AGM Documents 3

Yoho Resources Inc. Announces Year End Financial Results, Corporate Reserves and Duvernay and Montney Contingent Resource Assessments

Calgary, Alberta – November 22, 2012 - Yoho Resources Inc. (“Yoho” or the “Company”) has filed today
on SEDAR the financial statements for the year ended September 30, 2012 and the related managements’
discussion and analysis ("MD&A"). Yoho today also filed its Annual Information Form for the year ended
September 30, 2012 which includes the Company's reserves data and other oil and gas information for the
year ended September 30, 2012 as mandated by National Instrument 51-101 Standards of Disclosure for
Oil and Gas Activities of the Canadian Securities Administrators ("NI 51-101"). Copies of these documents
may be found on www.sedar.com.

Yoho is also pleased to announce the results of a reserve and contingent resource assessment of the
Company’s Kaybob Duvernay assets and an updated reserve and contingent resource assessment of
certain of the Company’s Nig Montney assets as evaluated by GLJ Petroleum Consultants Ltd. (“GLJ”).

Highlights

  • Yoho’s proved plus probable reserves as evaluated by GLJ as at September 30, 2012 increased
    96% to 27.4 MMboe from 14.0 MMboe at September 30, 2011. The Company’s proved reserves
    as at September 30, 2012 increased 40% to 10.8 MMboe from 7.7 MMboe. The percentage of
    Yoho’s proved plus probable reserves that are natural gas liquids has increased to 29% at
    September 30, 2012 from 17% at September 30, 2011.

  • The net present value of Yoho’s estimated future net revenue before income taxes from proved
    plus probable reserves as at September 30, 2012 and utilizing GLJ’s October 1, 2012 price forecast
    and discounted at 10%, is $216.4 million and the net present value of total proved reserves as at
    September 30, 2012 is $87.7 million

  • Yoho’s production during fiscal 2011 averaged 2,207 boe per day, a 10% decrease from fiscal 2011
    production of 2,475 boe per day. Fiscal 2012 production was impacted by disruptions in third party
    pipelines and a resulting delay in obtaining regulatory approvals for re-commissioning. These
    disruptions have been remedied and current production is estimated at 2,500 boe per day. Yoho
    has an additional 700 boe per day behind pipe to be tied-in following completion of pipeline
    construction.

  • Notwithstanding a year of low natural gas prices, Yoho generated funds from operations for fiscal
    2012 of $9.9 million ($0.22 per share basic and diluted).

  • Net exploration and development expenditures for fiscal 2012 were $34.2 million. During the year
    ended September 30, 2012, Yoho drilled 8 (3.7 net) gas wells with an overall success rate of 100%.
    All of the wells drilled in fiscal 2012 were individual, unconventional delineation wells.

  • Yoho maintained a flexible balance sheet with total net debt of $18.5 million at September 30, 2012
    on a bank credit facility of $52 million.

  • Reserve replacement was 484% on proved reserves and 1,760% on proved plus probable
    reserves.

  • For fiscal 2012, Yoho achieved all-in finding, development and acquisition costs of $16.30 per boe
    (including all technical revisions and changes in future development capital). For the past three
    years, Yoho’s rolling average finding, development and acquisition costs were $15.95 per boe
    (including all technical revisions and changes to future development capital). Total future
    development capital for Yoho’s proved plus probable reserves at September 30, 2012 is $284.3
    million scheduled over five years. Total future development capital for Yoho’s total proved reserves
    at September 30, 3012 is $99.5 million scheduled over three years.

  • Yoho’s proved plus probable reserve life index (RLI), based on average fiscal 2012 production,
    increased by 112% to 34 years from 16 years at September 30, 2012.

  • At September 30, 2012 Yoho had 135,200 net acres of undeveloped land with an internally
    estimated value of $75.4 million.

  • Yoho’s net asset value per share as at September 30, 2012 is calculated at $5.43 per share (basic)
    including an internal land value of $75.4 million and $3.93 per share (basic) excluding land value.

  • The best estimate for the Company’s Contingent Resources for the evaluated area at Kaybob in the
    Duvernay formation is 47.3 MMboe net as at September 30, 2012, consisting of 162.6 bcf of natural
    gas and 20.2 million barrels of natural gas liquids. This estimate excludes all proved plus probable
    reserves assigned to Yoho's interests at Kaybob by GLJ as at September 30, 2012.

  • The best estimate of the Kaybob Duvernay Contingent Resources has a net present value to Yoho
    of $255.0 million (after the recovery of all anticipated capital) using a discount rate of 10% and
    utilizing the GLJ price forecast as at October 1, 2012. The net present value of the Kaybob
    Duvernay Contingent Resources is $5.07 per share basic. This value has not been included in the
    calculation of Yoho’s net asset value.

