James Long Announces Acquisition of Additional Common Shares of Desmarais Energy Corporation

CALGARY, ALBERTA--(Marketwire - Feb. 10, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Further to disclosure requirements of applicable securities laws, James Long both personally and through a company owned and controlled by him (being Dory Petroleums Ltd.), announces that he has acquired an aggregate of 1,216,161 common shares ("Common Shares") of Desmarais Energy Corporation (the "Issuer") in settlement of certain debts owed by the Issuer to Mr. Long (including Dory Petroleums Ltd.) pursuant to the Issuer's previously announced proposal under the Bankruptcy and Insolvency Act (Canada) ("BIA").

Additionally, the Issuer has issued to 1641493Alberta Ltd., a holding company owned and controlled by Mr. Long, an aggregate of 4,452,082 Common Shares in accordance with the terms of a consulting agreement ("Consulting Agreement") entered into by the Issuer, Mr. Long and 1641493 Alberta Ltd.

As a result of the acquisition of Common Shares referred to above, Mr. Long now beneficially owns or controls 7,133,243 Common Shares and options and warrants to purchase a further 430,000 Common Shares. The 7,133,243 Common Shares represent approximately 12.4% of the currently issued and outstanding Common Shares of the Issuer. If Mr. Long's options and warrants to purchase Common Shares are exercised in full, the additional 430,000 Common Shares issued, together with Mr. Long's direct, indirect or direction and control holdings of 7,133,243 Common Shares, would total 7,563,243 Common Shares, representing approximately 13.0% of the outstanding Common Shares of the Issuer (assuming no other Common Shares, other than the Common Shares issuable on exercise of the options and warrants held by Mr. Long had been issued from the date hereof).

Mr. Long acquired the Common Shares referred to herein for investment purposes. Mr. Long may in the future take such actions in respect of his holdings as he may deem appropriate in light of the circumstances then existing, including the purchase of additional Common Shares or other securities of the Issuer through open market purchases or privately negotiated transactions, or the sale of all or a portion of his holdings in the open market or in privately negotiated transactions to one or more purchasers.

A copy of Mr. Long's related early warning report has been filed with the applicable securities commissions.