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Bellatrix Exploration announces material reserves increases (up 103%), posting $9.57/boe finding and development costs

March 6, 2014

TSX: BXE

CALGARY, March 6, 2014 /PRNewswire/ – Bellatrix Exploration Ltd. (“Bellatrix”
or the “Company”) announces the results of an independent reserve
evaluation effective December 31, 2013. The report was completed by
Sproule Associates Limited (“Sproule”). The evaluation encompasses
100% of Bellatrix’s oil and gas properties and was prepared in
accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (“NI 51-101″).

Bellatrix benefitted from the largest capital program since conversion
to a growth-oriented exploration and production company as it grew 103% to a total of 212 million boe proved and probable (“2P”) reserves with a 10% NPVBT of $2.1 billion in 2013.

Proved (“1P”) reserves grew 124% year over year to 124 million boe.

In 2013, the Company spent $281 million developing its resource play
assets and $518 million (net of dispositions) on acquiring additional
Cardium and Mannville production and development acreage. Resultant
growth contributed to an 82% increase in the Company’s net asset value to $1.95 billion, equivalent to $11.40/share using a 10%/year discount to future net revenue.

The Company replaced 1,452% of total production in 2013 with new proved and probable reserves at a finding, development and acquisition (“FD&A”) cost of $7.24/boe, excluding future development capital (“FDC”) requirements. Including FDC requirements, FD&A totaled $9.67/boe. Annual production was up 31% in 2013 to 8.0 million boe from 6.1 million boe.

The Company established 2P Recycle Ratio of 4.44x excluding FDC and acquisitions.

As at December 31, 2013 proved plus probable reserves were comprised of 78 million barrels of oil and natural gas liquids as well as 801 billion cubic feet of natural gas, with a 37% liquids weighting on a boe basis.

The Company’s calculated reserve life index improved to 13.7 years for 2P reserves and 9.1 years for 1P reserves.

A conference call to discuss Bellatrix’s annual financial and reserves results will be
held on March 13, 2014 at 9:00 am MDT/11:00 am EDT. To participate,
please call toll-free 1-888-231-8191 or 647-427-7450. The conference
call will also be recorded and available by calling 1-855-859-2056 or
403-451-9481 and entering passcode 33160756 followed by the pound sign.

KEY 2013 ACHIEVEMENTS

     _____________________________________________________________________
    |                            |Twelve months ended December,|          |
    |____________________________|_____________________________|__________|
    |                            |       2013|             2012|  Change  |
    |____________________________|___________|_________________|__________|
    |Reserves (company interest1,|           |                 |          |
    |mboe)                       |           |                 |          |
    |____________________________|___________|_________________|__________|
    | |Proved Developed Producing|     54,078|           24,518|   +121%  |
    |_|__________________________|___________|_________________|__________|
    | |Total Proved              |    124,154|           55,490|   +124%  |
    |_|__________________________|___________|_________________|__________|
    | |  Proved Undrilled/Total  |           |                 |          |
    | |Proved                    |        56%|              56%|          |
    |_|__________________________|___________|_________________|__________|
    | |Total Proved and Probable |    211,536|          104,258|   +103%  |
    |_|__________________________|___________|_________________|__________|
    | |  Probable/Total Proved   |           |                 |          |
    | |and Probable              |        41%|              47%|          |
    |_|__________________________|___________|_________________|__________|
    |Net Asset Value, ($B)       |      $1.95|            $1.07|    +82%  |
    |____________________________|___________|_________________|__________|
    |Net Asset Value, per basic  |           |                 |          |
    |share                       |     $11.40|            $9.90|    +15%  |
    |____________________________|___________|_________________|__________|
    |FD&A costs                  |           |                 |          |
    |____________________________|___________|_________________|__________|
    | |1P, including FDC ($/boe) |     $13.76|           $11.77|          |
    |_|__________________________|___________|_________________|__________|
    | |2P, including FDC ($/boe) |      $9.67|            $6.95|          |
    |_|__________________________|___________|_________________|__________|
    | |3 year average 2P,        |           |                 |          |
    | |including FDC ($/boe)     |      $9.01|            $9.04|          |
    |_|__________________________|___________|_________________|__________|
    |Annual Average Sales Volumes|           |                 |          |
    |(boe/d)                     |     21,829|           16,686|    +31%  |
    |____________________________|___________|_________________|__________|
    |Q4 Average Sales Volumes    |           |                 |          |
    |(boe/d)                     |     23,968|           18,763|    +28%  |
    |____________________________|___________|_________________|__________|
    |Exit Production Rate (boe/d)|     38,000|           19,500|    +95%  |
    |____________________________|___________|_________________|__________|
    |Funds Flow From Operations  |     $143.5|           $111.0|    +29%  |
    |($ millions)                |           |                 |          |
    |2(unaudited)                |           |                 |          |
    |____________________________|___________|_________________|__________|
    | |Per basic share           |           |                 |          |
    | |(unaudited)               |      $1.27|            $1.03|    +23%  |
    |_|__________________________|___________|_________________|__________|
    |Reserve Life Index          |           |                 |          |
    |____________________________|___________|_________________|__________|
    | |Proved                    |   9.1 yrs.|         8.6 yrs.|     +6%  |
    |_|__________________________|___________|_________________|__________|
    | |Proved and Probable       |  13.7 yrs.|        12.4 yrs.|    +10%  |
    |_|__________________________|___________|_________________|__________|
    |Recycle Ratios3             |           |                 |          |
    |____________________________|___________|_________________|__________|
    | |1P, excluding FDC         |     1.88 x|           2.35 x|          |
    |_|__________________________|___________|_________________|__________|
    | |2P, excluding FDC         |     2.90 x|           5.02 x|          |
    |_|__________________________|___________|_________________|__________|
    | |1P, excluding FDC and     |           |                 |          |
    | |acquisitions              |     3.38 x|                 |          |
    |_|__________________________|___________|_________________|__________|
    | |2P, excluding FDC and     |           |                 |          |
    | |acquisitions              |     4.44 x|                 |          |
    |_|__________________________|___________|_________________|__________|
    |Evaluated Future Horizontal |           |                 |          |
    |Drilling Locations          |           |                 |          |
    |____________________________|___________|_________________|__________|
    | |Gross Cardium             |        335|              161|   +108%  |
    |_|__________________________|___________|_________________|__________|
    | |Net Cardium               |      238.4|            112.7|   +111%  |
    |_|__________________________|___________|_________________|__________|
    | |Gross Mannville           |        184|               56|   +228%  |
    |_|__________________________|___________|_________________|__________|
    | |Net Mannville             |      109.7|             23.3|   +371%  |
    |_|__________________________|___________|_________________|__________|

    1 "Company Interest" means Bellatrix's working interest (operated or
    non-operated) share before deduction of royalties but after including
    any royalty interests of Bellatrix.  May not add due to rounding
    2 Funds flow from operations is not a recognized term under Canadian
    generally accepted accounting principles. See "Non-GAAP Measures"
    3Operating netback includes impact of commodity price risk contracts

SELECT 2013 OPERATING RESULTS

To assist in interpretation of the Company’s reserves and key
achievements, Bellatrix releases select 2013 unaudited operating
results ahead of full year-end 2013 financial results including data on
capital expenditures, cash flow from operating activities, and drilling
results.