  • The best estimate for the Company’s Contingent Resources for the evaluated area at Nig in the
    Upper Montney formation is 52.7 MMboe net as at September 30, 2012, consisting of 266.3 bcf of
    natural gas and 8.3 million barrels of natural gas liquids. This estimate excludes all proved plus
    probable reserves assigned to Yoho's interest at Nig by GLJ as at September 30, 2012.

  • The best estimate of the Nig Montney Contingent Resources has a net present value to Yoho of
    $194.9 million (after the recovery of all anticipated capital) using a discount rate of 10% and utilizing
    the GLJ price forecast as at October 1, 2012. The net present value of the Nig Montney Contingent
    Resources is $3.87 per share basic. This value has not been included in the calculation of Yoho’s
    net asset value.

    FINANCIAL

     

    Year ended

    September 30, 2012

     

    Year ended

    September 30, 2011

    Financial ($)

         

    Petroleum and natural gas sales

    23,177,160

     

    29,523,389

    Funds from operations (1)

    9,917,532

     

    14,618,416

      per share - basic

    0.22

     

    0.38

      per share – diluted

    0.22

     

    0.38

    Net loss

    (8,899,211)

     

    (6,196,510)

      per share - basic

    (0.20)

     

    (0.16)

      per share – diluted

    (0.20)

     

    (0.16)

           

    Net exploration and development expenditures

    34,696,555

     

    35,029,751

    Net acquisitions and dispositions

    (488,352)

     

    (810,000)

    Total assets

    154,495,876

     

    138,595,121

    Total debt (including working capital deficiency)

    18,505,730

     

    22,622,390

    Shareholders’ equity

    113,911,023

     

    93,684,548

           

    Weighted average common shares outstanding

         

      Basic

    44,922,728

     

    38,183,816

      Diluted

    44,922,728

     

    38,183,816

           

Notes:
(1) Funds from operations is calculated as cash provided by operating activities, adding the change in non-cash working capital,
decommissioning obligation expenditures, the transportation liability charge and acquisition costs. Funds from operations is used to
analyze the Company’s operating performance and leverage. Funds from operations does not have a standardized measure prescribed
by International Financial Reporting Standards ("IFRS") and therefore may not be comparable with the calculations of similar measures for
other companies. Yoho’s calculation of funds from operations is detailed in the MD&A for the years ended September 30, 2012 and 2011. Year ended
September 30, 2012


 

Year ended

September 30, 2012

 

Year ended

September 30, 2011

Operations

     

Production

     

  Natural gas (mcf/d)

10,022

 

11,435

  Oil and NGL (bbls/d)

537

 

569

  Combined (boe/d)

2,207

 

2,475

       

Realized sales prices

     

  Natural gas ($/mcf)

2.39

 

3.62

  Oil and NGL ($/bbl)

73.32

 

69.46

       

Funds from operations per boe ($/boe)

     

  Petroleum and natural gas sales

28.68

 

32.68

  Royalties

(2.84)

 

(3.89)

  Operating expenses

(10.70)

 

(10.39)

  Operating netback (2)

15.14

 

18.40

  General and administrative

(3.29)

 

(2.86)

  Interest

(0.94)

 

(0.71)

  Realized gain on financial derivative contracts

1.37

 

1.35

  Funds from operations (1)

12.28

 

16.18

       

Drilling activity

     

  Total wells

8

 

9

  Working interest wells

3.7

 

4.7

  Success rate on working interest wells

100%

 

100%

       

Undeveloped land (net acres)

135,266

 

151,812

 

Notes:
(1) Funds from operations is calculated as cash provided by operating activities, adding the change in non-cash working capital,
decommissioning obligation expenditures, the transportation liability charge and acquisition costs. Funds from operations is used to
analyze the Company’s operating performance and leverage. Funds from operations does not have a standardized measure prescribed
by IFRS and therefore may not be comparable with the calculations of similar measures for other companies. Yoho’s calculation of funds
from operations is detailed in the MD&A for the years ended September 30, 2012 and 2011.
(2) Operating netback equals petroleum and natural gas sales including realized hedging gains and losses on commodity contracts less
royalties, operating costs and transportation costs calculated on a boe basis. Operating netback and funds from operations netback do not
have a standardized measure prescribed by IFRS and therefore may not be comparable with the calculations of similar measures for other
companies.

FINANCIAL

Notwithstanding a year of low natural gas prices, Yoho generated funds from operations for fiscal 2012 of
$9.9 million ($0.22 per share basic and diluted). The fiscal 2012 capital program focused on drilling
individual, unconventional delineation wells, primarily at Kaybob, Alberta and Nig, British Columbia. Yoho
did not drill any wells on conventional style plays during fiscal 2012. As a result of decreasing natural gas
prices during fiscal 2012, the Company recognized an $8.8 million impairment on its conventional cash
generating units. Total net debt at September 30, 2012 was $18.5 million on a bank credit facility of $52
million.

