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Last updated on April 24, 2014 at 21:24 EDT

Madalena Announces an Independent Evaluation of its Unconventional Shale Resources with an Estimated 34.8 Billion Barrels of Oil Equivalent (“boe”) of Petroleum Initially in Place

April 30, 2013

CALGARY, Alberta, April 30, 2013 /PRNewswire/ –

Madalena Ventures Inc. (TSXV: MVN) (the “Company” or “Madalena”) is pleased to provide
information on the Company’s unconventional shale resources on its three land blocks
within the Neuquen basin, Argentina.

These resources were evaluated by Ryder Scott Petroleum Consultants Ltd. (“Ryder
Scott”) in a report dated effective December 31, 2012 (the “Resource Report”). All of the
Company’s international properties, which are located within the Neuquen basin, Argentina,
were reviewed in the Resource Report although not all of the potential resources and
formations were evaluated. All values disclosed herein are net to Madalena’s interest.

Highlights

        - Madalena holds 135,000 net acres on the Coiron Amargo (35,027 net acres),
          Curamhuele (50,400 net acres) and Cortadera (49,600 net acres) blocks within the
          Neuquen basin, respectively;
        - The main zones of interest for the independent resource evaluation focused on
          the Vaca Muerta shale, Lower Agrio shale and Basal Quintuco with the evaluated
          resources based on data from 19 delineation and discovery wells on the blocks, 3D or
          2D seismic coverage and core analysis.

The following are summary results of the independent evaluation completed by Ryder
Scott for all three blocks held by Madalena. A further breakdown (by block) of the
petroleum initially in place and potential recoverable resources are shown in a series of
tables that follow.

        - Best Case P50 total petroleum initially in place ("PIIP") of 34.8 billion
          barrels of oil equivalent ("boe") (51 % crude oil and natural gas liquids ("NGLs")),
          comprised of:
             - Best Case P50 discovered PIIP ("DPIIP") of 257.4 million boe (95 % crude
             oil and NGLs); and
             - Best Case P50 undiscovered PIIP ("UPIIP") of 34.6 billion boe (50 % crude
             oil and NGLs);
        - Best case P50 contingent plus prospective recoverable resources of 2.9
          billion boe (45 % crude oil and NGLs), comprised of:
             - Best case P50 contingent recoverable resources of 19.4 million boe (95 %
             crude oil and NGLs); and
             - Best case P50 prospective recoverable resources of 2.8 billion boe (45 %
             crude oil and NGLs).

Please see the tables (and notes thereto) and narrative that follow for a detailed
break-down of the calculation of these amounts.

Disclosure of Resources

The Resource Report has been prepared in accordance with the standards contained in
the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) and National Instrument
51- 101 – Standards for Disclosure for Oil and Gas Activities of the Canadian Securities
Administrators (“NI 51-101″). The Resource Report provides a summary of the oil, liquids &
natural gas resources associated with Madalena’s assets and properties in the Neuquen
basin, Argentina as at December 31, 2012. Madalena engaged Ryder Scott to provide
evaluations of its contingent and prospective recoverable resources over all three of its
land blocks in the Neuquen basin with a focus on the Vaca Muerta shale, Lower Agrio shale
and Quintuco formations.

The Resource Report is based on certain factual data supplied by the Company and Ryder
Scott’s opinion of reasonable practice in the industry. The extent and character of
ownership and all factual data pertaining to the Corporation’s petroleum properties and
contracts (except for certain information residing in the public domain) were supplied by
the Company to the Ryder Scott and accepted without any further investigation. Ryder Scott
accepted this data as presented and neither title searches nor field inspections were
conducted. The recovery and resources estimates for Madalena’s assets and properties
described herein are estimates only and there is no guarantee that the estimated resources
will be recovered. The actual resources for Madalena’s assets and properties may be
greater or less than those calculated.

Ryder Scott has also identified certain contingencies in order to convert the
contingent recoverable resources described herein and in the Resource Report into
developed reserves. These contingencies are specific to each formation and are related to
the maturity of these projects and commercialization contingencies. There are no
commercially productive analog fields in this area of the basin to establish expected
production rates and recovery efficiencies at this time. There may be risk that
accumulations containing contingent resources may not achieve commercial production.

Summary Tables for Unconventional Shale Resources Across Three Blocks in the Neuquen
Basin

The following tables provide a summary of the findings from the Resource Report.
Please see Appendix “A” to this news release for some important definitions.