CAPITAL EXPENDITURES


                                              Years ended December 31,

                                               2013                    2012
    ($000s)                             (unaudited)

    Lease acquisitions
    and retention                            11,190                   8,303

    Geological and
    geophysical                                 140                     290

    Drilling and
    completion costs                        211,912                 118,783

    Facilities and
    equipment                                57,767                  36,811

      Exploration and
    development1                            281,009                 164,187

    Corporate2                                9,270                     195

    Property
    acquisitions                             13,380                  20,966

      Total capital
    expenditures - cash                     303,659                 185,348

    Property
    dispositions - cash                    (70,936)                 (6,660)

      Total net capital
    expenditures - cash                     232,723                 178,688

    Corporate
    acquisition - non
    cash 3                                  576,000                       -

    Capital lease
    additions - non cash                          -                  10,000

    Adjustment on
    property acquisition
    - non-cash                                    -                  16,160

    Other 4                                   1,958                   (285)

      Total -  non -
    cash                                    577,958                  25,875

      Total capital
    expenditures                            811,738                 204,563

    1 Excludes capitalized costs related to decommissioning liabilities
    expenditures incurred during the year.
    2 Corporate includes furniture, fixtures and other costs
    3 Corporate acquisitions includes the announced purchase price rather
    than the actual amount allocated to property, plant and equipment for
    accounting purposes
    4Other includes non-cash adjustments for current year's decommissioning
    liabilities and share based compensation. 

The $812 million capital program for the year ended December 31, 2013
was financed from funds flow from operations, common share offering and
bank debt.

RECONCILIATION OF CASH FLOW FROM OPERATING ACTIVITIES AND FUNDS FLOW
FROM OPERATIONS


                                                   Years ended December 31,

                                                      2013
                                                                       2012
    ($000s)                                    (unaudited)

    Cash flow from operating activities            126,255          109,328

    Decommissioning costs incurred                   1,057              635

    Realization of imputed interest costs
    for settlement of convertible debentures         2,203                -

    Transaction costs                                5,344                -

    Change in non-cash working capital               8,600            1,075

    Funds flow from operations1                    143,459          111,038

    1Funds flow from operations is not a recognized term under Canadian
    generally accepted accounting principles. See "Non-GAAP Measures"

Bellatrix generated funds flow from operations of $143.5 million ($1.27
per basic share and $1.24 per diluted share) for the year ended
December 31, 2013, an increase of 29% from $111.0 million ($1.03 per
basic share and $0.96 per diluted share) for 2012. Bellatrix’s cash
flow from operating activities of $126.3 million ($1.12 per basic share
and $1.09 per diluted share) for the year ended December 31, 2013
increased by 15% from the $109.3 million ($1.02 per basic share and
$0.95 per diluted share) generated in 2012. The increase in funds flow
from operations was primarily due to increased light oil, condensate,
NGL, and natural gas prices positively impacting revenues and netbacks,
partially offset by a higher net realized loss on commodity contracts,
increased general and administrative expenses, operating,
transportation, and royalties expenses, and the impact of lower heavy
oil commodity prices.

Bellatrix maintains a commodity price risk management program to provide
a measure of stability to funds flow from operations. Unrealized
mark-to-market gains or losses are non-cash adjustments to the current
fair market value of the contract over its entire term and are included
in the calculation of net profit.

JOINT VENTURES / ACQUISITIONS / DISPOSITIONS

Bellatrix is executing all three of its Joint Venture programs in line
within expectations and the impact of the Joint Ventures has been
incorporated into the 2013 operating results and reserves, as of
December 31, 2013. This includes:

        --  7.42 net Grafton JV wells drilled of the 58 net Cardium and
            Mannville program,
        --  22 spud wells of a 63 well Cardium Troika JV program, and,
        --  The completed disposition associated with the Daewoo/Devonian
            partnership.  Eleven gross partnership wells from the 70 well
            partnership program have been drilled to year-end, 2013.

The Troika Joint Venture is scheduled to be materially complete by
December 31, 2014. The Grafton Joint Venture is planned for completion
on or before June 30, 2015, subject to a Grafton election to extend the
program by a further $50 million (Grafton share), extending the venture
to December 31, 2015. The Daewoo/Devonian partnership drilling program
is scheduled to be complete by December 31, 2015.

2013 RESERVES

Bellatrix engaged Sproule to complete a reserve report in accordance
with NI 51-101, on 100% of Bellatrix’s oil and gas properties effective December 31,
2013.

Highlights of Bellatrix’s December 31, 2013 reserves and 2013 reserve
additions include:

        --  212 million boe total company interest proved and probable
            reserves, and 124  million boe total company interest proved
            reserves as at December 31, 2013, representing 103% and 124%
            year over year growth in 2013, respectively.

        --  $2,090 million net present value of future net revenue of
            working interest reserves before tax at 10% discount rate up
            from $1,107 million posted as of December 31, 2012. This growth
            contributes to an 82% increase in Bellatrix's net asset value,
            as at December 31, 2013 to $11.40 per basic share outstanding
            based on the Sproule evaluation of proved and probable reserves
            at a 10% discount rate.

        --  1,452% replacement of production with 2P company interest
            reserve additions in year ended 2013.

        --  $13.76/boe FD&A for proved reserves including changes to future
            development capital and $11.17/boe FD&A for 1P reserves
            excluding changes to FDC for the year ended 2013.

        --  $9.67/boe FD&A for total proved and probable reserves including
            changes to future development capitaland FD&A of $7.24/boe for
            total 2P reserves excluding changes to FDC for the year ended
            2013.

        --  $9.01/boe 3-year 2P FD&A including FDC.

        --  13.7 year reserve life index on a total working interest proved
            and probable basis at December 31, 2013 based on Sproule's 2014
            forecasted average production of 42,389 boe/d.

        --  335 gross (238.4 net) Cardiumevaluated future undrilled
            horizontal locations.

        --  184 gross (109.7 net) Mannvilleevaluated future undrilled
            horizontal locations.
     _________________________________________________________________
    |                                             | |  2012  |        |
    |                        2013 Reserves        | |Reserves|        |
    |_____________________________________________|_|________|________|
    |           |Oil & Liquids|Natural Gas|  Total| |   Total|Variance|
    |___________|_____________|___________|_______|_|________|________|
    |           |      (mbbls)|     (mmcf)| (mboe)| |  (mboe)|     %  |
    |___________|_____________|___________|_______|_|________|________|
    |Proved     |       45,061|    474,560|124,154| |  55,490|  +124% |
    |___________|_____________|___________|_______|_|________|________|
    |Probable   |       33,030|    326,113| 87,382| |  48,767|  +179% |
    |___________|_____________|___________|_______|_|________|________|
    |Proved Plus|       78,090|    800,673|211,536| | 104,258|  +103% |
    |Probable   |             |           |       | |        |        |
    |___________|_____________|___________|_______|_|________|________|

NET ASSET VALUE – PROVED PLUS PROBABLE

The following table of net asset value, as at December 31, 2013, is
based on the Sproule evaluation of future net revenue of the Company’s
proved plus probable reserves before tax, which does not represent fair
market value and does not take into account possible reserve additions
from reinvestment of cash flow in existing properties.


