AGM Documents 3

Yoho Resources Inc. Announces 54% Increase in Total Proved plus Probable Reserves as at September 30, 2011 and updates operations

Calgary, Alberta – November 28, 2011 - Yoho Resources Inc. (“Yoho” or the “Company”) is pleased to
provide an operational update and announce the results of its independent reserve evaluation for its fiscal
year ended September 30, 2011 as evaluated by GLJ Petroleum Consultants Ltd. (“GLJ”). The
Company’s annual audit of its financial statements is not yet complete and accordingly all financial
amounts referred to in this press release are estimates and are subject to revision. Complete reserves
disclosure will be included in Yoho’s Annual Information Form for its fiscal year ended September 30,
2011, which is expected to be filed in early December 2011.

Highlights

  • Yoho’s proved plus probable reserves as at September 30, 2011 increased 54% to 14,034 Mboe.

  • Yoho’s production during fiscal 2011 averaged 2,475 boe per day, a 9% increase over fiscal 2010
    production.

  • ƒIn a year of reduced capital expenditures, reserve replacement was 319% on proved reserves
    and 643% on proved plus probable reserves.

  • ƒ During 2011, Yoho drilled the first horizontal wells in the Nig Creek and Mike resource plays.
    Yoho also participated in the second horizontal well ever drilled into the Duvernay shale play in
    West Central Alberta, following up last year’s initial exploratory venture into this emerging shale
    play.

  • ƒ For fiscal 2011, Yoho achieved all-in finding, development and acquisition costs of $16.56 per
    boe (including all technical revisions and changes in future capital). For the past three years,
    Yoho’s rolling average finding, development and acquisition costs were $14.92 per boe (including
    all technical revisions and changes to future capital).

  • ƒ Yoho’s proved plus probable reserve life index (RLI), based on fourth quarter average production,
    increased by 45% to 16 years from 11 years at September 30, 2010.

  • ƒ Net capital expenditures for fiscal 2011 were $34.4 million. Capital expenditures for fiscal 2011
    were 21% lower than the $43.8 million spent in fiscal 2010.

  • ƒ At September 30, 2011 Yoho had 151,812 net acres of undeveloped land with an internally
    estimated value of $45.6 million.

  • ƒ The net present value of Yoho’s estimated future net revenue before income taxes from proved
    plus probable reserves, utilizing GLJ’s October 1, 2011 price forecast and discounted at 10%, is
    $149.7 million.

  • Yoho’s net asset value per share as at September 30, 2011 is calculated at $4.32 per share
    (basic).

Operations Update

Fiscal 2011 was a year of substantial exploration success for Yoho. Faced with extremely low pricing for
natural gas and a continued pessimistic outlook for the commodity, Yoho undertook to increase our
efforts to explore for natural gas containing higher quantities of liquids as well as prospective oil plays,
substantially increasing the economic viability of the Company’s asset base relative to the dry natural gas
which the Company had historically been exploring for and producing.

Yoho successfully drilled a number of horizontal wells in the following three resource plays during 2011:

  • a high liquids content Duvernay shale gas play at Kaybob in west central Alberta;

  • a liquids rich Montney gas play at Nig Creek in north-east British Columbia; and

  • a Jean Marie gas play at Mike in north-eastern British Columbia.

Currently the Company has ongoing drilling and completions operations on the third and fourth horizontal
wells at Nig Creek and 2 horizontal wells at Kaybob in the Duvernay shale.

Yoho is currently planning a capital program for fiscal 2012 of between $35 and $40 million. With the
continued volatility in commodity prices, the activity levels for fiscal 2012 will be monitored closely,
particularly in light of current low natural gas pricing.

Drilling

During the year ended September 30, 2011, Yoho drilled 9 (4.7 net) wells resulting in 7 (3.9 net) gas wells
and 2 (0.8 net) oil wells with an overall success rate of 100% on net wells drilled.

Land Holdings

The Company internally estimated the fair market value of its net undeveloped land holdings as at
September 30, 2011 to be $45.6 million. This evaluation was completed principally using industry activity
levels, third party transactions and land acquisitions that occurred in proximity to Yoho’s undeveloped
lands during the past year.

