There have been two factually incorrect articles released by Reuters today that may explain the volatility with our share price today. Please find the following Corporate Statement that is posted to our website.

WesternZagros Corrects Errors in Reuters Stories

We at WesternZagros are sufficiently concerned about two Reuters articles posted on April 12, 2011, that we are taking the unusual step of commenting directly. It is uncommon to see a reputable news agency such as Reuters issue a factually incorrect story, let alone two in one day.

The WesternZagros share price closed at C
.60 on Monday, not C
.06 as reported in a story headlined “WesternZagros raises going concern doubts on Iraq woes,” which we were pleased to see was later retracted from the Reuters site. In that earlier story, we were surprised to see the “going concern” note in our year-end results reported as news. We have had a going concern statement in our quarterly news releases consistently since the first quarter of 2010, in accordance with Canadian accounting requirements. Since WesternZagros does not yet have production revenue, we raise equity through financing to fund our exploration activities, similar to many other junior oil and gas companies. Our recent successful financing (see website for details) shows ongoing investor support.

In a second story, headlined “WesternZagros Q4 loss widens on higher expenses,” Reuters reports on WesternZagros as if it was a producing oil and gas company rather than a pre-production exploration company. The story reports on numbers that are not relevant to assessing the company’s progress, and it makes errors in those numbers. Specifically, the story reports that fourth quarter revenue dropped 60 per cent to $13 million. In fact, the correct revenue number is US$13,000, not $13 million. Our only revenue is interest on investments so it is an insignificant number to a company with a market capitalization of over $100 million.

In our opinion, the relevant news in our year-end release is the potential we have to discover over one billion barrels of hydrocarbons over the next 12-18 months. We will be testing the Jeribe Formation in the Sarqala-1 well in the very near future where previous analysis of drill cuttings showed good oil potential. We encourage investors to read the news release in full, available on our website.

M. Simon Hatfield

CEO, WesternZagros