    ($000's except acre, unit and per unit amounts)

                             PW 0%     PW 5%    PW 10%    PW 15%    PW 20%

    Proved plus Probable 4,868,056 3,008,173 2,090,071 1,558,798 1,218,125
    Reserves1

    Undeveloped Lands2     231,351   231,351   231,351   231,351   231,351

    Value of Seismic3       22,576    22,576    22,576    22,576    22,576

    Net Debt4            (395,483) (395,483) (395,483) (395,483) (395,483)

    Net Asset Value 5    4,726,500 2,866,617 1,948,515 1,417,242 1,076,569

    Per Common Share6                                             

    - Per Basic Share       $27.64    $16.76    $11.40     $8.29     $6.30

    1 As evaluated by Sproule as at December 31, 2013 based on forecast
    prices and costs before income tax.
    2 As estimated by Bellatrix as at December 31, 2013 based on 416,631
    net acres of undeveloped land at an average price of $555.29 per acre.
    3 Based on 27.7% of $81.5 million replacement value based on seismic
    costs to buy data at an average of $1,500/km for 2d and $10,000/km2 for
    3D.
    4 The Company's calculation of Net Debt as at December 31, 2013,
    includes long-term debt and the net working capital deficiency
    (excess).  The net working capital deficiency (excess) excludes the
    current portions of: finance lease obligation, deferred lease
    inducements and commodity contract liability and asset. See "Additional
    GAAP Measures".
    5Certain of the information used in the foregoing calculation,
    including net debt and number of common shares outstanding, is based on
    unaudited financial information.
    6Based on 170.990 million common shares outstanding as at December 31,
    2013.

NET PRESENT VALUE OF FUTURE NET REVENUE (“NPV”)

The forecast prices used in Sproule’s reserve report effective December
31, 2013 (the “Sproule Report”) were an average of the forecast prices
published by Sproule, GLJ Petroleum Consultants Ltd. and McDaniel &
Associates Consultants Ltd., as at January 1, 2014 (the “Consultants’
Average Forecast Prices”). It should not be assumed that the NPV estimated by Sproule represents
the fair market value of the reserves.

Estimated future net revenues are stated before deducting future
estimated site restoration costs but are reduced for estimated future
abandonment costs, the Saskatchewan Capital Tax and estimated capital
for future development associated with the reserves. In the Sproule
Report, the net total future capital over the life of the reserves
associated with the proved reserves is $787 million ($675 million
discounted at 10%) and $1,285 million ($1,097 million discounted at 10%) for the total
proved and probable reserves. The change in 2013 net total future
capital over the life of the reserves associated with the proved
reserves is $241 million ($192 million discounted at 10%) and $335 million ($274 million discounted at 10%) for the total proved
and probable reserves. Calculated changes in net future capital exclude
future capital from acquired properties.

SUMMARY OF NPV BEFORE INCOME TAXES(1, 2)


    As at December 31,
    2013                         0%        5%       10%       15%       20%

    Proved                                                                 

      Developed producing 1,401,678 1,070,782   879,300   754,390   666,223

      Developed                                                       9,136
      non-producing          16,906    13,841    11,760    10,263

      Undeveloped         1,283,180   808,145   542,023   376,274   265,409

    Total proved          2,701,764 1,892,768 1,433,082 1,140,927   940,768

    Probable              2,166,291 1,115,405   656,989   417,871   277,356

    Proved Plus Probable
    Producing             1,940,817 1,350,906 1,052,520   873,534   754,100

    Total proved plus
    probable              4,868,056 3,008,173 2,090,071 1,558,798 1,218,125

    1 Forecast Prices and Costs ($000s), Discounted at (%/year).
    2 May not add due to rounding.

SUMMARY OF NPV AFTER INCOME TAXES(1, 2, 3)


    As at  December 31,
    2013                         0%        5%       10%       15%       20%

    Proved                                                                 

      Developed producing 1,350,899 1,049,269   869,286   749,391   663,586

      Developed                                                       8,626
      non-producing          12,679    11,447    10,365     9,429

      Undeveloped           962,372   599,581   395,454   267,800   182,110

    Total proved          2,325,950 1,660,297 1,275,105 1,026,620   854,322

    Probable              1,624,559   825,100   474,421   290,892   182,971

    Proved Plus Probable
    Producing             1,755,155 1,264,664 1,006,871   847,254   738,054

    Total proved plus
    probable              3,950,509 2,485,397 1,749,526 1,317,513 1,037,293

    1 Forecast Prices and Costs ($000s), Discounted at (%/year).
    2 May not add due to rounding.
    3The after-tax NPV of Bellatrix's oil and gas properties reflects the
    tax burden on the properties on a stand-alone basis and utilizes
    corporate tax pools.  It does not consider the business-entity-level
    tax situation, or tax planning.  It does not provide an estimate of the
    value at the level of the business entity, which may be significantly
    different.  Bellatrix's consolidated financial statements and
    management's discussion and analysis should be consulted for
    information at the business entity level.

PROVED PLUS PROBABLE FD&A COSTS(1, 2)


                                                             2011 - 2013
                                             2013 2012  2011        Avg.

    Excluding FDC                                                       

    FD&A Costs, 2P ($/boe)                                              

      Exploration and development3           4.73 4.29  5.99        4.89

      Acquisitions (excluding dispositions)4 9.70 4.21 12.24        9.29

      Total (including acquisitions)         7.24 4.28  6.06        6.40

    Including FDC3                                                      

    FD&A Costs, 2P ($/boe)                                              

      Exploration and development            9.65 7.31  9.26        8.86

      Acquisitions (excluding dispositions)4 9.70 4.21 12.24        9.29

      Total (including acquisitions)         9.67 6.95  9.29        9.01

    1NI 51-101 specifies how finding and development costs should be
    calculated if they are reported.  Essentially NI 51-101 requires that
    the exploration and development costs incurred in the year along with
    the change in estimated future development costs be aggregated and then
    divided by the applicable reserve additions.  The calculation
    specifically excludes the effects of acquisitions and dispositions on
    both reserves and costs.  By excluding the effects of acquisitions and
    dispositions Bellatrix believes that the provisions of the NI 51-101 do
    not fully reflect Bellatrix's ongoing reserve replacement costs.  Since
    acquisitions can have a significant impact on Bellatrix's annual
    reserve replacement costs, excluding these amounts could result in an
    inaccurate portrayal of Bellatrix's cost structure.  Accordingly,
    Bellatrix also provides FD&A costs that incorporate all acquisitions
    net of any dispositions during the year.  The foregoing calculation is
    based on working interest reserves.
    2Certain of the information used in the foregoing calculation,
    including exploration and development expenditures and acquisition
    expenditures is based on unaudited financial information and is subject
    to audit and may be subject to change.
    3The 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.
    4FD&A is calculated using the announced purchase price for corporate
    acquisitions rather than the actual amount allocated to property, plant
    and equipment for accounting purposes.

