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Lynden Energy Reports Financial Results for the Three Months Ended September 30, 2012

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/30/12 -- Lynden Energy Corp. (TSX VENTURE:LVL) (the "Company") reports its first quarter fiscal 2013 results. Highlights for the 3 months ended September 30, 2012 (the "Current Period"), compared to the three months ended September 30, 2011 (the "Prior Year"), include:

--  Total production increased 219% to 90,230 boe (980 boe/d)
--  Gross revenues, net of royalties, increased 192% to $4,647,971

Production for the three months ended September 30, 2012 totaled 90,230 boe (980 boe/d), an increase of 43% over production in the three months ended June 30, 2012.

All of the production is attributable to the Wolfberry Project. The production mix, on a percent per boe basis, from the Wolfberry Project is approximately 65% oil and 35% natural gas and associated products.

First Quarter 2013 Financial Results

This news release should be read in conjunction with the Company's consolidated interim financial statements for the three months ended September 30, 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 $1,273,854 and total comprehensive income of $1,446,246 for the Current Period compared to net earnings of $779,634 and total comprehensive income of $645,011 for the Prior Period. Significant components of the Current Period's net earnings were net revenue of $4,629,903 and depletion and depreciation of $1,700,667.

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

The Company reported gross P&NG revenues of $6,041,722 (Prior Period - $3,136,991) for the Current Period, all from its Wolfberry Project wells. In conjunction with the revenues, the Company reported royalties paid of $1,393,751 (Prior Period - $714,379) and paid production and operating expenses of $671,416 (Prior Year - $272,825) for the Current Period. The Company also incurred $1,700,667 (Prior Period - $851,049) of depletion and depreciation for the Current Period. Average realized prices for the Current Period, were $88 per barrel ("Bbl") of oil and $4.76 per thousand cubic feet ("Mcf") of natural gas, compared to $86 per Bbl of oil and $8.82 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.

Liquidity - Borrowing Base Increases

The Company has a $50 million reducing revolving line of credit with Texas Capital Bank. Effective September 30, 2012, the line of credit had a $26.9 million borrowing base of which $23.0 million was drawn down.

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. The Company also anticipates that it will need to raise additional capital through the sale of equity, issuance of debt or the sale of assets. The availability of the additional capital on terms acceptable to the Company or at all is subject to a number of risks and uncertainties, many of which are beyond the Company's control.

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 has, as of today, 53 gross (22.45 net) wells tied-in and producing. During the three months ended September 30, 2012, a total of 8 gross (3.41 net) new wells were tied into production. At September 30, 2012, the Company had 6 gross (2.49 net) wells spud or drilled awaiting completion and/or tie-in.

The Company's current plans call for 43 gross (18.14 net) Wolfberry Project wells to spud from July 1, 2012 to June 30, 2013 (fiscal 2013) at an estimated cost to the Company of approximately $44 million. The Company's funding amount for the 18.14 net wells is equivalent to 20.73 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 67,400 acres, and a 1.25% overriding royalty interest on approximately 36,000 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 $31,283 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.

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. The Company plans to spud one (0.5 net) vertical well in proximity to the Spade 17 #1 in fiscal 2013.

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 43 gross (18.14 net) Wolfberry Project wells from July 1, 2012 to June 30, 2013 (fiscal 2013), 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contacts:
Lynden Energy Corp.
(604) 629-2991
(604) 602-9311 (FAX)
www.lyndenenergy.com

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