OPERATIONS UPDATE

Kaybob Duvernay

Yoho is currently drilling the first two horizontal Duvernay development wells from a pad site at 15P-16-62-
21 W6 on the Yoho operated Tony Creek block. The wells are expected to be drilled and completed by the
end of December 2012, with production testing of the well in early 2013. Construction of an 11.2 kilometer
pipeline from the padsite to a SemCams pipeline has recommenced now that surface conditions have
improved in the area with completion expected in early 2013. Upon completion of the pipeline construction,
the 13-22-62-21 W5 horizontal well, along with the 15P-16 pad production, will be brought on-stream.

Nig Montney

The 7.2 kilometer Yoho operated pipeline at Nig (50% working interest) has been completed and previously shutin
production from the d-97-H/94-H-4 gas/liquids well located in the northern portion of the Company’s land block
was placed on production on November 20, 2012. This pipeline is part of Yoho’s development plan in the Nig
area and will facilitate timely tie-in of future development wells.

LAND HOLDINGS

The Company internally estimated the fair market value of its net undeveloped land holdings as at
September 30, 2012 to be $75.4 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 previous 12 months.

A summary of the Company’s land holdings at September 30, 2012 is outlined below:

 

Developed Acres

Undeveloped Acres

Total Acres

Location

Gross (1)

Net (2)

Gross (1)

Net (2)

Gross (1)

Net (2)

             

Alberta

74,805

34,755

115,245

66,165

190,049

100,920

British Columbia

53,179

31,043

99,241

69,101

152,420

100,114

Other

324

117

-

-

324

117

Total

128,308

65,915

214,486

135,266

342,793

201,181

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 Company has an interest multiplied by the working interest owned by the Company.

CORPORATE RESERVES

The reserves data set forth below is based upon an independent reserve assessment and evaluation
prepared by GLJ dated November 15, 2012 with an effective date of September 30, 2012 (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 Canadian Oil and Gas Evaluation Handbook (the "COGE
Handbook") and the reserve definitions contained in NI 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 96% in fiscal 2012 to 27,449 Mboe.
Proved reserves increased by 40% to 10,821 Mboe and comprised 39% of the Company’s total proved plus
probable reserves. Proved undeveloped reserves are 54% of the total proved reserves. The future capital
in the GLJ Report (undiscounted) is $284.3 million for the proved and probable reserves and is $99.5 million
for total proved reserves.

The following table provides summary reserve information based upon the GLJ Report and using the
published GLJ (October 1, 2012) 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

281

218

 

96

81

 

577

422

 

  Non-producing

1

1

 

-

-

 

180

137

 

  Undeveloped

114

89

 

-

-

 

1,625

1,238

 

Total proved

396

307

 

96

81

 

2,382

1,797

 

Probable

527

426

 

28

24

 

5,441

4,057

 

Total proved & probable

922

733

 

124

105

 

7,823

5,855

 
                     
   

Natural Gas

 

Total Barrels of Oil Equivalent (3)

   

Company Interest (1)

Net (2)

 

Company Interest (1)

Net (2)

   

(Mmcf)

(Mmcf)

 

(Mboe)

(Mboe)

             

  Proved producing

 

19,978

18,030

 

4,284

3,726

  Non-producing

 

2,865

2,514

 

658

557

  Undeveloped

 

24,841

22,075

 

5,879

5,006

Total proved

 

47,684

42,618

 

10,821

9,289

Probable

 

63,793

57,297

 

16,628

14,056

Total proved & probable

 

111,477

99,916

 

27,449

23,345

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) 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. Given the value ratio based on the current price of crude oil as compared
to natural gas is significantly different from the energy equivalency of 6 mcf: 1 bbl, utilizing a conversion ratio of 6 mcf: 1 bbl
may be a misleading indication of value.
(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, 2012 and based on the published GLJ (October 1, 2012) future price forecast are
summarized in the following table:

 

Discounted at

 

Undiscounted

 

5%

 

10%

 

15%

 

20%

(M$)

                   
                     

  Proved producing

 

92,196

 

69,051

 

55,308

 

46,322

 

40,024

  Non-producing

 

15,333

 

11,276

 

8,850

 

7,261

 

6,143

  Undeveloped

 

97,109

 

48,826

 

23,558

 

9,042

 

112

Total proved

 

204,638

 

129,153

 

87,716

 

62,626

 

46,280

Probable

 

464,657

 

227,455

 

128,708

 

79,121

 

50,802

Total proved plus probable

 

669,294

 

356,608

 

216,424

 

141,747

 

97,082

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.