PROVED FD&A COSTS(1, 2)


                                                               2011- 2013
                                              2013  2012  2011    Average

    Excluding FDC                                                        

    FD&A Costs, 1P ($/boe)                                               

      Exploration and development3            6.21  8.87  8.28       7.31

      Acquisitions (excluding dispositions)4 18.04 12.20 15.71      17.73

      Total (including acquisitions)         11.17  9.16  8.37      10.33

    Including FDC3                                                       

    FD&A Costs, 1P ($/boe)                                               

      Exploration and development            10.67 11.73 12.97      11.47

      Acquisitions (excluding dispositions)4 18.04 22.42 15.71      18.24

      Total (including acquisitions)         13.76 11.77 13.00      13.29

    1NI 51-101 specifies how finding and development costs should be
    calculated if they are reported.  Essentially NI 51-101 requires that
    the exploration and development costs incurred in the year along with
    the change in estimated future development costs be aggregated and then
    divided by the applicable reserve additions.  The calculation
    specifically excludes the effects of acquisitions and dispositions on
    both reserves and costs.  By excluding the effects of acquisitions and
    dispositions Bellatrix believes that the provisions of the NI 51-101 do
    not fully reflect Bellatrix's ongoing reserve replacement costs.  Since
    acquisitions can have a significant impact on Bellatrix's annual
    reserve replacement costs, excluding these amounts could result in an
    inaccurate portrayal of Bellatrix's cost structure.  Accordingly,
    Bellatrix also provides FD&A costs that incorporate all acquisitions
    net of any dispositions during the year.  The foregoing calculation is
    based on working interest reserves.
    2Certain of the information used in the foregoing calculation,
    including exploration and development expenditures and acquisition
    expenditures is based on unaudited financial information and is subject
    to audit and may be subject to change as a result.
    3The 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.
    4FD&A is calculated using the announced purchase price for corporate
    acquisitions rather than the actual amount allocated to property, plant
    and equipment for accounting purposes.

RESERVE LIFE INDEX

Bellatrix’s reserve life index has been determined for proved and proved
plus probable working interest reserves using forecast prices and
costs. The reserve life index for 2013 below is calculated by dividing
reserves as at the effective date of the Sproule Report, December 31,
2013, by 2014 forecasted average production of 42,389 boe/d proved plus
probable and 37,311 boe/d proved, as set forth in the Sproule Report,
representing a measure of the amount of time production could be
sustained at the production rates based on the reserves at the
applicable point in time.


                          2013   2012   2011   2010   2009

    Proved                9.1    8.6    8.0    7.2    6.4

    Proved and Probable   13.7   12.4   10.0   11.2   9.4

RECYCLE RATIO (OPERATING NETBACK(1)/FD&A COST)

     _______________________________________________________________
    |As at December 31, 2013                      |Proved|Proved and|
    |                                             |      | Probable |
    |_____________________________________________|______|__________|
    |Operating netback before commodity price risk|$20.76|   $20.76 |
    |management contracts ($/boe) 1               |      |          |
    |(unaudited)                                  |      |          |
    |_____________________________________________|______|__________|
    |Recycle ratio (excluding change in FDC)      |1.86 x|   2.87 x |
    |_____________________________________________|______|__________|
    |Recycle ratio (excluding change in FDC and   |3.34 x|   4.39 x |
    |acquisitions)                                |      |          |
    |_____________________________________________|______|__________|
    |                                             |      |          |
    |_____________________________________________|______|__________|
    |Operating netback after commodity price risk |$20.99|   $20.99 |
    |management contracts ($/boe) 1               |      |          |
    |(unaudited)                                  |      |          |
    |_____________________________________________|______|__________|
    |Recycle ratio (excluding change in FDC)      |1.88 x|   2.90 x |
    |_____________________________________________|______|__________|
    |Recycle ratio (excluding change in FDC and   |3.38 x|   4.44 x |
    |acquisitions)                                |      |          |
    |_____________________________________________|______|__________|

    1Operating netback is calculated by deducting transportation,
    royalties and operating costs from revenue. (See Non-GAAP Measures)

The recycle ratio is a measure for evaluating the effectiveness of a
company’s re-investment program. The ratio measures the efficiency of
capital investment. It accomplishes this by comparing the operating
netback per boe to that year’s reserve FD&A cost per boe. In 2013, the
Company completed a large acquisition at FD&A metrics that, while
completed at excellent metrics below $10/boe, were still considerably
above those of the Company’s exploration and development program. For
this reason, recycle ratio information is included for both the total
capital program and the exploration and development program alone.

RESERVES RECONCILIATION

Reserves included herein are stated either on a company interest basis
(working interest plus royalty interests prior to deduction of royalty
burdens), a gross (working interest excluding royalty interests and
burdens) or a net (working interest plus royalty interest less royalty
burdens) 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 prepared in
accordance with NI 51-101 or to other issuers’ estimates of company
interest reserves.

At December 31, 2013 the Company’s proved plus probable company interest
reserves as evaluated by Sproule, using forecast prices and costs, were
211,536 mboe, an increase of 103% compared to 104,258 mboe at December
31, 2012. By commodity type, natural gas made up 63% and oil and
natural gas liquids 37% of total proved plus probable reserves. At
December 31, 2013, the Company’s total proved company interest reserves
were 124,154 mboe, an increase of 124% compared to 55,490 mboe at
December 31, 2012.

In addition to the information disclosed herein, more detailed
information on the Company’s reserves will be included in the Company’s
Annual Information Form.

Reserves, at December 31, 2013, as evaluated by Sproule, are summarized
below and in the following tables.


    Summary of Oil and Gas Company Interest Reserves1(Gross + Royalties
    Receivable)

    Forecast Prices and Costs

                                                                  As at
                                                                 Dec. 31,
                                      As at Dec. 31, 2013          2012

                    Natural  Heavy           Natural
                       Gas2    Oil Light and     Gas       Total    Total

                                      Medium
                                         Oil Liquids                     

                                                                   (mboe,
                     (mmcf) (mbbl)    (mbbl)  (mbbl) (mboe, 6:1)     6:1)

    Proved                                                               

      Developed
      producing     195,873    104     9,396  11,932      54,078   24,518

      Developed
      non-producing   3,126      -       116     144         781      166

      Undeveloped   275,561    113     9,481  13,774      69,295   30,807

    Total proved    474,560    217    18,993  25,850     124,154   55,490

    Probable        326,113    265    11,568  21,197      87,382   48,767

    Proved plus     260,974
    probable,
    producing                  170    12,600  15,825      72,091   34,398

    Total proved    800,673
    plus probable              482    30,561  47,047     211,536  104,258

    1 "Company Interest" means Bellatrix's working interest
    (operated or non-operated) share before deduction of royalties
    but after including any royalty interests of Bellatrix. May not
    add due to rounding.
    2Includes natural gas from coal bed methane and shale gas
    reserves.

