AGM Documents 3

Yoho Resources Inc. enters into an agreement to acquire a limited partnership with oil and gas properties in northeast British Columbia, provides updated fiscal 2007 guidance and reports 2006 fiscal year operational update

Calgary, Alberta – December 7, 2006. Yoho Resources Inc. (“Yoho” or the
“Company”) is pleased to announce that it has entered into an agreement to acquire a
limited partnership with natural gas producing properties in northeast British Columbia.
The majority of the acquired properties are located in the Buick Creek, Mike and Siphon
areas. The transaction is expected to close on or about December 31, 2006, (effective the
same day), and is subject to certain conditions, including financing and the completion of
satisfactory due diligence. The purchase price, after estimated adjustments at closing,
will be approximately $25.1 million.

Acquisition Highlight

  • Yoho acquires 87,600 gross (34,700 net) acres of land, of which 23,800 net acres of
    land is classified as undeveloped. Yoho estimates the value of the undeveloped land
    at a minimum of $3.6 million;
  • Proved plus probable reserves have been independently evaluated at 1,217 MBOE
    (75% natural gas);
  • Current production is approximately 2,800 MCF per day of natural gas and 40 BBLS
    per day of natural gas liquids (505 BOEPD);
  • Yoho also acquires interests in several natural gas facilities and substantial
    infrastructure related to the acquired production and lands;
  • A total of 26 drilling locations have been identified on the acquired lands. Yoho has
    identified 12 initial locations for immediate drilling within Yoho’s fiscal 2007 budget
    and several additional re-completion candidates on these properties;
  • Yoho has updated its production estimates to average between 1,850 and 1,900 BOE
    per day for its fiscal year ended September 30, 2007; and 2
  • For calendar 2007, Yoho estimates production to average between 1,900 and 2,000
    BOE per day.

Equity Financing

Yoho has entered into an agreement with a syndicate of investment dealers, led by
FirstEnergy Capital Corp. and including Peters & Co. Limited, Sprott Securities Inc. and
Westwind Partners Inc. to raise by way of private placement, up to $20 million through
the issue of common shares and flow through common shares of the Company on a best
efforts basis.

This equity issue is subject to approval by the TSX Venture Exchange and closing is
expected to occur on or about December 20, 2006. Proceeds from this equity offering
will be used to partially fund the acquisition of the northeast British Columbia properties
and to fund Yoho’s other capital expenditures.

New Guidance for 2007 Fiscal Year

Upon closing the acquisition of the British Columbia properties, Yoho’s production will
immediately increase to 1,450 BOE per day. Yoho has an additional 150 - 175 BOE per
day temporarily shut in and an additional estimated 80 – 100 BOE per day behind pipe
with current completion operations ongoing.

Yoho plans to direct approximately $7.5 million of the Company’s previously announced
$31 million fiscal 2007 capital program to the acquired assets. Estimating reasonable
drilling success for the fiscal 2007 drilling plans, the Company expects to average on a
combined basis, with the acquisition of B.C. assets, 1,850 to 1,900 BOEPD for fiscal
2007 and exit fiscal September 2007 between 2,000 and 2,100 BOEPD.

Exploration and development activities on the acquired lands will continue into fiscal
2008.

Exploration and Outlook

Yoho has substantially increased its exploration and development presence in the western
Peace River Arch and will continue to build on those strengths in 2007. The announced
acquisition in British Columbia will be Yoho’s second core area.

The Company has identified 12 drilling locations on the acquired properties that will be
included in Yoho’s 2007 drilling program. Yoho also has identified a substantial
inventory of other potential exploration and development opportunities that the Company
will pursue beyond fiscal 2007.

Yoho will continue to work on investing with high capital efficiencies and per share
growth. The Company is well situated for growth in our original core area with 56,194
net acres of undeveloped lands and substantial seismic inventory in Alberta and 23,000 3
net acres of undeveloped land and also a substantial seismic inventory in the Company’s
new core area of northeast British Columbia.

YOHO SEPTEMBER 2006 FISCAL YEAR END – OPERATIONAL UPDATE

Land

Yoho added 29,800 net acres of lands during fiscal 2006. Prior to the above acquisition,
the Company currently has 56,194 net acres of undeveloped lands, almost exclusively
located within the Company’s core area of the western Peace River Arch of Alberta.
Land expenditures for the year totaled $5.4 million. This land base provides excellent
opportunities to Yoho for future exploration and development in 2007 and beyond.

Seismic

Yoho continues to add to the Company’s seismic data base with both 2D and 3D
acquisitions during the year. Capital allocated to seismic was $2.2 million in fiscal 2006.

Drilling

Yoho’s first year of operations was active. The Company participated in drilling 33 gross
(14.4 net) wells resulting in 17 gross (7.5 net) gas wells, 7 gross (3.2 net) oil wells and 9
gross (3.7 net) dry holes. Capital expenditures for fiscal 2006 are broken down as
follows:

   

2006 Fiscal Year Estimate

Land

 

$  5,400,000

Seismic

 

2,200,000

Drilling & Completion

 

12,200,000

Facilities, Equipment & Pipelines

 

4,800,000

Other

 

700,000

TOTAL

 

$25,300,000


Production

Yoho’s production for the 2006 fiscal year averaged 706 BOE per day consisting of 2.4
MMCF per day and 302 BBLS per day average for the year. This compares with average
production for 2005 (partial year) of 556 BOEPD. Production for the fourth quarter of
fiscal 2006 averaged 895 BOEPD and the company exited fiscal 2006 at approximately
1,000 BOEPD.

