AGM Documents 3

Yoho Resources Inc. Announces Financial and Operating Results for the First 2010 Fiscal Quarter and Provides Operational Update

Calgary, Alberta  - February 25, 2010 - Yoho Resources Inc. (“Yoho” or the “Company”)filed today the interim unaudited consolidated financial statements for the three months ended December 31, 2009 and related Management’s Discussion and Analysis on www.sedar.com.

Highlights

  • Production for the three months ended December 31, 2009 was 2,236 boe per day, consistent with the 2,285 boe per day for the three months ended December 31, 2008 as natural declines offset production added through drilling success in a limited capital program.
  • Generated funds from operations for Q1 2010 of $2.7 million.  On a per share basis, funds from operations for the three months ended December 31, 2009 were $0.13 per share diluted.
  • Maintained a flexible balance sheet with total net debt of $23.3 million at December 31, 2009 with a bank credit facility of $32 million.
  • Net capital expenditures for the first fiscal quarter were $3.2 million.  Yoho drilled one (0.8 net) gas well during the quarter at Buick Creek.  The well was placed on production in February, 2010, and is currently producing at 2.1 mmcf per day.

Financial

In the quarter ended December 31, 2009 Yoho generated funds from operations of $2.7 million, with a realized natural gas wellhead price of $4.43 per mcf.  On a per share basis, funds from operations for the quarter were $0.13 basic and diluted.  A continued commitment to maintaining top quartile cash costs allows the Company to maintain positive netbacks at reduced commodity prices.  With the continued volatility in commodity prices, the activity levels for fiscal 2010 will be monitored to match capital expenditures with expected cash flow.  Yoho is currently planning a capital program for fiscal 2010 of between $14 and $15 million.

In November 2009, Yoho issued 625,000 development flow-through common shares for total gross proceeds of $1.5 million.  Yoho currently has drawn $21.7 million on its bank credit facility of $32 million, with the remaining facility available to manage its working capital requirements through the winter drilling season.

In February 2010, the Company entered into the following contracts for natural gas, which covers approximately 30% of Yoho’s current natural gas production:

Contract

Term

Volume

Pricing Point

Price per GJ

Costless Collar

Apr 1/10 – Dec 31/10

3,000GJ/d

AECO

$5.00 - $5.94

Physical Swap

Apr 1/10 – Oct 31/10

500 GJ/d

AECO

$4.95

Physical Swap

Apr 1/10 – Oct 31/10

500 GJ/d

AECO

$4.95 or the Monthly Index above $4.95

Operations

Buick Creek

At Buick Creek, during the first fiscal quarter Yoho drilled one horizontal well (0.8 net) utilizing underbalanced drilling technology.  The well was placed on production in February, 2010, and is currently producing at 2.1 MMcf per day.  With the success of the first well, additional horizontal locations are currently being planned on Yoho’s existing lands.

Mike / Pickell

At Mike, the winter development program targeting the Notikewin formation has completed drilling with three (3.0 net) wells currently cased as potential gas wells.  Completion and tie-in operations for these wells are currently scheduled for early March, 2010.

Jean Marie Resource Play

Drilling operations will commence in early March, 2010 on a 2,500 metre test well in this area targeting the Jean Marie formation.  Positive results from this deeper well would lead to a horizontal development program utilizing multi-stage acid completion technology within the horizontal section of the wellbore.  Yoho has accumulated a total of 26 sections of land on this unconventional resource play.

Two Rivers

At Two Rivers, Yoho has re-entered a standing vertical wellbore and completed and fraced the Montney formation.  The well produced gas from the Montney and the Company is currently analyzing all pressure and flow data from the well to determine further activity in the area.  Yoho has a well licensed for a vertical Belloy formation test offsetting this recent completion which would also secure further data from the Montney formation.  Favourable results would delineate a horizontal Montney program on the 22 sections of land that Yoho has accumulated in this area.

Kaybob

Yoho drilled a vertical Notikewin gas well (0.3 net) in Kaybob during its second fiscal quarter.  The well has been completed and is currently on production test, with tie-in anticipated during March, 2010.  Additional drilling in the Kaybob area is planned for this summer.

Yoho Resources Inc. is a Calgary based junior oil and natural gas company with operations focusing in the northwest Peace River Arch of Alberta and northeast British Columbia.  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, CA
Vice President, Finance and CFO
Yoho Resources Inc.
Phone:  (403) 537-1771
www.yohoresources.ca

Neither 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 release.

Cautionary Statements

Forward-looking information and statements

This news release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining to the following: the volumes and estimated value of Yoho's oil and gas reserves; the life of Yoho's reserves; resource estimates; the volume and product mix of Yoho's oil and gas production; future oil and natural gas prices and Yoho's commodity risk management programs; future liquidity and financial capacity; future results from operations and operating metrics; future costs, expenses and royalty rates; future interest costs; the exchange rate between the $US and $Cdn; future development, exploration, acquisition and development activities and related capital expenditures; the number of wells to be drilled and completed; the amount and timing of capital projects; operating costs; the total future capital associated with development of reserves and resources; and forecast reductions in operating expenses.

The recovery, reserve and resources estimates of Yoho's reserves and resources provided herein are estimates only and there is no guarantee that the estimated reserves or resources with be recovered. In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Yoho which have been used to develop such statements and information but which may prove to be incorrect. Although Yoho believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Yoho can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Yoho operates; the timely receipt of any required regulatory approvals; the ability of Yoho to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Yoho has an interest in to operate the field in a safe, efficient and effective manner; the ability of Yoho to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Yoho to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Yoho operates; and the ability of Yoho to successfully market its oil and natural gas products.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements; including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Yoho's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Yoho or by third party operators of Yoho's properties, increased debt levels or debt service requirements; inaccurate estimation of Yoho's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of inadequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Yoho's public disclosure documents, (including, without limitation, those risks identified in this news release and Yoho's Annual Information  Form).

The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Yoho does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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.

Non-GAAP Financial Measures

The terms “funds from operations”, “funds from operations per share”, and “cash costs” do not have any standardized meaning prescribed by Canadian GAAP. Management uses funds from operations and funds from operations per share to analyze operating performance and leverage and considers funds from operations to be a key measure as it demonstrates the Company’s ability to generate the cash necessary to fund future capital investments and to repay debt. Funds from operations should not be considered an alternative to, or more meaningful than cash flow from operating activities as determined in accordance with Canadian GAAP as an indicator of the Company’s performance. Therefore references to funds from operations or funds from operations per share (basic and diluted) may not be comparable with the calculation of similar measures for other entities.  Yoho calculates funds from operations per share using the same method used in the determination of net income per share.

Yoho also uses “operating netbacks”, “cash costs” and per boe metrics as key performance indicators.  These terms do not have a standardized meaning prescribed by Canadian GAAP and therefore may not be comparable with the calculation of similar measures by other companies.  Management considers netbacks an important measure as it demonstrates its profitability relative to current commodity prices.  The Company uses this measure to help evaluate its performance.