A summary of the Company’s land holdings at September 30, 2011 is outlined below:

 

Developed Acres

Undeveloped Acres

Total Acres

Location

Gross (1)

Net (2)

Gross (1)

Net (2)

Gross (1)

Net (2)

             

Alberta

66,500

24,600

136,500

79,412

203,000

104,012

British Columbia

39,175

13,238

111,600

72,400

150,775

85,638

Other

320

145

-

-

320

145

Total

105,995

37,983

248,100

151,812

354,095

189,795


Notes:
(1) “Gross” means the total area of properties in which the Company has an interest
(2) “Net” means the total area in which the Corporation has an interest multiplied by the working interest owned by the
Company.

Reserves

The reserves data set forth below is based upon an independent reserve assessment and evaluation
prepared by GLJ dated November 21, 2011 with an effective date of September 30, 2011 (the “GLJ
Report”). The following presentation summarizes the Company’s crude oil, natural gas liquids and natural
gas reserves and the net present values before income taxes of future net revenue for the Company’s
reserves using forecast prices and costs based on the GLJ Report. The GLJ Report has been prepared
in accordance with the standards contained in the COGE Handbook and the reserve definitions contained
in National Instrument 51-101.
All evaluations and reviews of future net cash flows are stated prior to any provisions for interest costs or
general and administrative costs and after the deduction of estimated future capital expenditures for wells
to which reserves have been assigned. It should not be assumed that the estimates of future net
revenues presented in the tables below and in the “Highlights” section above represent the fair market
value of the reserves. There is no assurance that the forecast prices and cost assumptions will be
attained and variances could be material. The recovery and reserve estimates of our crude oil, natural
gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that
the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves
may be greater than or less than the estimates provided herein.

Reserves Summary

The Company’s total proved plus probable reserves increased by 54% in fiscal 2011 to 14,034 Mboe.
Proved reserves increased by 35% to 7,714 Mboe and comprised 55% of the Company’s total proved
plus probable reserves. Proved undeveloped reserves are 37% of the total proved reserves. The future
capital in the GLJ Report is $86.7 million for the proved and probable reserves.

The following table provides summary reserve information based upon the GLJ Report and using the
published GLJ (October 1, 2011) price forecast.

 

Light and Medium Oil

 

Heavy Oil

 

Natural Gas Liquids

 
 

Company Interest (1)

Net (2)

 

Company Interest (1)

Net(2)

 

Company Interest (1)

Net (2)

 
 

(Mbbl)

(Mbbl)

 

(Mbbl)

(Mbbl)

 

(Mbbl)

(Mbbl)

 
                   

  Proved producing

350

264

 

115

95

 

509

372

 

  Non-producing

1

1

 

-

-

 

105

83

 

  Undeveloped

116

90

 

-

-

 

499

389

 

Total proved

467

355

 

115

95

 

1,112

843

 

Probable

324

246

 

29

24

 

1,316

976

 

Total proved & probable

791

600

 

145

119

 

2,428

1,819

 

 

   

Natural Gas

 

Total Barrels of Oil Equivalent (3)

   

Company Interest (1)

Net (2)

 

Company Interest (1)

Net (2)

   

(Mmcf)

(Mmcf)

 

(Mboe)

(Mboe)

             

  Proved producing

 

19,146

17,241

 

4,166

3,605

  Non-producing

 

3,690

3,065

 

720

594

  Undeveloped

 

13,282

11,479

 

2,828

2,392

Total proved

 

36,118

31,785

 

7,714

6,590

Probable

 

27,905

23,998

 

6,320

5,246

Total proved & probable

 

64,023

55,782

 

14,034

11,836


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) “Net” reserves means Yoho’s working interest (operated and non-operated) share after deduction of royalty obligations,
plus Yoho’s royalty interest in reserves.
(3) Barrels of oil equivalent amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to
one barrel of oil. Boes maybe misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet
of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead
(4) May not add due to rounding. 

