Overview

Primary Petroleum (TSXV:PIE ^[1], OTCQX:PETEF) is a junior oil and gas company engaged in exploration and development activities in NW Montana and currently holds substantial land positions in both an unconventional and conventional resource oil play. The Company's mandate is to continue to acquire strategic opportunities in the Sedimentary Basins of the Western United States and Canada and seek out qualified industry partners to assist in the exploitation and development.

Activity, Positioning and Growth

Primary Petroleum has grown its land position from 110,000 net acres in 2008 to over 305,000 net acres (360,000 gross) and outlines data points below on the activity, positioning and growth of the Southern Alberta Bakken Basin in NW Montana

•  2008 - Primary Petroleum's acquires 110,000 net acres in its Pondera-Teton prospect, surveys 26 sq.mi. of proprietary 3D Seismic and drills four Sunburst & Madison test wells
•  2009 - December - Newfield Exploration (“NFX”) acquires 156,000 acres from Blackfeet Indian Reservation for U.S.$12millonm or $85/acre
•  2010 - February - Rosetta Resources (“ROSE”) hold 100,000 net acres and updates 2009 drilling program and identifies their resources calculation of 13 million to 15 million original oil in place per section [OOIP/section]
• 2011 - February - Primary completes $17.25mm equity raise and outlines a CAPEX of $13.5million, which includes 3D Seismic, a multi-well vertical and horizontal drilling program
• 2011 - ROSE increased its lease holdings in the area to 300,000 acres; NFX increases its lease holdings to 340,000 acres; FX Energy adds a 70,000 acre joint venture. All three companies have outlined an ongoing multi-well drilling and completion program
•  2011 - October 19^th (see news release)- Primary completes Sale & JV Farmout with U.S. Major for U.S. $48.5MM
• 2011 - NFX reports initial production rate (“IP”) of 225 boe/d; ROSE reports stabilized production rates of 104 boe/d and 154 boe/d (“boe/d” - barrels of oil equivalent per day)
• 2011 - November - Primary commence 12 well JV drilling program
• 2012 - March - ROSE reports stabilized rate on 3^rd HZ well at 403 boe/d
• 2012 - April - JV drilling program current status
• Increased lease exposure in the area to 361,000 gross and 304,000 net acres
• Completed approximately 95 sq. mi. 3D Seismic
• Drilled, logged and cored six vertical Bakken System strat test wells
• Commenced secondary vertical drilling program of up to four wells and production test for oil bearing hydro-carbons in the Nisku, Sawtooth/ Madison and Sunburst formations

Main Property

Pondera Teton

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Alberta Basin Bakken Properties - NW Montana , USA

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Current Southern Alberta Bakken Basin Facts

•   Over $240 mm on Land Sales in Southern Alberta from April 2010
•   Average price - $2000/ha ($812/ac.)  Maximum price - over $8200/ha ($3300/ac.)
•   To-date over 75 wells are in the process of been tested, completed and/or drilled.
•   Currently 45 Industry participants in the region whereby 34 CDN and 11 U.S.
•   Fairway estimated at 175 mi, north-south and 30-40 mi. east-west
•   Implied potential resource in place - in the multiples of billions of barrels
•   Approx. $500 mm spent to date on land, JV's, exploration and drilling

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Pondera-Teton Project [Primary Leased Land in yellow]

Primary and its JV Partner (see News Release Oct. 19, 2011 ^[6]) currently holds over 361,000 gross, 305,00 net acres (500 sections) in its Pondera-Teton prospect located in the Southern Alberta Bakken Basin Fairway in NW Montana. These lands adjoin the Blackfeet Indian reservation to the south and are prospective for oil in the Sunburst; Sun River/Madison; Bakken System and Nisku Formations.

To date Primary has completed 95 sq. miles of 3D seismic; drilled cored and logged six vertical stratigraphic test wells to collect important data through the Bakken system formations in preparation of its horizontal drilling program to commence in July 2012. Primary has commenced a vertical drilling program of up to four wells to production test the conventional Sunburst, Sun River/Madison and Nisku formations.

Management

Michele (Mike) N. Marrandino - President, Director, Founder

Mike holds a diploma from the British Columbia Institute of Technology of Mechanical and Industrial Engineering. He has provided independent consulting in sales, marketing, corporate communications, fund raising and management for private and public companies in the mining, hi-tech and oil and gas sectors since 1986. He has held several senior management and directorship positions in both private and public companies for the past 20 years. Mike has initiated several ventures, maturing them into successful public companies. His motivation and work ethic have proven to be one of his strongest assets while his unique management style has brought success to all endeavors he pursues.

Jim R. Ehrets, P.Geol. - U.S. Operations Advisor, Director

Jim brings 30 years of experience as a Petroleum Geologist to Primary's current technical team. His past experience includes the last four years as VP Exploration for Headington Oil Company, LLC (“HOC”). As a member of the senior management team for the Texas-based independent, his responsibilities included management of HOC's horizontal Bakken drilling program in the Williston Basin which culminated in the $1.85 billion divesture to XTO Energy. Previously, Jim also served as a consultant to various CamWest Companies where he was involved in horizontal drilling programs in the Northern Rockies and also provided technical assistance for their $300 million asset divestiture to PrimeWest Energy.