The following table sets forth development costs deducted in the estimation of the future net revenue
attributable to the reserve categories noted below.

 

Forecast Prices and Costs

 

Proved Reserves

Proved Plus Probable Reserves

Year

(M$)

(M$)

2012

2,467

2,467

2013

31,558

61,026

2014

53,617

90,880

2015

11,867

47,812

2016

-

51,632

2017

-

30,197

2018

-

-

2019

-

126

2020

 

-

2021

-

-

Remainder

-

196

Total Undiscounted (all years)

99,509

284,335

Total discounted 10%

86,330

228,382

 

Price Forecast

The GLJ October 1, 2012 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)

2012 Q4

1.00

92.50

90.50

66.78

2.92

2.72

2013

0.98

92.50

92.35

69.00

3.44

3.24

2014

0.98

95.00

95.92

72.57

3.90

3.70

2015

0.98

97.50

98.47

74.53

4.36

4.16

2016

0.98

100.00

101.02

76.48

4.82

4.62

2017

0.98

100.00

101.02

76.48

5.05

4.85

2018

0.98

101.35

102.40

77.54

5.43

5.23

2019

0.98

103.38

104.47

79.13

5.54

5.34

2020

0.98

105.45

106.58

80.75

5.65

5.45

2021

0.98

107.56

108.73

82.40

5.76

5.56

 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

The following table compares the GLJ October 1, 2012 price forecast with the GLJ October 1, 2011 price
forecast.

 

AECO Spot Gas $/Mmbtu

 

Edmonton Light Sweet Crude $/Bbl

Year

October 1, 2012

October 1, 2011

Variance %

 

October 1, 2012

October 1, 2011

Variance %

2012 Q4

2.92

3.90

(25.1)

 

90.50

91.84

(1.5)

2013

3.44

4.36

(21.1)

 

92.35

94.39

(2.2)

2014

3.90

4.59

(15.0)

 

95.92

96.94

(1.1)

2015

4.36

5.05

(13.7)

 

98.47

102.02

(2.5)

2016

4.82

5.51

(12.5)

 

101.02

101.02

(-)

2017

5.05

5.97

(15.4)

 

101.02

102.41

(1.4)

2018

5.43

6.43

(15.6)

 

102.40

104.47

(2.0)

Capital Program Efficiency

The efficiency of the Company’s capital program for the fiscal year ended September 30, 2012 is summarized below.

 

2012

2011 (5)

Three Year Average

2010 - 2012

   

Proved

 

Proved

 

Proved

   

plus

 

plus

 

plus

 

Proved

Probable

Proved

Probable

Proved

Probable

Exploration and development expenditures

   

($ thousands) 

33,615

33,615

35,030

35,030

91,440

91,440

Net acquisitions ($ thousands) (2)  

593

593

(810)

(810)

20,940

20,940

Change in future development capital - exploration and development ($thousands)

57,431

197,606

31,667

61,730

97,007

276,897

Total

91,639

231,814

65,887

95,950

209,387

389,277

Reserves additions after revisions (Mboe) (4)

     

     - Exploration and development

3,780

14,025

2,916

6,106

8,581

23,121

     - Revisions

110

116

(16)

(277)

334

(36)

     - Net acquisitions

25

82

(18)

(23)

802

1,324

     - Total reserve additions after revisions

3,915

14,223

2,882

5,806

9,717

24,409

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

23.40

16.35

23.00

16.60

21.14

15.96

             

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

23.41

16.30

22.86

16.52

21.55

15.95

             

Reserves Replacement Ratio

484%

1,760%

319%

643%

383%

961%


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) 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 IFRS.
(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 than finding and development
costs alone.
(4) 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. Given the value ratio based on the current price of crude oil as compared
to natural gas is significantly different from the energy equivalency of 6 mcf: 1 bbl, utilizing a conversion ratio of 6 mcf: 1 bbl
may be a misleading indication of value.
(5) Exploration and development expenditures for 2011 have been adjusted from previous year’s disclosure to comply with IFRS.

Net Asset Value

The following table provides a calculation of Yoho’s estimated net asset value and net asset value per
share as at September 30, 3012 based on the estimated future net revenues associated with Yoho’s proved
plus probable reserves discounted at 10% as presented in the GLJ Report. The values in this table do not
include the net present value assigned to either of the Company’s Contingent Resource Reports.

Forecast Prices and Costs before tax

($ thousands)

Proved plus probable reserves – discounted at 10%

216,424

Undeveloped land (1)

75,400

Bank debt and working capital deficiency as at September 30, 2012 (2)

(18,506)

Net asset value

273,318

Common shares outstanding at September 30, 2012 (thousands) - Basic

50,332

Net asset value per share - basic

$    5.43    

Net asset value per share  - basic (excluding land value)

$    3.93


Notes:
(1) Internally estimated value (see “Land Holdings”).
(2) 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, 2012.