    Summary of Oil and Gas Working Interest Reserves1 (Gross)

    Forecast Prices and Costs

                                                                  As at
                                                                 Dec. 31,
                                      As at Dec. 31, 2013          2012

                    Natural            Light Natural
                       Gas2 Heavy Oil    and     Gas       Total    Total

                                      Medium
                                         Oil Liquids                     

                                                                   (mboe,
                     (mmcf)    (mbbl) (mbbl)  (mbbl) (mboe, 6:1)     6:1)

    Proved                                                               

      Developed
      producing     195,675       104  9,396  11,924      54,037   24,468

      Developed
      non-producing   3,122         -    116     144         780      166

      Undeveloped   275,557       113  9,481  13,774      69,295   30,581

    Total proved    474,353       217 18,993  25,842     124,111   55,215

    Probable        326,065       265 11,568  21,195      87,372   48,519

    Proved plus     260,731
    probable,
    producing                     170 12,600  15,815      72,040   34,396

    Total proved    800,418
    plus probable                 482 30,561  47,037     211,483  103,734

    1 "Working Interest" means Bellatrix's working interest
    (operated or non-operated) share before deduction of
    royalties.  Also referred to as "Gross" reserves under NI
    51-101.  May not add due to rounding.
    2 Includes natural gas from coal bed methane and shale gas
    reserves.



    Summary of Oil and Gas Net Reserves1 (Net)

    Forecast Prices and Costs

                                                                   As at
                                                                  Dec. 31,
                                       As at Dec. 31, 2013          2012

                    Natural  Heavy            Natural
                       Gas2    Oil  Light and     Gas       Total    Total

                                   Medium Oil Liquids                     

                                                                    (mboe,
                     (mmcf) (mbbl)     (mbbl)  (mbbl) (mboe, 6:1)     6:1)

    Proved                                                                

      Developed
      producing     153,737     74      7,352   7,962      41,012   18,526

      Developed
      non-producing   2,654      -        104      91         638      128

      Undeveloped   227,457     84      7,679   9,763      55,436   23,536

    Total proved    383,848    158     15,136  17,817      97,086   42,189

    Probable        265,000    194      9,120  14,569      68,050   36,095

    Proved plus
    probable,
    producing       204,336    123      9,784  10,445      54,408   25,806

    Total proved
    plus probable   648,848    352     24,256  32,386     165,136   78,284

    1 "Net" means Bellatrix's working interest (operated or
    non-operated) share after deduction of royalty obligations,
    plus Bellatrix's royalty interests in reserves.  May not add
    due to rounding.
    2 Includes natural gas from coal bed methane and shale gas
    reserves.

                                            COMPANY INTEREST1 (Gross + Royalties Receivable) RESERVES RECONCILIATION

                       Light and         Heavy Crude        Total Crude        NGLs (mbbl)       Conventional      Oil Equivalent
                         Medium           Oil (mbbl)         Oil (mbbl)                          Natural Gas           (mboe)
                       Crude Oil                                                                   (mmcf)2
                         (mbbl)

    PROVED
    PRODUCING                                                                                                                     

    Opening
    Balance                   5,337                 68              5,405              3,796             91,900             24,518

      Extensions                651                  -                651              1,221             30,178              6,902

      Infill
    Drilling                    230                  -                230                 38              1,325                488

      Improved
    Recovery                      -                  -                  -                  -                  -                  -

      Technical
    Revisions                   362                107                468              2,207             60,767             12,803

    Discoveries                   -                  -                  -                  -                  -                  -

    Acquisitions              3,994                  -              3,994              6,160             49,314             18,373

    Dispositions               (25)                  -               (25)               (54)            (1,324)              (300)

      Economic
    Factors                   (208)                  -              (208)               (82)            (2,690)              (738)

      Production              (944)               (71)            (1,014)            (1,354)           (33,597)            (7,968)

    Closing
    Balance                   9,396                104              9,500             11,932            195,873             54,078

    TOTAL PROVED                                                                                                                  

    Opening
    Balance                  10,479                181             10,660              9,062            214,607             55,490

      Extensions
                              2,022                  -              2,022              6,154            151,016             33,346

      Infill
    Drilling                    310                  -                310                272              3,012              1,084

      Improved
    Recovery                      -                  -                  -                  -                  -                  -

      Technical
    Revisions                 (209)                106              (103)              1,634             55,723             10,818

    Discoveries                   -                  -                  -                  -                  -                  -

    Acquisitions              7,625                  -              7,625             10,206             89,119             32,685

    Dispositions             (186)                   -              (186)              (117)            (4,416)            (1,039)

      Economic
    Factors                   (104)                  -              (104)                (8)              (903)              (262)

      Production              (944)               (71)            (1,014)            (1,354)           (33,597)            (7,968)

    Closing
    Balance                  18,993                217             19,210             25,850            474,560            124,154

    PROBABLE                                                                                                                      

    Opening
    Balance                   6,073                224              6,297              8,624            203,077             48,767

      Extensions
                              2,762                  -              2,762              5,342            122,132             28,460

      Infill
    Drilling                    135                  -                135                368              2,261                880

      Improved
    Recovery                      -                  -                  -                  -                  -                  -

      Technical
    Revisions               (1,197)                 36            (1,160)            (3,122)           (66,341)           (15,340)

    Discoveries                   -                  -                  -                  -                  -                  -

    Acquisitions              4,043                  -              4,043             10,671             80,387             28,112

    Dispositions              (350)                  -              (350)              (666)           (14,558)            (3,442)

      Economic
    Factors                     101                  4                106               (21)              (844)               (55)

      Production
                                  -                  -                  -                  -                  -                  -

    Closing
    Balance                  11,568                265             11,833             21,197            326,113             87,382

    PROVED PLUS
    PROBABLE                                                                                                   

    Opening
    Balance                  16,552                405             16,957             17,687            417,684            104,258

      Extensions
                              4,785                  -              4,785             11,497            273,147             61,806

      Infill
    Drilling                    445                  -                445                640              5,273              1,964

      Improved
    Recovery                      -                  -                  -                  -                  -                  -

      Technical
    Revisions               (1,406)                143            (1,263)            (1,489)           (10,619)            (4,522)

    Discoveries                   -                  -                  -                  -                  -                  -

    Acquisitions             11,668                  -             11,668             20,878            169,507             60,797

    Dispositions              (536)                  -              (536)              (783)           (18,974)            (4,481)

      Economic
    Factors                     (3)                  4                  2               (28)            (1,747)              (318)

      Production              (944)               (71)            (1,014)            (1,354)           (33,597)            (7,968)

    Closing
    Balance                  30,561                482             31,043             47,047            800,673            211,536

    1 "Company Interest" means Bellatrix working interest (operated or
    non-operated) share before deduction of royalties but including any
    royalty interests of Bellatrix.  Based on forecast prices and costs.
    May not add due to rounding.
    2 Company coal bed methane and shale gas reserves have been included in
    Natural Gas.  Coal bed methane and shale gas reserves represent an
    immaterial portion of the Company's Natural Gas reserves.
    3 Opening Balance is as at December 31, 2012 and Closing Balance is as
    at December 31, 2013.