Brian J. Spilchen, CMA - CFO

Mr. Spilchen holds a Certified Management Accountant designation, as well as a BA degree (Economics) from the University of Alberta. Mr. Spilchen was formerly VP Finance & CFO, Director and Co-Founder of Nexstar Energy Ltd., a publically traded (TSX-V) oil and gas company based in Calgary, Alberta. Nexstar was sold in February 2010 and was one of the first companies involved in the successful drilling of horizontal Cardium light oil wells in the Pembina area of Alberta. Mr. Spilchen has several years' experience working in banking and finance, combined with providing financial consulting services to junior oil and gas companies.

Rod Haverslew M.Sc., P. Geol. - VP Exploration

Rod is a Professional Geologist with over 30 years of diverse oil and gas experience. He holds a M.Sc. Degree in Geology and is an active member of APEGGA, the Canadian Society of Petroleum Geologists, the American Association of Petroleum Geologists and the Geological Association of Canada. Rod's extensive experience includes regional studies, prospect generation, development and exploitation optimization as well as evaluating corporate and property acquisitions. Several prospects initiated by Rod have resulted in significant discoveries which have produced in excess of 25 million barrels of recoverable oil equivalent with an estimated 35 million BOE remaining. He has held several management positions including VP Exploration and President as well as Board member of a TSE listed company for 15 years.

Robert Bailey, P.Eng - Operations Consultant

Robert brings 30 years of operations experience with a strong focus on senior management/reservoir engineering which is value based. Robert brings extensive operations experience in oil production; drilling; completions; facilities and work overs. Previous to joining Primary Petroleum, Robert was VP Engineering, COO and Director for Excelsior Energy Ltd. Robert also worked for Encana as an Advisor for divestitures and Corporate Development and previously to that with Ryder Scott Company Petroleum Consultant as a consulting Reservoir Engineer.

Bill is a senior level management engineering consultant through applied knowledge and hands on experience of drilling, completions and production practices, with special emphasis on advanced levels of drilling technology, including horizontal, high angle and horizontal re-entries with single or multi-leg potential. His 30+ years of experience in the industry came from working with companies like; Noble Energy Inc., as their Project Manager for drilling and completion operations; Continental Resources Inc., Drilling Engineer on extended Bakken horizontal wells (21,000ft) and Bakken tri-lateral wells; Anschutz Exploration Corporation; EnCana Oil and Gas, USA and BP Amoco Production Company all as a Engineering Consultant in charge of all field operations and Camwest Exploration, LLC, as a drilling and well-site consultant.

Colleen Bailey - Manager of Land

Ms Bailey brings thirty years of business experience to Primary, most recently as the founder and President of Tangent Energy, an urban design firm established in 2006. Ms Bailey also founded Gable House Investments Ltd. in 1998 with the goal of investing in non-operated exploration and development opportunities in Saskatchewan and Alberta. This business model proved to be successful for Ms Bailey and her partners and the working interests were converted into shares in a publically trading enterprise and subsequently sold.

Having completed her education as a Petroleum Landman just as the National Energy program was implemented in Alberta, Ms Bailey was transferred to the gulf coast of the United States to manage the land department of Caribe Petroleums Inc., providing the opportunity to round out her Canadian experience with three years of US land and contract work. Ms Bailey is an Albertan with family ties to the oil business that date back to the hay days of the industry giving her an ethical and creative approach to the current business climate along with extensive experience in land asset management and value enhancement.

Advisors

Don R. Lee, Attorney, Advisor - Land Leasing & Title Opinions, Montana

Mr. Lee has vast experience in all aspects of oil and gas law, inclusive of extensive hearing work before the Montana Board of Oil and Gas Conservation. He is considered amongst his peers as an expert in title opinions, farm out, pooling and communitization agreements, purchase and sale of producing properties, negotiations of gas purchase contracts on both well head and delivered basis. Mr. Lee has represented a variety of clients from the largest gas producer in the State of Montana, Fidelity Exploration & Production Company, to large independents such as Noble energy Inc., and many smaller companies. Mr. lee also performed a multitude of legal services for Encana Energy Resources Inc.(one of the largest natural gas producers in Canada and one of the top (5) gas producers in the USA.

P. Ted Doughty - Ph.D., P.Geol.

Mr. Doughty is the founder of PRISEM Geoscience Consulting LLC, which provides comprehensive geological consulting services to the petroleum industry. Mr. Doughty received his B.A. degree in geology from Washington University in St. Louis in 1986, his M.Sc. degree from the University of Montana in 1990, and his Ph.D. from Queens University in 1995. He has worked for Amoco Production Company in Denver as an exploration geologist and as a research geologist for Exxon Production Research Company. After teaching geology at Eastern Washington University for eight years, he formed PRISEM Geoscience in 2005. Since then he has consulted with various companies on conventional and unconventional exploration in the Rockies and throughout the United States and Canada

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