                                   Total Petroleum Initially In Place(1)
                                             (net to Madalena)
                                         Oil, NGLs and Natural Gas
                                          at December 31, 2012(2)
                      Oil & NGLs                  Natural Gas         Oil & NGLs + Natural Gas
                        (MMbbl)                      (Tcf)                    (MMboe)
                 Low     Best      High      Low     Best     High      Low     Best     High
              Estimate Estimate  Estimate Estimate Estimate Estimate Estimate Estimate Estimate
                 P90      P50       P10      P90      P50      P10      P90      P50      P10
        Lower
        Agrio
        Shale  3,835.7  4,763.4 5,834.03.8   2.777    3.955    5.443  4,298.4  5,422.5  6,741.2
        Basal
        Quintuco  46.8    108.8      184.8  16.234   22.706   29.003  2,752.4  3,893.1  5,018.6
        Vaca
        Muerta
        Shale 10,868.0 12,722.8   14,940.3  40.610   76.610  116.238 17,636.4 25,491.2 34,313.3
        Total 14,750.5 17,594.9   20,959.1  59.620  103.271  150.684 24,687.4 34,806.8 46,073.2
        Note:
        (1) "Total Petroleum Initially In Place" means DPIIP + UPIIP. When calculating
        DPIIP, there is no material production or reserves associated with these
        properties. Contingent resources is the only category of DPIIP that has been
        categorized as recoverable. Prospective resources is the only category of UPIIP
        that has been categorized as recoverable. There is no certainty that it will be
        commercially viable to produce any portion of the contingent resources referred to
        in the table above. There is no certainty that any portion of the prospective
        resources referred to in the table above will be discovered. If discovered, there
        is no certainty that it will be commercially viable to produce any portion of
        these resources.
        (2) These volumes are arithmetic sums of multiple estimates of contingent &
        prospective resources, which statistical principles indicate may be misleading as
        to volumes that may actually be recovered. Readers should give attention to the
        estimates of individual classes of resources and appreciate the differing
        probabilities of recovery associated with each class as explained herein. Details
        on the categories that comprise these calculations are in the tables that follow.

              Contingent Recoverable Resources(1) Plus Prospective Recoverable Resources(2)
                                            (net to Madalena)
                                        Oil, NGLs and Natural Gas
                                         at December 31, 2012(3)
                       Oil & NGLs                Natural Gas          Oil & NGLs + Natural Gas
                        (MMbbl)                     (Tcf)                     (MMboe)
                Low      Best     High     Low      Best     High     Low      Best     High
              Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
                P90      P50      P10      P90      P50      P10      P90      P50      P10
        Lower
        Agrio
        Shale   86.2    328.7     596.2    0.070    0.267    0.524     97.9    373.1    683.5
        Basal
        Quintuco 5.6     14.0      27.2    1.745    2.932    4.569    296.5    502.6    788.7
        Vaca
        Muerta
        Shale  309.6    950.2   1,642.8    2.662    9.251   17.426    753.2  1,986.1  3,751.6
        Total  401.4  1,293.0   2,266.2    4.477   12.449   22.519  1,147.5  2,861.9  5,223.8

        Note:
        (1) There is no material production or reserves associated with these
        properties. Contingent resources is the only category of DPIIP that has been
        categorized as recoverable. There is no certainty that it will be commercially
        viable to produce any portion of the contingent resources referred to in the
        table above.
        (2) Prospective resources is the only category of UPIIP that has been
        categorized as recoverable. There is no certainty that any portion of the
        prospective resources referred to in the table above will be discovered. If
        discovered, there is no certainty that it will be commercially viable to produce
        any portion of these resources.
        (3) These volumes are arithmetic sums of multiple estimates of contingent and
        prospective resources, which statistical principles indicate may be misleading
        as to volumes that may actually be recovered. Readers should give attention to
        the estimates of individual classes of resources and appreciate the differing
        probabilities of recovery associated with each class as explained herein.
        Details on the categories that comprise this calculation are in the tables that
        follow.

Block by Block Breakdown of the Company’s Unconventional Shale Resources at Coiron
Amargo, Curamhuele and Cortadera

Block #1: Coiron Amargo

A significant amount of seismic and well data from the Coiron Amargo block was
provided to Ryder Scott for their evaluation. This included 311 sq. km. of 3D seismic
covering approximately 77% of the block and 2D seismic covering the remainder. Wellbore
data provided was geological and petrophysical logs from a total of 15 wells, including
logs from 11 recently drilled wells and a full core through the Vaca Muerta from one
recent well. Geochemical analysis for total organic content and kerogen type was provided
from samples taken from six wells. On the block, four wells have demonstrated oil
production from the Vaca Muerta shale, of which two of these wells have booked reserves.