                                                             WORKING INTEREST1 (Gross) RESERVES RECONCILIATION

                       Light and         Heavy Crude        Total Crude        NGLs (mbbl)       Conventional      Oil Equivalent
                         Medium           Oil (mbbl)         Oil (mbbl)                          Natural Gas           (mboe)
                       Crude Oil                                                                   (mmcf)2
                         (mbbl)

    PROVED
    PRODUCING                                                                                                                     

    Opening
    Balance                   5,337                 68              5,405              3,787             91,664             24,469

      Extensions                651                  -                651              1,221             30,178              6,902

      Infill
    Drilling                    230                  -                230                 38              1,325                488

      Improved
    Recovery                      -                  -                  -                  -                  -                  -

      Technical
    Revisions                   362                107                468              2,209             60,799             12,810

    Discoveries                   -                  -                  -                  -                  -                  -

    Acquisitions              3,994                  -              3,994              6,159             49,283             18,366

    Dispositions               (25)                  -               (25)               (54)            (1,324)              (300)

      Economic
    Factors                   (208)                  -              (208)               (82)            (2,687)              (738)

      Production              (944)               (71)            (1,014)            (1,354)           (33,563)            (7,961)

    Closing
    Balance                   9,396                104              9,500             11,924            195,675             54,037

    TOTAL PROVED                                                                                                                  

    Opening
    Balance                  10,468                181             10,649              9,008            213,348             55,215

      Extensions
                              2,022                  -              2,022              6,154            151,016             33,346

      Infill
    Drilling                    310                  -                310                272              3,012              1,085

      Improved
    Recovery                      -                  -                  -                  -                  -                  -

      Technical
    Revisions                 (198)                106               (92)              1,680             56,769             11,050

    Discoveries                   -                  -                  -                  -                  -                  -

    Acquisitions              7,625                  -              7,625             10,205             89,088             32,678

    Dispositions             (186)                   -              (186)              (117)            (4,416)            (1,039)

      Economic
    Factors                   (104)                  -              (104)                (8)              (900)              (262)

      Production              (944)               (71)            (1,014)            (1,354)           (33,563)            (7,961)

    Closing
    Balance                  18,993                217             19,210             25,842            474,353            124,111

    PROBABLE                                                                                                                      

    Opening
    Balance                   6,058                224              6,282              8,576            201,962             48,519

      Extensions
                              2,762                  -              2,762              5,342            122,132             28,460

      Infill
    Drilling                    135                  -                135                368              2,261                880

      Improved
    Recovery                      -                  -                  -                  -                  -                  -

      Technical
    Revisions               (1,182)                 36            (1,145)            (3,076)           (65,265)           (15,099)

    Discoveries                   -                  -                  -                  -                  -                  -

    Acquisitions              4,043                  -              4,043             10,671             80,379             28,110

    Dispositions              (350)                  -              (350)             (666)            (14,558)            (3,442)

      Economic
    Factors                     102                  5                106               (21)              (846)               (56)

      Production
                                  -                  -                  -                  -                  -                  -

    Closing
    Balance                  11,568                265             11,833             21,195            326,065             87,372

    PROVED PLUS
    PROBABLE                                                                                                   

    Opening
    Balance                  16,526                405             16,931             17,584            415,310            103,734

      Extensions
                              4,785                  -              4,785             11,497            273,147             61,806

      Infill
    Drilling                    445                  -                445                640              5,273              1,964

      Improved
    Recovery                      -                  -                  -                  -                  -                  -

      Technical
    Revisions               (1,380)                143            (1,237)            (1,396)            (8,496)            (4,050)

    Discoveries                   -                  -                  -                  -                  -                  -

    Acquisitions             11,668                  -             11,668             20,876            169,468             60,789

    Dispositions              (536)                  -              (536)              (783)           (18,974)            (4,481)

      Economic
    Factors                     (3)                  4                  2               (28)            (1,746)              (317)

      Production              (944)               (71)            (1,014)            (1,354)           (33,563)            (7,961)

    Closing
    Balance                  30,561                482             31,043             47,037            800,418            211,483

    1 "Working Interest" means Bellatrix working interest (operated or
    non-operated) share before deduction of royalties and without including
    any royalty interest of Bellatrix.  Also referred to as "Gross"
    reserves under NI 51-101.  May not add due to rounding.
    2 Company coal bed methane and shale gas reserves have been included in
    Natural Gas.  Coal bed methane reserves had been reconciled separately
    in previous reserve press releases; however, coal bed methane and shale
    gas reserves represent an immaterial portion of the Company's Natural
    Gas reserves.
    3 Opening Balance is at December 31, 2012 and Closing Balance is as at
    December 31, 2013.

TAX POOLS

At December 31, 2013, the Company had approximately $1.2 billion in tax
pools available for deduction against future income as follows:


    ($000s)                                   Rate %        2013    2012
                                                     (unaudited)

    Canadian exploration expenses                100      99,000  45,900

    Canadian development expenses                 30     696,400 369,300

    Canadian oil and gas property expenses        10      80,200  40,400

    Foreign resource expenses                     10         900     800

    Alberta Non Capital losses greater than      100      16,100  16,100
    Federal Non Capital Losses

    Undepreciated capital cost1                 6-55     224,900  98,000

    Non capital losses  (expire through 2027)    100      94,500  10,000

    Financing  costs                          20 S.L      15,600   3,300

    Total Tax Pools                                    1,227,600 583,800

    1Approximately $207 million of undepreciated capital cost pools are
    class 41, which is claimed at a 25% rate.

FUTURE DEVELOPMENT COSTS USING FORECAST PRICES AND COSTS

At year-end, 2013, Sproule had evaluated certain future development
opportunities on Company lands including 335 gross (238 net) future
undrilled Cardium horizontal locations and 184 gross (110 net)
evaluated future undrilled Mannville horizontal locations. Of the 335
Cardium locations, 228 were assigned proved and probable reserves, with
107 assigned probable reserves only. Of the 184 Mannville locations,
112 were assigned proved and probable reserves, with the remaining 72
assigned probable reserves only.

For purposes of assigning net present value of future revenue, future
development locations were committed as detailed in the following
table. On the basis of current cash flow projections, the schedule,
and resulting NPV, can be considered conservative, as the future
development inventory represents only approximately two years of
reinvested cash flow.


                         Proved      Proved plus
                         Future      Probable Future
                         Development Development
    ($000's)             Costs       Costs

    2014                    $265,755        $411,531

    2015                    $219,343        $343,299

    2016                    $198,868        $356,991

    2017 and subsequent     $102,245        $172,028

    Undiscounted total      $786,987      $1,284,616

    Discounted @ 10%/yr.    $675,063      $1,097,052

RESERVE REPORT COMMODITY PRICING

The following is a summary of the Consultants’ Average Forecast Prices
as at December 31, 2013:


                                    OIL                                                 

                                                            NATURAL
                                                 NATURAL      GAS
                  WTI      Edmonton   Hardisty   GAS AECO   LIQUIDS
                Cushing   Par Price  Heavy 12°    Price        at     INFLATION  EXCHANGE
    Year        Oklahoma   40° API    API API     ($Cdn/   Edmonton3   RATES1     RATE2
    Forecast   ($US/Bbl)  ($Cdn/Bbl) ($Cdn/Bbl)   MMBTU)   ($Cdn/Bbl)  %/Year   ($US/$Cdn)

    2014          101.11     93.47      67.17       4.01      103.73     1.833     0.947

    2015          98.88      94.39      68.74       4.17      102.83     1.833     0.947

    2016          97.42      95.71      70.02       4.35      102.58     1.833     0.947

    2017          101.42     99.87      73.16       4.81      107.24     1.833     0.947

    2018          102.03     100.48     73.65       4.99      107.91     1.833     0.947

    2019          103.00     101.43     74.34       5.18      108.96     1.833     0.947

    2020          104.56     102.88     75.43       5.29      110.51     1.833     0.947

    2021          106.48     104.75     76.79       5.38      112.49     1.833     0.947

    2022          108.43     106.67     78.24       5.48      114.56     1.833     0.947

    2023          111.43     108.65     79.71       5.58      116.68     1.833     0.947

    2024          112.46     110.62     81.15       5.68      118.80     1.833     0.947

    2025          114.51     112.64     82.64       5.80      120.94     1.833     0.947

    2026          116.61     114.72     84.18       5.90      123.18     1.833     0.947

    2027          118.75     116.79     85.71       6.02      125.40     1.833     0.947

    2028          120.94     118.95     87.29       6.12      127.72     1.833     0.947

    Thereafter +1.83%/yr. +1.83%/yr. +1.83%/yr. +1.83%/yr. +1.83%/yr.                  