Reserves Values

The estimated before tax net present value of future net revenues associated with Yoho’s reserves
effective September 30, 2011 and based on the published GLJ (October 1, 2011) future price forecast are
summarized in the following table:

 

Discounted at

 

Undiscounted

 

5%

 

10%

 

15%

 

20%

(M$)

                   
                     

  Proved producing

 

101,623

 

79,097

 

64,905

 

55,259

 

48,318

  Non-producing

 

17,423

 

12,552

 

9,755

 

7,978

 

6,759

  Undeveloped

 

52,005

 

28,156

 

15,021

 

7,146

 

2,108

Total proved

 

171,051

 

119,805

 

89,681

 

70,383

 

57,184

Probable

 

184,955

 

99,055

 

60,020

 

39,328

 

27,047

Total proved plus probable

 

356,006

 

218,861

 

149,701

 

109,710

 

84,231


Notes:

(1) The estimated future net revenues are stated before deducting future estimated site restoration costs and are reduced for
estimated future abandonment costs and estimated capital for future development associated with the reserves.
(2) The net present value of future revenues does not represent fair market value.
(3) May not add due to rounding.

Price Forecast

The GLJ October 1, 2011 price forecast is summarized as follows:

 

$US/$Cdn

WTI @

Edmonton

Hardisty Heavy

Natural gas

Westcoast

Year

Exchange

Cushing

light crude oil

12 API

at AECO-C

Station 2

 

Rate

     

spot

 
   

(US$/bbl)

(C$/bbl)

($Cdn/bbl)

(C$/MMbtu)

(C$/MMbtu)

2011 Q4

0.98

85.00

91.84

61.49

3.90

3.70

2012

0.98

90.00

94.39

66.16

4.36

4.16

2013

0.98

95.00

96.94

70.78

4.59

4.39

2014

0.98

100.00

101.02

73.81

5.05

4.85

2015

0.98

100.00

101.02

73.81

5.51

5.31

2016

0.98

100.00

101.02

73.81

5.97

5.77

2017

0.98

101.36

102.41

74.83

6.43

6.23

2018

0.98

103.38

104.47

76.36

6.86

6.66

2019

0.98

105.45

106.58

77.92

7.00

6.80

2020

0.98

107.56

108.73

79.52

7.14

6.94

 Thereafter

---

+2.0%/yr

+2.0%/yr

+2.0%/yr

+2.0%/yr

+2.0%/yr


Notes:
(1) Inflation is accounted for at 2.0% per year

Capital Program Efficiency

The efficiency of the Company’s capital program for the fiscal year ended September 30, 2011 is
summarized below.

 

2011

2010

Three Year Average

2009 - 2011

   

Proved

 

Proved

 

Proved

   

plus

 

plus

 

plus

 

Proved

Probable

Proved

Probable

Proved

Probable

Exploration and Development expenditures

   

($ thousands) (4)

35,225

35,225

22,600

22,600

71,341

71,341

Acquisitions ($ thousands) (2) (4)

(810)

(810)

21,158

21,158

22,154

22,154

Change in future development capital ($thousands)

     

     - Exploration and Development

31,667

61,730

5,214

13,428

37,177

77,756

     - Acquisitions

-

-

2,695

4,133

2,695

4,133

Reserves additions after revisions (Mboe) (5)

     

     - Exploration and Development

2,900

5,829

2,125

3,116

5.980

10,310

     - Acquisitions

(18)

(23)

795

1,265

949

1,445

     - Total reserve additions after revisions

2,882

5,806

2,920

4,381

6,929

11,755

Finding & Development Costs ($/boe) (1) (4)

23.07

16.63

13.09

11.56

18.14

14.46

             

Finding, Development & Acquisition Costs ($/boe) (3) (4)

22.93

16.56

17.69

14.00

19.24

14.92

             

Reserves Replacement Ratio

319%

643%

353%

529%

265%

449%

             

Notes:

(1) The aggregate of the exploration and development costs incurred in the most recent financial year and the change during
that year in estimated future development costs generally will not reflect total finding and development costs related to
reserve additions for that year.
(2) The acquisition costs related to corporate acquisitions reflects the consideration paid for the shares acquired plus the net
debt assumed, both valued at closing and does not reflect the fair market value allocated to the acquired oil and gas
assets under Canadian Generally Accepted Accounting Principles.
(3) Calculation includes reserve revisions and changes in future development costs. Yoho also calculates finding,
development and acquisition ("FD&A") costs which incorporate both the costs and associated reserve additions related to
acquisitions net of any dispositions during the year. Since acquisitions can have a significant impact on Yoho's annual
reserve replacement costs, the Company believes that FD&A costs provide a more meaningful representation of Yoho's
cost structure.
(4) Fiscal 2011 figures include information based on estimated unaudited financial results that may change on the completion
of the audited financial statements.
(5) Barrel of oil equivalents or boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl
is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead.