 RESOURCE AND RESERVES EVALUATION FOR KAYBOB DUVERNAY

GLJ was engaged to prepare an independent evaluation report of Yoho’s reserves and contingent
resources at Kaybob, Alberta effective as at September 30, 2012 (the "GLJ Kaybob Report"). The GLJ
Kaybob Report is dated November 15, 2012 and was prepared in accordance with NI 51-101 and the
COGE Handbook. The GLJ Kaybob Report is the first independent assessment prepared for Yoho for the
Duvernay at Kaybob and evaluated 100% of Yoho’s acreage at Kaybob.

Resource Evaluation

Summary of Company Duvernay Contingent Resources (1)(2)(3)(4)(5)
Forecast Prices and Costs
As at September 30, 2012

 

Natural Gas

 

Natural Gas Liquids

 

BOE

 

(MMcf)

 

(Mbbl)

 

(MBoe)

Low Estimate (5)

133,616

 

14,090

 

36,360

Best Estimate (5)

162,576

 

20,226

 

47,322

High Estimate (5)

244,035

 

36,406

 

77,079


Notes:
(1) Yoho’s total working interest contingent resources are before deducting royalties owned by others.
(2) 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. Given the value ratio based on the current price of crude oil as compared
to natural gas is significantly different from the energy equivalency of 6 mcf: 1 bbl, utilizing a conversion ratio of 6 mcf: 1 bbl
may be a misleading indication of value.
(3) The estimates of contingent resources for individual properties may not reflect the same confidence level as estimates of net
present values for all properties, due to the effects of aggregation.
(4) May not add due to rounding.
(5) See note on probabilities under “Special Note Regarding Disclosure of Reserves or Resources” below.

Summary of Company Duvernay Contingent Resources Net Present Values of Future Revenue (1)(2)(3)(4)(5)(6)
Forecast Prices and Costs
Before Income Taxes ($ thousands) as at September 30, 2012

 

Discounted at

 
 

Undiscounted

 

5%

10%

15%

 

20%

 
                     

Low Estimate (6)

 

731,676

 

263,852

 

83,496

 

7,620

 

(25,697)

Best Estimate (6)

 

1,485,280

 

572,114

 

255,051

 

121,522

 

57,984

High Estimate (6)

 

3,273,672

 

1,328,367

 

680,485

 

395,949

 

248,553

 

Notes:
(1) The estimated future net revenues are stated before deducting income taxes and future estimated site restoration costs, and
are reduced for estimated future abandonment costs and estimated capital for future development associated with the
contingent resource.
(2) It should not be assumed that the undiscounted and discounted net present values represent the fair market value of the
contingent resource.
(3) The estimates of net present values for individual properties may not reflect the same confidence level as estimates of net
present values for all properties, due to the effects of aggregation.
(4) Based on GLJ’s price deck dated October 1, 2012.
(5) Numbers in this table are subject to rounding error.
(6) See note on probabilities under “Special Note Regarding Disclosure of Reserves or Resources” below.

Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially
recoverable from known accumulations using established technology or technology under development, but
which are not currently considered to be commercially recoverable due to one or more contingencies.
Contingencies which must be overcome to enable the reclassification of contingent resources as reserves
can be categorized as economic, non-technical and technical. The COGE Handbook identifies nontechnical
contingencies as legal, environmental, political and regulatory matters or a lack of markets. There
are several non-technical contingencies that prevent the classification of the contingent resources estimated
above as being classified as reserves. The primary contingency which prevents the classification of Yoho's
contingent resources as reserves is the current early stage of development. Additional drilling, completion,
and testing data is generally required before Yoho can commit to their development. It is also appropriate
to classify as contingent resources the estimated discovered recoverable quantities associated with a
project in the early evaluation stage. As additional drilling takes place, it is expected that the contingent
resources will be booked into the reserves category. Estimates of contingent resources described herein
are estimates only; the actual resources may be higher or lower than those calculated in the GLJ Kaybob
Report. There is no certainty that it will be commercially viable to produce any portion of the
resources described in the evaluation.

The most significant positive and negative factors with respect to the contingent resource estimates relate
to the fact that the field is currently at an evaluation/delineation stage. Resource-in-place, productivity and
capital costs may be higher or lower than current estimates. Additional drilling and testing are required to
confirm volumetric estimates and reservoir productivity for the contingent resources to be reclassified as
reserves.

Reserves Evaluation

After the recent drilling success at Kaybob, the Company’s working interest of total proved plus probable
reserves for the Duvernay at Kaybob as at September 30, 2012 is estimated by GLJ to be 15.0 MMboe. As
at September 30, 2011, a total of 2.6 MMboe of proved plus probable reserves were assigned to the
Duvernay at Kaybob. The reserves evaluation incorporates approximately 23% of Yoho’s land base at
Kaybob, Alberta.