    1Inflation rates for forecasting prices and costs-
    2Exchange rates used to generate the benchmark reference prices in this
    table
    3 Natural Gas Liquids is represented by the pentanes plus price


Weighted average historical prices realized by Bellatrix (before
commodity price risk management contracts) for the year ended December
31, 2013, were $3.49/mcf for natural gas, $92.66/bbl for light, medium
gravity crude oil and condensate, $68.41/bbl for heavy oil and
$43.85/bbl for natural gas liquids (excluding condensate).

RESERVES COMMITTEE

Bellatrix has a reserves committee, comprised of independent board
members, that reviews the qualifications and appointment of the
independent reserve evaluators. The committee also reviews the
procedures for providing information to the evaluators. All booked
reserves are based upon annual evaluations by the independent qualified
reserve evaluators conducted in accordance with the COGE (Canadian Oil
and Gas Evaluation) Handbook and NI 51-101. The evaluations are
conducted using all available geological and engineering data. The
reserves committee has reviewed the reserves information and approved
the reserve report.

LAND

As at December 31, 2013, Bellatrix had over 416,630 net undeveloped
acres in Alberta, British Columbia and Saskatchewan.


    Land Statistics                                            

                                           2013            2012

    Average working interest                                   

     Developed                              62%             57%

     Undeveloped                            75%             66%

    Total                                   69%             61%

    Land Holdings1                                             

                                       2013             2012

                                  Gross     Net   Gross     Net

    Developed                                                  

      British Columbia            9,752   2,692   9,752   2,692

      Alberta                   443,780 272,114 373,705 211,967

      Saskatchewan               13,327  12,720  13,327  12,720

      Total                     466,859 287,526 396,784 227,380

    Undeveloped                                                

      British Columbia          107,700  47,521 107,700  47,521

      Alberta                   436,436 360,821 194,158 148,815

      Saskatchewan                8,289   8,289  10,302  10,302

      Total                     552,425 416,631 312,160 206,638

    Developed and Undeveloped                                  

      British Columbia          117,452  50,213 117,452  50,213

      Alberta                   880,216 632,935 567,864 360,782

      Saskatchewan               21,616  21,009  23,628  23,022

    Total                     1,019,284 704,157 708,944 434,017

    1 May not add due to rounding 

OPERATIONS OUTLOOK

Bellatrix continues to focus on growth by development of its large
inventory of Cardium and Mannville assets geological prospects. The
Company also continues to focus on adding Cardium and Mannville
prospective lands.

        --  In 2014 Bellatrix continues to be active drilling with 10-12
            rigs operating in its two core resource plays, the Cardium  and
            Mannville formations  All drilling is conducted using
            horizontal drilling and multi-fracturing technology.  With the
            closing of the acquisition of Angle Energy Inc. ("Angle") in
            December 2013, Bellatrix is the second largest Cardium land
            holder with 338 net sections in the Cardium play.  An initial
            gross budget of $610 million has been set for fiscal 2014
            (including JV partner capital) with a net capital budget of
            $370 million.

        --  Bellatrix processes its Ferrier area gas production utilizing
            seven third party operated midstream Gas Plants.  The capacity
            of the third party infrastructure and plants has become
            constrained due to both Bellatrix's and local industry
            partners' successful drill bit programs. In mid-December 2013
            the midstream operator restricted gas processing capacity
            thereby limiting Bellatrix to 38,000 boe/d.  This restriction
            has not been removed and has been exasperated by two separate
            incidents.  The first was an extended freeze off through most
            of January 2014 in the main plant inlet gathering system
            pipeline for the Brazeau Gas Plant.  Secondly, an electric
            driver failure on the refrigeration train at the Alder Flats
            Gas Plant for most of February reduced plant capacity by 37
            mmcfd of which 15 mmcfd was Bellatrix's share.  The combined
            effect of these restrictions will result in Bellatrix reducing
            its first quarter 2014 and annual 2014 average production
            guidance to +/-36,000 boe/d and 42,500 to 43,500 boe/d
            respectively.  2014 Cash flow forecasts, however, for the
            quarter and year remain unchanged as higher commodity prices
            are expected to offset the aforementioned restricted
            production. To mitigate future disruptions in processing the
            Company's natural gas assets, Bellatrix and the Blaze Gas Plant
            in West Pembina are currently installing a 60 km pipeline to
            feedstock the plant from the Ferrier Area.  The new gathering
            pipeline will be commissioned in early April 2014 providing
            additional plant processing capacity of up to 120 mmcfd.
            Bellatrix has between 5,000 and 6,000 boe/d behind pipe to
            bring onto production as the restrictions are removed.  The
            Company has also initiated construction of a 100% working
            interest Deep Cut Gas Plant in the Alder Flats Area that will
            process 110 mmcfd and is expected to be commissioned on or
            before July 1, 2015.  Plans are underway to potentially double
            the Bellatrix facility to 220 mmcfd in early 2016.

        --  The 2014 net capital budget of $370 million is comprised of
            $250 million drilling and completion costs, $100 million
            facility and infrastructure costs and $20 million land,
            geological and other related costs.  The Company plans to
            drill/participate in 146 gross (76.27 net) wells in 2014
            resulting in 115 gross (65.71 net) Cardium oil and gas wells
            and 31 gross (10.56 net) Mannville condensate-rich gas wells.

        --  As at December 31, 2013, Bellatrix has approximately 416,631
            net undeveloped acres and, including all opportunities, has in
            excess of 1,251 net exploitation drilling opportunities
            identified.

        --  The Company's budgeted 2014 capital program will befunded from
            the Company's cash flows and to the extent necessary, bank
            indebtedness, based on the current economic conditions and
            Bellatrix's operating forecast for 2014.  As at December 31,
            2013, approximately $212.4 million or 42% was undrawn under the
            existing $500 million credit facilities and is available to
            fund Bellatrix's ongoing capital spending and operational
            requirements.

COMMODITY RISK MANAGEMENT CONTRACTS

Bellatrix has the following crude oil and natural gas commodity price
risk management contracts in place for 2014. The conversion of $/GJ to
$/mcf is based on an average corporate heat content rate of 40.8Mj/m(3).