Yoho’s current production, prior to the acquisition, is approximately 975 BOE per day
with 150-175 BOE per day from two wells being temporarily shut in and an additional 80
-100 BOE per day behind pipe awaiting tie-in. Both shut in gas wells are expected to
resume production in the next several weeks. Completion operations for the behind pipe
volumes are underway.

Yoho’s current production capability, with all of the activity noted above coming onstream
is estimated to be 1,200 – 1,250 BOE per day.

Oil and Gas Reserves

Yoho’s September 30, 2006 reserves were prepared and evaluated by GLJ Petroleum
Consultants under the guidelines of NI 51-101. The GLJ report outlines Yoho’s reserves
as follows:

  • Proven plus probable reserves at September 30, 2006 were 2,197 MBOE, compared
    to 863 MBOE at September 30, 2005 an increase of 155%. Proved plus probable
    reserves per diluted share increased by 122% during the same period.

  • Proved reserves at September 30, 2006 were 1,441 MBOE as compared to 689
    MBOE at September 30, 2005, an increase of 109%, while reserves per diluted
    share increased 87% during the same period.

  • Proved reserves of 1,441 MBOE comprised 66% of the total proven plus probable
    reserves. Proved producing reserves of 1,008 MBOE were 70% of total proved
    reserves.

The following table provides summary information presented in the September 30, 2006
GLJ report based on the GLJ (2006-10) price forecast. Additional reserve information
will be presented in the Company’s fourth quarter and year-end financial results press
release scheduled to be circulated on December 12, 2006 and in the Statement of Reserve
Data and Other Oil and Gas Information form scheduled to be filed on SEDAR prior to
January 29, 2007.

SUMMARY OF OIL AND GAS RESERVES AS OF SEPTEMBER 30, 2006

ESCALATED PRICES AND COSTS

COMPANY INTEREST RESERVES (1)

 

RESERVES

 

LIGHT AND MEDIUM OIL

 

 

HEAVY OIL

 

 

NATURAL GAS

 

NATURAL GAS LIQUIDS

BARRELS OF OIL EQUIVALENT (2)

RESERVES CATEGORY

(Mbbl)

(Mbbl)

 (MMcf)

 (Mbbl)

(Mboe)

PROVED

         

   Developed Producing

49

204

3,830

117

1,008

   Developed Non-Producing

0

20

2,051

21

383

   Undeveloped

0

0

289

1

49

TOTAL PROVED

49

224

6,170

140

1,441

PROBABLE

23

50

3,777

53

756

TOTAL PROVED PLUS PROBABLE

72

274

9,947

193

2,197


Notes:
(1) Company interest reserves means, Yoho’s working interest (operating and non-operating) share
before deduction of royalties and including any royalty interest of the company.
(2) Oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of
natural gas to one barrel of oil. This 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.
Readers are cautioned that the term “boe” may be misleading, particularly if used in isolation. 

Capital Efficiencies

Finding, development and acquisition costs (FD&A) related to the total fiscal 2006
capital program (including the change in future capital) as calculated by the Company
were $17.05 per BOE proved plus probable. With estimated fiscal 2006 netbacks of
$28.00 per BOE, this translates into a recycle ratio of 1.65 times on a proved plus
probable basis. All in production replacement costs were calculated by Yoho to have
been approximately $32,000 per BOE per day in fiscal 2006. This includes $7.6 million
(30% of total capital) of capital allocated to undeveloped lands and seismic.

Yoho Resources Inc. is a Calgary based junior oil and natural gas company with
operations focusing in the northwest Peace River Arch of Alberta. The common shares
of Yoho are listed on the TSX Venture Exchange under the symbol “YO”.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy
the securities in any jurisdiction. The common shares of Yoho will not be and have not
been registered under the United States Securities Act of 1933, as amended, and may not
be offered or sold in the United States, or to a U.S. person, absent registration or
applicable exemption therefrom.

For more information please contact:

Wendy S. Woolsey
Vice President, Finance and CFO
Yoho Resources Inc.
Phone: (403) 537-1771
www.yohoresources.ca

The TSX Venture Exchange has neither approved nor disapproved the contents of this
press release.



CAUTIONARY STATEMENTS

Certain statements regarding Yoho Resources Inc. include management’s assessments of future plans and
operations, may constitute forward-looking statements under applicable securities laws and necessarily
involve known and unknown risks and uncertainties, most of which are beyond Yoho's control. These risks
may cause actual financial and operating results, performance, levels of activity and achievements to differ
materially from those expressed in, or implied by, such forward-looking statements.

Such factors include, but are not limited to: the impact of general economic conditions in Canada and the
United States; industry conditions including changes in laws and regulations including adoption of new
environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the
lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and
development drilling and related activities; imprecision in reserve estimates; the production and growth
potential of Yoho's various assets; fluctuations in foreign exchange or interest rates; the ability to access 6
sufficient capital from internal and external sources; and obtaining required approvals of regulatory
authorities.

Accordingly, Yoho gives no assurance nor makes any representations or warranty that the expectations
conveyed by the forward-looking statements will prove to be correct and actual results may differ
materially from those anticipated in the forward looking statements. Yoho undertakes no obligation to
publicly update or revise any forward-looking statements.

BOE PRESENTATION

In conformity with National Instrument 51-101, Standards for Disclosure of Oil and Gas Activities (“NI
51-101), natural gas volumes have been converted to barrels of oil equivalent (“boe”) using a conversion
rate of six thousand cubic feet of natural gas to one barrel of oil. This 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. Readers are cautioned that the term “boe” may be misleading, particularly if
used in isolation.