At Coiron Amargo, Madalena has an estimated 3.1 billion boe (95% oil) of Best Case P50
TPIIP and best case contingent plus prospective recoverable resources of over 280 million
boe (95% oil). The following tables provide a summary of the Company’s net resources on
its Coiron Amargo block:

                                              Coiron Amargo
                               Discovered Petroleum Initially In Place (1)
                                            (net to Madalena)
                                        Oil, NGLs and Natural Gas
                                           at December 31, 2012
                     Oil & NGLs                Natural Gas           Oil & NGLs + Natural Gas
                      (MMbbl)                     (Tcf)                       (MMboe)
               Low     Best     High       Low     Best     High       Low     Best     High
            Estimate Estimate Estimate  Estimate Estimate Estimate  Estimate Estimate Estimate
               P90      P50      P10       P90      P50      P10       P90      P50      P10
        Vaca
        Muerta
        Shale 242.6    244.4    246.2     0.077    0.077    0.078      255.4   257.4    259.2
        Note:
        (1) When calculating DPIIP, there is no material production or reserves
        associated with these properties. All DPIIP, other than contingent resources,
        has been categorized as unrecoverable. There is no certainty that it will be
        commercially viable to produce any portion of the resources referred to in the
        table above.
        (2) These volumes are arithmetic sums of multiple estimates, which statistical
        principles indicate may be misleading as to volumes that may actually be
        recovered. Readers should give attention to the estimates of individual classes
        of resources and appreciate the differing probabilities of recovery associated
        with each class as explained herein.

                                              Coiron Amargo
                                   Contingent Recoverable Resources(1)
                                            (net to Madalena)
                                        Oil, NGLs and Natural Gas
                                           at December 31, 2012
                     Oil & NGLs                Natural Gas           Oil & NGLs + Natural Gas
                      (MMbbl)                     (Tcf)                       (MMboe)
               Low      Best     High      Low     Best     High       Low     Best     High
            Estimate Estimate Estimate  Estimate Estimate Estimate  Estimate Estimate Estimate
               P90      P50      P10       P90      P50      P10       P90      P50      P10
        Vaca
        Muerta
        Shale  5.8      18.3     30.6     0.002    0.006     0.01      6.1      19.3     32.2

                                                  Notes:
               (1) There is no certainty that it will be commercially viable to produce any
                         portion of the resources referred to in the table above.

                                             Coiron Amargo
                             Undiscovered Petroleum Initially In Place (1)
                                           (net to Madalena)
                                       Oil, NGLs and Natural Gas
                                         at December 31, 2012
                       Oil & NGLs                Natural Gas          Oil & NGLs + Natural Gas
                        (MMbbl)                     (Tcf)                     (MMboe)
                 Low      Best     High     Low      Best     High     Low      Best     High
               Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
                 P90      P50      P10      P90      P50      P10      P90      P50      P10
        Vaca
        Muerta
        Shale  2,687.8  2,717.5  2,747.5   0.851    0.861    0.870   2,829.7  2,860.9  2,892.5

        Notes:
        (1) Prospective resources is the only category of UPIIP that has been
        categorized as recoverable. There is no certainty that any portion of the
        resources referred to in the table above will be discovered. If discovered,
        there is no certainty that it will be commercially viable to produce any
        portion of these resources.
        (2) These volumes are arithmetic sums of multiple estimates, which statistical
        principles indicate may be misleading as to volumes that may actually be
        recovered. Readers should give attention to the estimates of individual
        classes of resources and appreciate the differing probabilities of recovery
        associated with each class as explained herein.

                                             Coiron Amargo
                                 Prospective Recoverable Resources(1)
                                           (net to Madalena)
                                       Oil, NGLs and Natural Gas
                                         at December 31, 2012
                       Oil & NGLs                Natural Gas          Oil & NGLs + Natural Gas
                        (MMbbl)                     (Tcf)                     (MMboe)
                 Low      Best     High     Low      Best     High     Low      Best     High
               Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
                 P90      P50      P10      P90      P50      P10      P90      P50      P10
        Vaca
        Muerta
        Shale   122.7    249.7    377.2    0.039    0.079    0.119    129.2    262.9    397.1

Notes:

(1) Prospective resources is the only category of UPIIP that has been categorized as
recoverable. There is no certainty that any portion of the resources referred to in the
table above will be discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of these resources.