     ____________________________________________________________________
    |   Product |                  Term       |    Volume  |Average Price|
    |___________|_____________________________|____________|_____________|
    |Crude Oil1 |Jan. 1, 2014 to Dec. 31, 2014|6,000 bbls/d|$97.07CDN/bbl|
    |___________|_____________________________|____________|_____________|
    |Natural Gas|Feb. 1, 2014 to Dec 31, 2014 |95.7 mmcf/d |$4.21CDN/mcf |
    |___________|_____________________________|____________|_____________|
    |Natural Gas|Jan. 1, 2014 to Jan 31, 2014 |47.8 mmcf/d |$3.84CDN/mcf |
    |___________|_____________________________|____________|_____________|

    1 Volume excludes crude oil calls for 1,500 bbls/d at $105US/bbl for
    the calendar year 2014; these calls were settled effective February
    2014 for $0.5 million USD.

Based upon fourth quarter December 31, 2013 production volumes of
approximately 32,500 boe/d, annualized for 2014 and reflecting a full
fourth quarter production volumes from Angle, Bellatrix has put in
price protection on approximately 66% of 2014 production volumes, 69%
for the first quarter and 68% for the remaining three quarters of 2014
production volumes. Bellatrix has put in price protection on
approximately 65.8% of 2014 production volumes, 69% for first quarter
and 64.5% for the remaining three quarters of 2014 production volumes.

Bellatrix continues to focus on growth by development of its core
Cardium and Mannville assets utilizing its large inventory of
geological prospects. The Company has developed an inventory of 742 net
remaining Cardium locations, 381 net Notikewin/Falher and 128 other
Mannville locations representing a net remaining investment of $4.97
billion (based on current costs). Bellatrix has approximately 416,631
net undeveloped acres and including all opportunities of approximately
2,000 net exploitation drilling opportunities identified, with capital
requirements of $10.1 billion representing over 30 years of drilling
inventory based on current annual cash flow and costs. The Company
continues to focus on adding Cardium and Mannville prospective lands.

Bellatrix Exploration Ltd. is a Western Canadian based growth oriented
oil and gas company engaged in the exploration for, and the
acquisition, development and production of oil and natural gas reserves
in the provinces of Alberta, British Columbia and Saskatchewan. Common
shares of Bellatrix trade on the Toronto Stock Exchange (“TSX”) and on
the NYSE MKT under the symbol BXE.

All amounts in this press release are in Canadian dollars unless
otherwise identified.

READER ADVISORIES:

CONVERSION: The term barrels of oil equivalent (“boe”) 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 equivalent (6
mcf/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. All boe conversions in this report are derived from
converting gas to oil in the ratio of six thousand cubic feet of gas to
one barrel of oil. 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.

UNAUDITED 2013 FINANCIAL INFORMATION: As Bellatrix plans to announce its audited 2013 financial results on or
about March 13, 2014, certain financial information for the year ended
December 31, 2013 disclosed herein, or used in various calculations
herein, is based on unaudited information and has been utilized by
Bellatrix in this release to facilitate the discussion with respect to
the performance of our capital program. Readers are advised that these
financial estimates are subject to audit and may be subject to change
as a result, and such changes could be material.

ADDITIONAL GAAP MEASURES: This press release contains the term “funds flow from operations”
which should not be considered an alternative to, or more meaningful
than “cash flow from operating activities” as determined in accordance
with generally accepted accounting principles (“GAAP”) as an indicator
of the Company’s performance. Therefore reference to funds flow from
operations or funds flow from operations per share may not be
comparable with the calculation of similar measures for other entities.
Management uses funds flow from operations to analyze operating
performance and leverage and considers funds flow from operations to be
a key measure as it demonstrates the Company’s ability to generate the
cash necessary to fund future capital investments and to repay debt.
The reconciliation between cash flow from operating activities and
funds flow from operations can be found in this press release. Funds
flow from operations per share is calculated using the weighted average
number of shares for the period.

This press release also contains the term net debt. Therefore reference
to the additional GAAP measures of net debt may not be comparable with
the calculation of similar measures for other entities. The Company’s
calculation of net debt includes long-term debt and the net working
capital deficiency (excess). The net working capital deficiency
(excess) excludes short-term commodity contract assets and liabilities,
current finance lease obligation, and current deferred lease
inducements.

NON-GAAP MEASURES: This press release also contains the term of operating netbacks, which
is not a recognized measure under GAAP. Operating netbacks are
calculated by subtracting royalties, transportation, and operating
expenses from revenues before other income. Management believes this
measure is a useful supplemental measure of the amount of revenues
received after transportation, royalties and operating expenses.
Readers are cautioned, however, that this measure should not be
construed as an alternative to net profit or loss determined in
accordance with GAAP as a measure of performance. Bellatrix’s method
of calculating this measure may differ from other entities, and
accordingly, may not be comparable to measures used by other companies.

FORWARD LOOKING STATEMENTS: Statements in this document may contain forward-looking information
including management’s assessment of future plans and operations,
expected 2014 and Q1 2014 average production, reserve estimates,
anticipated additional drilling locations, the total future capital
associated with development of drilling locations and reserves, 2014
capital expenditures and expected amount of total program including
capital to be invested by the JV partner, method of funds thereof and
nature of expenditures, infrastructure and facilities plans, timing
thereof and impact on production and timing of release of 2013
financial results. The reader is cautioned that assumptions used in the
preparation of such information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from those
predicted, a result of numerous known and unknown risks, uncertainties,
and other factors, many of which are beyond the control of the Company.
These risks include, but are not limited to: the risks associated with
the oil and gas industry; commodity prices; risks that the joint
venture transaction will close when expected or at all, and exchange
rate changes. Industry related risks could include, but are not limited
to: operational risks in exploration; development and production;
delays or changes in plans; risks associated to the uncertainty of
reserve estimates; health and safety risks, and; the uncertainty of
estimates and projections of production, costs and expenses. The
recovery and reserve estimates of Bellatrix’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 factors and assumptions which have
been used to develop such statements and information but which may
prove to be incorrect. Although the Company 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 the Company 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 the Company operates; the timely receipt of any
required regulatory approvals; the ability of the Company to obtain
qualified staff, equipment and services in a timely and cost efficient
manner; drilling results; the ability of the operator of the projects
which the Company has an interest in operating the field in a safe,
efficient and effective manner; the ability of the Company to obtain
financing on acceptable terms; that the joint venture transaction will
close when expected and on the terms expected; field production rates
and decline rates; the ability to replace and expand oil and natural
gas reserves through acquisition, development of exploration; the
timing and costs of pipeline, storage and facility construction and
expansion and the ability of the Company to secure adequate product
transportation; future commodity prices; currency, exchange and
interest rates; the regulatory framework regarding royalties, taxes and
environmental matters in the jurisdictions in which the Company
operates; and the ability of the Company to successfully market its
oil and natural gas products. Readers are cautioned that the foregoing
lists of factors and assumptions are not exhaustive. Additional
information on these and other factors that could affect the Company’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), at the Company’s website (www.bellatrixexploration.com). Furthermore, the forward-looking statements contained in this news
release are made as at the date of this news release and the Company
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.

SOURCE Bellatrix Exploration Ltd.


Source: PR Newswire



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