Summary of Kaybob Duvernay Company Working Interest Reserves (1) (2) (3) (4) (5)
Forecast Prices and Costs
As at September 30, 2012

 

Natural Gas

 

Natural Gas Liquids

 

BOE Total Barrels of Oil Equivalent

 
 

(MMcf)

 

(Mbbl)

 

(MBoe)

   

Proved producing

1,377

 

155

 

385

   

Total proved

13,902

 

1,606

 

3,923

   

Total probable

37,554

 

4,856

 

11,115

   

Total proved plus probable

51,456

 

6,462

 

15,038

   


Notes:
(1) Yoho’s total working interest means Yoho's working interest (operated and non-operated) share before deducting royalties and
including any royalty interests 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. 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. Given the value ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency of 6 mcf: 1 bbl, utilizing a conversion ratio of 6 mcf: 1 bbl may
be a misleading indication of value.
(3) The estimates of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all
properties, due to the effects of aggregation.
(4) Includes non-associated gas, associated gas and solution gas.
(5) Numbers in this table are subject to rounding error. Summary of Kaybob Duvernay Company Net Present Value of Future Revenue from Reserves

Summary of Kaybob Duvernay Company Net Present Value of Future Revenue from Reserves (1) (2) (3) (4) (5)
Forecast Prices and Costs

Before Income Taxes ($ thousands)

 

As at September 30, 2012

 

Discounted at

 

Undiscounted

 

5%

 

10%

Total proved

87,039

 

49,887

 

30,298

Total probable

341,811

 

165,516

 

93,740

Total proved plus probable

428,820

 

215,403

 

124,038

Notes:

(1) The estimated future net revenues are stated before deducting income taxes and future estimated site restoration costs, and
are reduced for estimated future abandonment costs and estimated capital for future development associated with the
reserves.
(2) It should not be assumed that the undiscounted and discounted net present values represent the fair market value of the
reserves.
(3) The estimates of net present values for individual properties may not reflect the same confidence level as estimates of net
present values for all properties, due to the effects of aggregation.
(4) Based on GLJ’s price deck dated October 1, 2012.
(5) Numbers in this table are subject to rounding error.

RESOURCE AND RESERVES EVALUATION FOR NIG MONTNEY

GLJ was engaged to prepare an independent evaluation report of Yoho’s reserves and contingent
resources at Nig, British Columbia effective as at September 30, 2012 (the "GLJ Nig Report"). The GLJ Nig
Report is dated November 15, 2012 and was prepared in accordance with NI 51-101 and the COGE
Handbook. The GLJ Nig Report is an update to the report previously prepared by GLJ which evaluated
approximately 55% of Yoho’s acreage at Nig. As a result of recent drilling activity during fiscal 2012, GLJ
has now been able to evaluate a total of 82% of the Company’s acreage at Nig.

Nig Montney
Resource Evaluation
Summary of Company Montney Contingent Resources (1)(2)(3)(4)(5)
Forecast Prices and Costs
As at September 30, 2012

 

Natural Gas

 

Natural Gas Liquids

 

BOE

 

(MMcf)

 

(Mbbl)

 

(MBoe)

Low Estimate (5)

206,212

 

6,415

 

40,784

Best Estimate (5)

266,364

 

8,287

 

52,681

High Estimate (5)

324,948

 

10,109

 

64,267

Notes:
(1) Yoho’s total working interest contingent resources are before deducting royalties owned by others.
(2) 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. Given the value ratio based on the current price of crude oil as compared
to natural gas is significantly different from the energy equivalency of 6 mcf: 1 bbl, utilizing a conversion ratio of 6 mcf: 1 bbl
may be a misleading indication of value.
(3) The estimates of contingent resources for individual properties may not reflect the same confidence level as estimates of net
present values for all properties, due to the effects of aggregation.
(4) May not add due to rounding.
(5) See note on probabilities under “Special Note Regarding Disclosure of Reserves or Resources” below.