Block #2: Curamhuele

A moderate amount of seismic and well data from the Curamhuele block was provided to
Ryder Scott for their evaluation. This included 100 sq. km. of 3D seismic covering
approximately 44% of the block and 2D seismic covering the remainder. Wellbore data
provided was geological and petrophysical logs from two recent wells. Geochemical analysis
for total organic content and kerogen type was provided from samples taken from two wells
and outcrop samples from the Lower Agrio and Vaca Muerta formations. On the block, two
wells have demonstrated oil production from the Lower Agrio shale.

At Curamhuele, Madalena has over 23.7 billion boe (61% oil) of Best Case P50 TPIIP and
best case contingent plus prospective recoverable resources of over 1.5 billion boe (65%
oil). The following tables provide a summary of the Company’s net resources on its
Curamhuele block:

                                              Curamhuele
                             Undiscovered Petroleum Initially In Place (1)
                                           (net to Madalena)
                                       Oil, NGLs and Natural Gas
                                         at December 31, 2012
                       Oil & NGLs                Natural Gas          Oil & NGLs + Natural Gas
                        (MMbbl)                     (Tcf)                     (MMboe)
                 Low      Best     High     Low      Best     High     Low      Best     High
               Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
                 P90      P50      P10      P90      P50      P10      P90      P50      P10
        Lower
        Agrio
        Shale  3,835.7  4,763.4   5,834.0   2.777    3.955    5.443   4,298.4  5,422.5  6,741.2
        Vaca
        Muerta
        Shale  7,884.8  9,642.9  11,762.2  17.405   52.017   90.208  10,785.7 18,312.3 26,796.9
        Total 11,720.5 14,406.2  17,596.2  20.182   55.971   95.651  15,084.2 23,734.8 33,538.1
        Notes:
        (1) Prospective resources is the only category of UPIIP that has been
        categorized as recoverable. There is no certainty that any portion of the
        resources referred to in the table above will be discovered. If discovered,
        there is no certainty that it will be commercially viable to produce any
        portion of these resources.
        (2) These volumes are arithmetic sums of multiple estimates, which statistical
        principles indicate may be misleading as to volumes that may actually be
        recovered. Readers should give attention to the estimates of individual
        classes of resources and appreciate the differing probabilities of recovery
        associated with each class as explained herein.

                                              Curamhuele
                                 Prospective Recoverable Resources(1)
                                           (net to Madalena)
                                       Oil, NGLs and Natural Gas
                                         at December 31, 2012
                       Oil & NGLs                Natural Gas          Oil & NGLs + Natural Gas
                        (MMbbl)                     (Tcf)                     (MMboe)
                 Low      Best     High     Low      Best     High     Low      Best     High
               Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate
                 P90      P50      P10      P90      P50      P10      P90      P50      P10
        Lower
        Agrio
        Shale    86.1    328.6     596.2   0.070    0.266    0.524     97.8     373.0    683.5
        Vaca
        Muerta
        Shale   174.7    667.4   1,207.4   0.663    2.942    8.096    285.2   1,157.6  2,556.7
        Total   260.8    996.0   1,803.6   0.733    3.208    8.620    382.9   1,530.6  3,240.2

        Notes:

        (1) There is no certainty that any portion of the resources referred to in the table
        above will be discovered. If discovered, there is no certainty that it will be
        commercially viable to produce any portion of these resources.

Block #3: Cortadera

A moderate amount of seismic and well data from the Cortadera block was provided to
Ryder Scott for their evaluation. This included 118 sq. km. of 3D seismic covering
approximately 24% of the block. Wellbore data provided was geological and petrophysical
logs from two recent wells. Geochemical analysis for total organic content and kerogen
type was provided from samples taken from one well. On the block, two wells have
demonstrated natural gas production from tests in the Vaca Muerta shale.