Net Asset Value

The following table provides a calculation of Yoho’s estimated net asset value and net asset value per
share based on the estimated future net revenues associated with Yoho’s proved plus probable reserves
discounted at 10% as presented in the GLJ Report.

Forecast Prices and Costs before tax

($ thousands)

Proved plus probable reserves – discounted at 10%

149,701

Undeveloped land (1)

45,600

Bank debt and estimated working capital deficiency as at September 30, 2011 (2)(3)

(22,605)

Net asset value

172,696

Common shares outstanding at September 30, 2011 (thousands)

39,940

Net asset value per share

$ 4.32    


Notes:
(1) Internally estimated value (see “Land Holdings”)
(2) Fiscal 2011 figures include information based on estimated unaudited financial results that may change on the completion
of the audited financial statements.
(3) Working capital deficiency includes an estimate of the Company’s accounts receivable and future tax less accounts
payable and accrued liabilities and derivatives as at September 30, 2011.

About Yoho

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

Brian A. McLachlan
President and CEO
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

Unaudited financial information

Certain financial and operating information included in this press release for the year ended September 30, 2011,
such as finding and development costs, production information, and net asset value, are based on estimated unaudited financial results for the quarter and year then ended, and are subject to the same limitations as discussed
under Forward Looking Information set out below. These estimated amounts may change upon the completion of
audited financial statements for the year ended September 30, 2011 and changes could be material.

Internal estimates

Additionally, certain information contained herein, such as the estimated fair value of the Company’s land holdings,
are based in estimated values the Company believes to be reasonable and are subject to the same limitations as
discussed under “Forward-looking Information and Statements” below.

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;Yoho’s fiscal
2012 budget; current field operations; the life of Yoho's reserves; 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 and reserve estimates of Yoho's reserves provided herein are estimates only and there is no guarantee
that the estimated reserves will 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.

Oil and Gas Advisory

The reserves information contained in this press release has been prepared in accordance with National Instrument
51-101 "Standards of Disclosure for Oil and Gas Activities" of the Canadian Securities Administrators ("NI 51-101").
Complete NI 51- 101 reserves disclosure will be included in our Annual Information Form for the year ended
September 30, 2011. Listed below are cautionary statements that are specifically required by NI 51-101:

  • Where applicable, oil equivalent amounts have been calculated using a conversion rate of six thousand
    cubic feet of natural gas to one barrel of oil. BOEs may be misleading, particularly if used in isolation. A
    boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy
    equivalency conversion method primarily applicable at the burner tip and does not represent a value
    equivalency at the wellhead.

  • Individual properties may not reflect the same confidence level as estimates of reserves for all properties
    due to the effects of aggregation.

  • With respect to finding and development costs, the aggregate of the exploration and development costs
    incurred in the most recent financial year and the change during that year in estimated future development
    costs generally will not reflect total finding and development costs related to reserve additions for that
    year.

  • This press release contains estimates of the net present value of our future net revenue from our
    reserves. Such amounts do not represent the fair market value of our reserves.

  • Reserves included herein are stated on a company interest basis (before royalty burdens and including
    royalty interests) unless noted otherwise as well as on a gross and net basis as defined in NI 51-101.
    "Company interest" is not a term defined by NI 51-101 and as such the estimates of company interest
    reserves herein may not be comparable to estimates of “gross” reserves prepared in accordance with NI
    51-101 or to other issuers' estimates of company interest reserves.

Selected Definitions

The following terms used in this press release have the meanings set forth below:

"AECO" refers to a natural gas storage facility located at Suffield, Alberta
"API" means American Petroleum Institute

"Bbl" means barrel

"boe" means barrel of oil equivalent of natural gas and crude oil on the basis of 1 boe for six thousand cubic feet of
natural gas (this conversion factor is and industry accepted norm and is not based on either energy content or current
prices)

"Mboe" means 1,000 barrels of oil equivalent

"MMbtu" means million British Thermal Units

"$M" means thousands of dollars

"WTI" means West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma for the crude
oil standard grade.