Summary of Company Montney Contingent Resources Net Present Values of Future Revenue (1)(2)(3)(4)(5)(6)
Forecast Prices and Costs
Before Income Taxes ($ thousands) as at September 30, 2012

 

Discounted at

 
 

Undiscounted

 

5%

10%

15%

 

20%

 
                     

Low Estimate (6)

 

836,704

 

320,526

 

133,858

 

57,911

 

24,112

Best Estimate (6)

 

1,317,426

 

470,152

 

194,961

 

88,474

 

41,674

High Estimate (6)

 

1,806,191

 

615,225

 

256,833

 

121,633

 

61,994

                           

Notes:

(1) The estimated future net revenues are stated before deducting income taxes and future estimated site restoration costs, and
are reduced for estimated future abandonment costs and estimated capital for future development associated with the
contingent resource.
(2) It should not be assumed that the undiscounted and discounted net present values represent the fair market value of the
contingent resource.
(3) The estimates of net present values for individual properties may not reflect the same confidence level as estimates of net
present values for all properties, due to the effects of aggregation.
(4) Based on GLJ’s price deck dated October 1, 2012.
(5) Numbers in this table are subject to rounding error.
(6) See note on probabilities under “Special Note Regarding Disclosure of Reserves or Resources” below.

Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially
recoverable from known accumulations using established technology or technology under development, but
which are not currently considered to be commercially recoverable due to one or more contingencies.
Contingencies which must be overcome to enable the reclassification of contingent resources as reserves
can be categorized as economic, non-technical and technical. The COGE Handbook identifies nontechnical
contingencies as legal, environmental, political and regulatory matters or a lack of markets. There
are several non-technical contingencies that prevent the classification of the contingent resources estimated
above as being classified as reserves. The primary contingency which prevents the classification of Yoho's
contingent resources as reserves at Nig is the current early stage of development. Additional drilling,
completion, and testing data is generally required before Yoho can commit to their development. As
additional drilling and/or development takes place, it is expected that some or all of the contingent
resources will be booked as reserves. Additional drilling and testing are required to confirm volumetric
estimates and reservoir productivity for the contingent resources to be reclassified as reserves. It is also
appropriate to classify as contingent resources the estimated discovered recoverable quantities associated
with a project in the early evaluation stage. As additional drilling takes place, it is expected that the
contingent resources will be booked into the reserves category. The most significant positive and negative
factors with respect to the contingent resource estimates at Nig relate to the fact that the field is currently at
an evaluation/delineation stage. At Nig, the Montney formation is areally extensive in this region; however,
well control in certain areas of Yoho’s lands is limited. As well, the resource evaluation includes the Upper
Montney only and does not include an assessment of the Lower Montney which the Company considers
prospective over its land base. Resource-in-place, productivity and capital costs may be higher or lower
than current estimates. There is no certainty that it will be commercially viable to produce any
portion of the resources described in the evaluation.

Reserves Evaluation

After the recent drilling success at Nig, the Company’s interest of total proved plus probable reserves for the
Montney at Nig as at September 30, 2012 is estimated by GLJ to be 4.9 MMboe. As at September 30,
2011, a total of 3.4 MMboe of proved plus probable reserves were assigned to the Montney at Nig. The
reserves evaluation incorporates approximately 6% of Yoho’s land base at Nig, British Columbia.

Summary of Nig Montney Company Working Interest Reserves (1) (2) (3) (4) (5)
Forecast Prices and Costs
As at September 30, 2012

 

Natural Gas

 

Natural Gas Liquids

 

BOE Total Barrels of Oil Equivalent

 
 

(MMcf)

 

(Mbbl)

 

(MBoe)

   

Proved producing

2,645

 

96

 

536

   

Total proved

11,522

 

372

 

2,292

   

Total probable

13,286

 

418

 

2,632

   

Total proved plus probable

24,808

 

790

 

4,924

   

Notes:
(1) Yoho’s total working interest means Yoho's working interest (operated and non-operated) share before deducting royalties and
including any royalty interests 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. 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. Given the value ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency of 6 mcf: 1 bbl, utilizing a conversion ratio of 6 mcf: 1 bbl may
be a misleading indication of value.
(3) The estimates of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all
properties, due to the effects of aggregation.
(4) Includes non-associated gas, associated gas and solution gas.
(5) Numbers in this table are subject to rounding error.

Summary of Nig Montney Company Net Present Value of Future Revenue from Reserves (1) (2) (3) (4) (5)
Forecast Prices and Costs
Before Income Taxes ($ thousands)

 

As at September 30, 2012

 

Discounted at

 

Undiscounted

 

5%

 

10%

Total proved

33,450

 

18,711

 

10,851

Total probable

53,600

 

24,372

 

12,159

Total proved plus probable

87,050

 

43,083

 

23,010


Notes:
(1) The estimated future net revenues are stated before deducting income taxes and future estimated site restoration costs, and
are reduced for estimated future abandonment costs and estimated capital for future development associated with the
reserves.
(2) It should not be assumed that the undiscounted and discounted net present values represent the fair market value of the
reserves.
(3) The estimates of net present values for individual properties may not reflect the same confidence level as estimates of net
present values for all properties, due to the effects of aggregation.
(4) Based on GLJ’s price deck dated October 1, 2012.
(5) Numbers in this table are subject to rounding error.