At Cortadera, Madalena has over 7.9 billion boe (97% gas) of Best Case P50 TPIIP and
best case contingent plus prospective recoverable resources of over 1 billion boe (97%
gas). The following table provides a summary of the Company’s net resources on its
Cortadera block:

                                                 Cortadera
                                Undiscovered Petroleum Initially In Place(1)
                                             (net to Madalena)
                                         Oil, NGLs and Natural Gas
                                            at December 31, 2012
                      Oil & NGLs                Natural Gas           Oil & NGLs + Natural Gas
                       (MMbbl)                     (Tcf)                       (MMboe)
                 Low     Best     High      Low     Best     High       Low     Best     High
              Estimate Estimate Estimate Estimate Estimate Estimate  Estimate Estimate Estimate
                 P90      P50      P10      P90      P50      P10       P90      P50      P10
        Basal
        Quintuco 46.8   108.8    184.8    16.234   22.706   29.003    2,752.4  3,893.1  5,018.6
        Vaca
        Muerta
        Shale    52.8   118.0    184.4    22.277   23.656   25.082    3,765.6  4,060.6  4,364.7
        Total    99.6   226.8    369.2    38.510   46.362   54.085    6,518.0  7,953.7  9,383.3
        Notes:
        (1) Prospective resources is the only category of UPIIP that has been categorized
        as recoverable. There is no certainty that any portion of the resources referred
        to in the table above will be discovered. If discovered, there is no certainty
        that it will be commercially viable to produce any portion of these resources.
        (2) These volumes are arithmetic sums of multiple estimates, which statistical
        principles indicate may be misleading as to volumes that may actually be
        recovered. Readers should give attention to the estimates of individual classes
        of resources and appreciate the differing probabilities of recovery associated
        with each class as explained herein.
                                                 Cortadera
                                    Prospective Recoverable Resources(1)
                                             (net to Madalena)
                                         Oil, NGLs and Natural Gas
                                            at December 31, 2012
                      Oil & NGLs                 Natural Gas           Oil & NGLs + Natural Gas
                        (MMbbl)                     (Tcf)                       (MMboe)
                 Low      Best     High     Low      Best     High      Low     Best     High
              Estimate Estimate Estimate Estimate Estimate Estimate  Estimate Estimate Estimate
                 P90      P50      P10      P90      P50      P10       P90      P50      P10
        Basal
        Quintuco 5.6     14.0     27.2    1.745    2.932    4.569      296.5     502.6    788.7
        Vaca
        Muerta
        Shale    6.4     14.8     27.6    1.958    3.189    4.428      332.7     546.3    765.6
        Total   12.0     28.8     54.8    3.703    6.121    8.997      629.2   1,048.9  1,554.3

Notes:

(1) Prospective resources is the only category of UPIIP that has been categorized as
recoverable. There is no certainty that any portion of the resources referred to in the
table above will be discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of these resources.

About Madalena – Domestic and International Assets

Madalena is an independent, Canadian-based, domestic and international upstream oil
and gas company whose main business activities include exploration, development and
production of crude oil, natural gas liquids and natural gas.

Domestically, Madalena’s core area of operations is located in the Greater Paddle
River area of west-central Alberta where the company holds approximately 200 gross (>150
net) sections of land (78% average W.I.) encompassing multiple light oil and liquids-rich
gas resource plays. Madalena’s domestic focus is to exploit its large inventory of
horizontal development locations on its Ostracod oil, Notikewin/Wilrich liquids-rich gas,
and Nordegg oil & liquids-rich gas resource plays. Madalena also holds more than 100 net
sections (100% W.I.) which are prospective for the Duvernay shale.

Internationally, Madalena holds three large blocks within the prolific Neuquen basin
in Argentina where it is focused on the delineation of vast petroleum in-place shale &
unconventional resources in the Lower Agrio, Mulichinco, Quintuco and Vaca Muerta shales.
The Company is also developing a conventional oil play in the Sierras Blancas formation.

Madalena trades on the TSX Venture Exchange under the symbol MVN. Basic corporate
information, recent news releases and regularly updated corporate presentations are
available on the Company’s website at http://www.madalena-ventures.com.

