CONCORD, ONTARIO--(Marketwired - May 13, 2013) - Epsilon Energy Ltd. ("Epsilon" or the "Company") (TSX:EPS) announced the Company did not receive a proposal as of the May 10^th, 2013 deadline under its Strategic Alternative Process. The Strategic Alternative Process was undertaken by the Board, as recommended by Epsilon's largest shareholder at the time the process was initiated.

"We entered into the review of strategic alternatives from a position of strength, in terms of both robust Marcellus upstream and midstream operations and cash flow," commented Zoran Arandjelovic, Chairman and Chief Executive Officer of Epsilon. "The process over the past three months, although not resulting in an acceptable offer for the whole of the Company, did highlight the quality of our Marcellus asset base and continued shareholder value growth opportunities. Although the Board believes the Company and its shareholders are best served by our continued focus on the development of upstream and midstream assets, it remains open minded to all alternatives that would enhance shareholders value". The Company and its Board of Directors have authorized its financial advisor, Evercore Partners, to continue dealing with interested parties in the event that their efforts result in a proposal that the Board deems in the best interest of the Company and its shareholders.

Epsilon is a North American onshore exploration and production company with a current focus in the Marcellus Shale in Pennsylvania, Bakken Shale in Saskatchewan and Basal Belly River in Alberta.

Forward-Looking Statements

Certain statements contained in this news release constitute forward looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", 'may", "will", "project", "should", 'believe", and similar expressions are intended to identify forward -looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements are based on reasonable assumption but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.

Special note for news distribution in the United States

The securities described in the news release have not been registered under the United Stated Securities Act of 1933, as amended, (the "1933 Act") or state securities laws. Any holder of these securities, by purchasing such securities, agrees for the benefit of Eps ilon Energy Ltd. (the "Corporation") that such securities may not be offered, sold, or otherwise transferred only (A) to the Corporation or its affiliates; (B) outside the United States in accordance with applicable state laws and either (1) Rule 144(as) under the 1933 Act or (2) Rule 144 under the 1933 Act, if applicable.