended December 31, 2011. All
of the production, and production growth, is attributable to the Wolfberry
Project. The production mix, on a percent per boe basis, from the Wolfberry
Project remains approximately 70% oil and 30% natural gas and associated
products.


Third Quarter 2012 Financial Results

This news release should be read in conjunction with the Company's consolidated
financial statements for the period ended March 31, 2012 and the notes thereto,
together with the MD&A for the corresponding period, which are available under
the Company's profile on SEDAR at www.sedar.com. All monetary references in this
news release are to U.S. dollars unless otherwise stated. 


Results of Operations

The Company reported net earnings of $4,421,281 and total comprehensive income
of $2,686,408 for the Current Period compared to a net loss of $3,853,603 and
total comprehensive income of $420,683 for the Prior Period. The most
significant component of the Current Period's net earnings were net revenue of
$8,302,479.


Petroleum and Natural Gas ("P&NG") Revenue

The Company reported gross P&NG revenues of $10,759,857 (Prior Period -
$2,833,118) for the Current Period, all from its Wolfberry Project wells. In
conjunction with the revenues, the Company reported royalties paid of $2,457,378
(Prior Period - $628,120) and paid production and operating expenses of
$1,143,857 (Prior Period - $275,855) for the Current Period. The Company also
incurred $2,614,681 (Prior Period - $724,501) of depletion and depreciation for
the Current Period. Average realized prices for the Current Period, were $93 per
barrel ("Bbl") of oil and $7.91 per thousand cubic feet ("Mcf") of natural gas,
compared to $84 per Bbl of oil and $7.39 per Mcf of natural gas, for the Prior
Period. The natural gas selling price is reflective of the thermal value of gas
and associated products sold.


The Company also reported gross P&NG revenues of $4,229,831 for the three months
ended March 31, 2012 compared to $3,393,035 for the three months ended December
31, 2011 ("Q2/2012"). In conjunction with the revenues, the Company reported
royalties paid of $971,196 (Q2/2012 - $771,803) and paid production and
operating expenses of $508,664 (Q2/2012 - $362,368) for the three months ended
March 31, 2012. Average realized prices for the three months ended March 31,
2012 were $99 per Bbl of oil and $7.00 per Mcf of natural gas, compared to $91
per Bbl of oil and $8.13 per Mcf of natural gas, for Q2/2012. 


Liquidity - Borrowing Base Increases 

The Company has a $50 million reducing revolving line of credit with Texas
Capital Bank. Effective March 31, 2012, the line of credit had a $16.0 million
borrowing base of which $10.5 million was outstanding. The Company anticipates
financing the majority of its Wolfberry Project capital expenditures through
operating revenues and upward borrowing base revisions on the line of credit. In
order for the Company to carry out the proposed development program on the
Wolfberry Project it is anticipated that the Company will need to raise
additional capital through the sale of equity or the sale of assets. 


In mid-May, the Company closed a non-brokered private placement, raising gross
proceeds of CDN$6.3 million.


The Company's working capital deficit has significantly increased over the past
several quarters, however it is the Company's view that the value of its P&NG
holdings is increasing at a rate significantly greater than the rate of increase
of the working capital deficit. It is the Company's objective to sell portions
of its proven acreage in order to manage its working capital position and to
redeploy funds to its unproven acreage, where the Company believes it can
achieve the best returns for shareholders.


Operations Highlights

The Wolfberry Project

The Company is currently carrying out a rapid oil and gas development program on
its Wolfberry Project, where the Company now has 32 gross (13.56 net) wells
tied-in and producing. During the three months ended March 31, 2012, a total of
9 gross (3.86 net) new wells were tied into production. At March 31, 2012, the
Company had 1 gross (0.31 net) well spud or drilled awaiting completion and/or
tie-in.