OUTLOOK

For fiscal 2013, Yoho is currently planning a total capital program of between $35.0 and $38.0 million. The
exploration program and related capital budget is weighted to drilling the two unconventional plays at
Kaybob and Nig, with the majority of the capital allocated to the Duvernay at Kaybob. Yoho’s fiscal 2013
budget assumes an oil price of $90.00 per barrel at Edmonton and a posted gas price of $2.82 per GJ at
AECO. It is estimated that overall production for fiscal 2013 will average approximately 3,100 to 3,200 boe
per day with exit production estimated at 3,400 to 3,500 boe per day. Activity levels for fiscal 2013 will
continue to be monitored to align capital expenditures with expected cash flow and available credit lines.

About Yoho

Yoho Resources Inc. is a Calgary based junior oil and natural gas company with operations focusing in
West Central 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

Special Note Regarding Forward-Looking Information

This news release contains certain forward-looking statements, which are based on numerous assumptions including but not limited
to (i) drilling success; (ii) production; (iii) future capital expenditures; (iv) net present values of future net revenues; and (v) cash
flow from operating activities. The reader is cautioned that assumptions used in the preparation of such information may prove to
be incorrect.

With respect to forward-looking statements contained in this document, Yoho has made a number of assumptions. The key
assumptions underlying the aforementioned forward-looking statements include assumptions that: (i) commodity prices will be
volatile throughout calendar 2012 and 2013; (ii) capital, undeveloped lands and skilled personnel will continue to be available at
the level Yoho has enjoyed to date; (iii) Yoho will be able to obtain equipment in a timely manner to carry out exploration,
development and exploitation activities; (iv) production rates for fiscal 2013 are expected to show growth from fiscal 2012; (v)
Yoho will have sufficient financial resources with which to conduct the capital program; and (vi) the current tax and regulatory
regime will remain substantially unchanged. Certain or all of the forgoing assumptions may prove to be untrue.

Certain information regarding Yoho set forth in this document, including estimates of the quantities of the Company's proved
reserves, probable reserves, contingent resources, estimates of the net present value of future net revenue of the estimates of the
Company's proved reserves, and probable reserves and contingent resources and expected operating activities in the Kaybob –
Duvernay and Nig Montney areas, may constitute forward-looking statements under applicable securities laws and necessarily
involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks
and uncertainties, certain of which are beyond Yoho's control, including without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices,
environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and
facility costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain
required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general
economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the
adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition,
the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and stock market
volatility and market valuations of companies with respect to announced transactions and the final valuations thereof. Readers are
cautioned that the foregoing list of factors is not exhaustive.

Yoho's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forwardlooking
statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will
derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by these cautionary statements. Additional information on these and
other factors that could affect Yoho’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Yoho’s website
(www.yohoresources.ca).

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

Special Note Regarding Disclosure of Reserves and Resources

Contingent resources is defined in the COGE Handbook as those quantities of petroleum estimated, as of a given date, to be
potentially recoverable from known accumulations using established technology or technology under development, but which are
not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors
such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as
contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage.
Contingent resources are further classified in accordance with the level of certainty associated with the estimates and may be
subclassified based on project maturity and/or characterized by their economic status.

The contingent resources estimates herein, including the corresponding estimates of before tax present value estimates, are
estimates only and the actual results may be greater than or less than the estimates provided herein. There is no certainty that it
will be commercially viable or technically feasible to produce any portion of the resources.

Probability

"Low Estimate" is a classification of estimated resources described in the COGE Handbook as being considered to be a
conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will
exceed the Low Estimate. If probabilistic methods are used, there should be a 90% probability (P90) that the quantities actually
recovered will equal or exceed the Low Estimate. "Best Estimate" is a classification of estimated resources described in the COGE
Handbook as being considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the
actual remaining quantities recovered will be greater or less than the Best Estimate. If probabilistic methods are used, there should
be a 50% probability (P50) that the quantities actually recovered will equal or exceed the Best Estimate. "High Estimate" is a
classification of estimated resources described in the COGE Handbook as being considered to be an optimistic estimate of the
quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the High Estimate.
If probabilistic methods are used, there should be a 10% probability (P10) that the quantities actually recovered will equal or
exceed the High Estimate.

BOE Equivalency

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. Given the value ratio based on the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6 mcf: 1 bbl, utilizing a conversion ratio of 6 mcf: 1 bbl may be a misleading
indication of value.

Internal estimates

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

Oil and Gas Advisory

The reserves information contained in this press release has been prepared in accordance with NI 51-101. Complete NI 51- 101
reserves disclosure will be included in our Annual Information Form for the year ended September 30, 2012. Listed below are
cautionary statements applicable to our reserves information that are specifically required by NI 51-101:

  • 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.