Reader Advisories

The information in this news release contains certain forward-looking statements.
These statements relate to future events or our future performance. All statements other
than statements of historical fact may be forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of words such as “seek”,
“anticipate”, “plan”, “continue”, “estimate”, “approximate”, “expect”, “may”, “will”,
“project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”,
“believe”, “would” and similar expressions. In particular, this news release contains
forward-looking statements pertaining to resources of the Company and other oil and gas
information. These statements involve substantial known and unknown risks and
uncertainties, certain of which are beyond the Company’s control, including: the impact of
general economic conditions; 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; fluctuations in commodity prices and foreign exchange and
interest rates; stock market volatility and market valuations; volatility in market prices
for oil and natural gas; liabilities inherent in oil and natural gas operations;
uncertainties associated with estimating oil and natural gas reserves; competition for,
among other things, capital, acquisitions, of reserves, undeveloped lands and skilled
personnel; incorrect assessments of the value of acquisitions; changes in income tax laws
or changes in tax laws and incentive programs relating to the oil and gas industry;
geological, technical, drilling and processing problems and other difficulties in
producing petroleum reserves; and obtaining required approvals of regulatory authorities.
The Company’s actual results, performance or achievement could differ materially from
those expressed in, or implied by, such forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the forward-looking
statements will transpire or occur or, if any of them do, what benefits the Company will
derive from them. These statements are subject to certain risks and uncertainties and may
be based on assumptions that could cause actual results to differ materially from those
anticipated or implied in the forward-looking statements. The forward-looking statements
in this news release are expressly qualified in their entirety by this cautionary
statement. Except as required by law, the Company undertakes no obligation to publicly
update or revise any forward-looking statements. Investors are encouraged to review and
consider the additional risk factors set forth in the Company’s Annual Information Form,
which is available on SEDAR at http://www.sedar.com.

All calculations converting natural gas to barrels of oil equivalent (“boe”) have been
made using a conversion ratio of six thousand cubic feet (six “Mcf”) of natural gas to one
barrel of oil, unless otherwise stated. The use of boe may be misleading, particularly if
used in isolation, as the conversion ratio of six Mcf 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 that the value ratio
based on the current price of crude oil as compared to natural gas is significantly
different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.

Certain information in this document may constitute “analogous information” as defined
in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI
51-101″), including, but not limited to, information relating to the areas in geographical
proximity to prospective lands held by Madalena and production information related to
wells that are believed to be on trend with the Company’s properties. Such information has
been obtained from government sources, regulatory agencies or other industry participants.
Management of Madalena believes the information is relevant as it helps to define the
reservoir characteristics in which Madalena may hold an interest. Madalena is unable to
confirm that the analogous information was prepared by a qualified reserves evaluator or
auditor. Such information is not an estimate of the reserves or resources attributable to
lands held or to be held by Madalena and there is no certainty that the reservoir data and
economics information for the lands held or to be held by Madalena will be similar to the
information presented herein. The reader is cautioned that the data relied upon by
Madalena may be in error and/or may not be analogous to such lands to be held by Madalena.

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

APPENDIX “A”

DEFINITIONS

In addition, the following sets out the applicable definition for each of the resource
categories as set out in the COGE Handbook, which are used in this news release.

        "Contingent resources"                       Definition: 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.
        "Discovered petroleum initially-in-place"    Definition: That quantity of petroleum
        or "discovered resources" or "DPIIP"         that is estimated, as of a given date, to
                                                     be contained in known accumulations prior
                                                     to production.
                                                     The recoverable portion of discovered
                                                     petroleum initially-in-place includes
                                                     production, reserves and contingent
                                                     resources; the remainder is unrecoverable.
        "Prospective resources"                      Definition: Those quantities of petroleum
                                                     estimated, as of a given date, to be
                                                     potentially recoverable from undiscovered
                                                     accumulations by application of
                                                     future development projects.
                                                     Prospective resources have both an
                                                     associated chance of discovery and a
                                                     chance of development.
        "Total petroleum initially-in-place",        Definition: That quantity of petroleum
        "total resources" or "TPIIP"                 that is estimated to exist originally in
                                                     naturally occurring accumulations; equal
                                                     to DPIIP plus UPIIP.
                                                     It includes that quantity of petroleum
                                                     that is estimated, as of a given date, to
                                                     be contained in known accumulations,
                                                     prior to production, plus those estimated
                                                     quantities in accumulations yet
                                                     to be discovered.
       "Undiscovered petroleum initially-in-place",  Definition: That quantity of petroleum
       "undiscovered resources" or "UPIIP"           that is estimated, on a given date, to be
                                                     contained in accumulations yet
                                                     to be discovered.
                                                     The recoverable portion of undiscovered
                                                     petroleum initially-in-place is referred
                                                     to as prospective resources; the
                                                     remainder is unrecoverable.

        For further information:
        Kevin Shaw, P.Eng, MBA
        President and Chief Executive Officer
        Madalena Ventures Inc.
        Phone: +1(403)262-1901 (Ext. 230)
        kdshaw@madalena-ventures.com

SOURCE Madalena Ventures Inc.


Source: PR Newswire