The Company is continuing with its aggressive Wolfberry Project development plan
which calls for the drilling of 31 gross (12.97 net) Wolfberry wells in calendar
2012, of which 6 gross (2.49 net) wells were drilled or spud at March 31, 2012.
The Company's current plans call for the spudding of an additional 25 gross
(10.48 net) wells from April 1 to December 31, 2012. The Company's funding
amount on the 10.48 net wells is equivalent to 11.98 wells. The gross cost of a
Wolfberry well is currently approximately $2.1 million. The Company's capital
budget is subject to change depending upon a number of factors, including
economic and industry conditions at the time of drilling, prevailing and
anticipated prices for oil and gas, the availability of sufficient capital
resources for drilling prospects, the Company's financial results and the
availability of lease extensions and renewals on reasonable terms. 


The Company anticipates significant increases in daily production volumes as
development of the Wolfberry Project continues. The Company is targeting a
December 31, 2012 net production exit rate, after royalties, of approximately
900 - 1,000 boe/day. This guidance is forward-looking information that is
subject to a number of risks and uncertainties, many of which are beyond the
Company's control. 


Mitchell Ranch Project

The Company's Mitchell Ranch project covers approximately 103,400 acres of P&NG
leases located primarily in Mitchell County, West Texas where the Company has a
50% working interest in approximately 68,400 acres, and a 1.25% overriding
royalty interest on approximately 35,000 acres subject to a term assignment with
a large, independent exploration and production company. 


The Company currently has one (0.5 net) producing well, the Spade 17#1, where
several rounds of completions have been carried out. During the Current Period,
the Company received $234,123 of net revenue from sales from the Spade 17#1
well. The Mitchell Ranch Project is in the exploration and evaluation stage and
as such, the net revenues have been credited to capitalized costs. The Spade
17#1 well has now produced approximately 9,500 barrels of oil from the most
recently completed Lower Wolfcamp interval alone, an average of approximately 26
barrels of oil per day in a year of production.


The Company had anticipated that two new wells would be spud, in the vicinity of
the Spade 17#1, in the summer of 2012 to further test zones of interest near the
Spade 17#1. As a result of significant new drilling activity in the general area
around the Mitchell Ranch Project, the timing of the new vertical wells has been
pushed out in order to best incorporate the results of other operators into the
development plan on the Mitchell Ranch Project. 


In addition, the Company is actively monitoring an ongoing multi-well vertical /
horizontal drill program being undertaken on the term assignment acreage.


About Lynden

Lynden Energy Corp. is in the business of acquiring, exploring and developing
petroleum and natural gas rights and properties. The Company has various working
interests in the Wolfberry Project and Mitchell Ranch Project, located in the
Permian Basin in West Texas, USA and in the Paradox Basin Project, located in
the State of Utah, USA.


ON BEHALF OF THE BOARD OF DIRECTORS

LYNDEN ENERGY CORP.

Colin Watt, President and CEO

NI 51-101 requires that we make the following disclosure: we use oil equivalents
(boe) to express quantities of natural gas and crude oil in a common unit. A
conversion ratio of 6 mcf of natural gas to 1 barrel of oil is used. Boe may be
misleading, particularly if used in isolation. The conversion ratio 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 DISCLAIMER: This news release contains
forward-looking statements. The reader is cautioned that assumptions used in the
preparation of such statements, although considered accurate at the time of
preparation, may prove incorrect, and the actual results may vary materially
from the statements made herein. Expectations of spudding 31 gross (12.97 net)
Wolfberry Project wells in 2012, and expected timelines relating to oil and gas
operations are subject to the customary risks of the oil and gas industry, and
are subject to the company having sufficient cash to fund the drilling and
completion of these wells. Expectations of obtaining upward borrowing base
revisions on the line of credit are subject to the customary risks of the oil
and gas industry, and are subject to drilling and completing successful wells,
and prevailing and anticipated prices for oil and gas. Achieving a December 31,
2012 net production exit rate, after royalties, of approximately 900 - 1,000
boe/day, is subject to the customary risks of the oil and gas industry and is
subject to the Company drilling and completing successful wells. For a more
detailed description of these risks, and others, see
www.lyndenenergy.com/riskfactors.html.

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