Canoel Completes the Acquisition of Additional Gas Producing Licenses and Exploration Acreage in Italy

June 6, 2013 - Calgary, Alberta - Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE: CIL) is pleased to announce that it has completed the acquisition of several Italian producing and exploration properties after receiving the final approval from the Italian Ministry of Economic Development to the change of ownership. The decree from the Ministry will now be recorded in the Italian Official Gazette.

As initially reported on September 6, 2012, Canoel had entered into a purchase and sale agreement with Medoilgas Italia S.p.A. and Medoilgas Civita Limited, each a subsidiary of Mediterranean Oil and Gas Plc (collectively, "MOG") (AIM:MOG.L - News) to acquire MOG's entire working interest in 13 onshore producing and exploration properties.

The production and exploration assets (the "Assets") comprise (i) 6 operated onshore gas production concessions: Masseria Grottavecchia (20% working interest), San Teodoro (100% working interest), Torrente Cigno (45% working interest), Misano Adriatico (100% working interest), Sant'Andrea (40% working interest) and Masseria Petrilli (50% working interest); (ii) 3 non-operated onshore gas production concessions: Masseria Acquasalsa (8.8% working interest), Lucera (13.6% working interest) and San Mauro (18% working interest) (collectively, the "Gas Licences"); (iii) an operated exploration permit: Montalbano (57.15% working interest) (the "Exploration Permit"); and (iv) and 3 exploration permit applications: Serra dei Gatti (100% working interest), Villa Carbone (50% working interest) and Colle dei Nidi (25% working interest) (the "Exploration Applications").

On completion of the transaction, Canoel paid MOG a nominal sum of EUR100 for the acquisition of MOG's working interests in the Assets and has assumed the liability for future plugging, abandonment and site remediation costs associated with the Assets.

At the same time, Canoel received a cash payment of EUR1,250,000 (approximately $1,650,000) as Medoil's contribution toward future abandonment and remediation costs. Canoel also received an initial advance of EUR104,000 ($137,000) which represents a portion of the revenue MOG received from the Assets during the period between the effective date of the Proposed Transaction (August 24, 2012) and the most recent production statements, net of allowable operating costs, agreed capital expenditure associated with the Assets and certain deposits for future capital expenditures. Additional revenue adjustments up to the final transaction date will be paid to Canoel in due time.

This acquisition represents a unique opportunity for Canoel to substantially augment its Italian operations with a stable production base plus development and exploration opportunities.

Most of the Gas Licenses are located in the southern part of continental Italy in the Regions of Puglia, Basilicata, Molise, Abruzzo and Marche. Last year Canoel was awarded 2 gas producing concessions in this same geographical area by the Italian "Ministero dello Sviluppo Economico". These concessions, Torrente Vulgano and Canaldente, are respectively located in the Regions of Puglia and Basilicata.

The new Exploration Permit and Exploration Applications are also located in the southern part of Italy and cover an area of approximately 1,285 square kilometres.

Production from the acquired Gas Licences currently accounts for approximately 13,800 m3/day equal to 487,384 standard cubic feet/day

Current European pricing metrics offer a premium to North American commodity prices, with current cost per MM Btu being equivalent to approximately $13.50.

While the major contribution to Canoel's business remains its oil production in Argentina, with this acquisition Canoel will further develop its second operations centre in Italy.

Management believes this is a very important step for Canoel as demand for gas in Italy is very strong. Although Italy ranks as the 4th largest producer of oil & gas in Europe, with 8,330 billion m3 (294,500 bcf) of annual natural gas production, the country still imports large quantities of gas from Eastern Europe and North Africa.

Canoel has engaged an independent engineering company to prepare a 51-101 report on the Gas Licences and the Exploration Permits as well as the previously acquired Torrente Vulgano and Canaldente concessions.

Andrea Cattaneo, the company's CEO, states "These new concessions will increase our total revenue and expand our daily operations from crude oil to natural gas in an area where gas prices are very attractive.

The acquisition of these 13 properties will complement Canoel's current Italian portfolio of 2 gas properties and strengthen its operational structure. Our Italian subsidiary, Canoel Italia S.r.l., already operates two gas licences and will now maximize its resources and existing infrastructures in Italy with this strategic addition of production with development and exploration upside.

Furthermore, as described above, Canoel has received a net payment of approximately $1,830,000 (corresponding to approximately $0.022 per share) which, in the current financial markets situation, is very welcomed"

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

Forward-Looking Information

Certain information in this press release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated events and strategies. When used in this context, words such as will, anticipate, believe, plan, mandated, intend, target, and expect or similar words suggest future outcomes.

Forward-looking information in this press release includes, among other things, information relating to: (i) the ability of the Company to operate the Gas Licences; (ii) the concessions increasing the Company's total revenue; and (iii) the sales prices expected to be received for gas produced from the properties subject to the exploration licences.

These statements are based on certain assumptions and analyses made by the Company in light of its experience, current conditions and expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements include, but are not limited to: (i) the ability of the Company to raise the needed capital to operate the operated Gas Licences; and (ii) that the Company will be able to sell the gas produced from the Assets, if any, at current market prices.

Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company's expectations. Such risks and uncertainties include, but are not limited to, risks relating to: (i) whether the Company is able to maintain tenure to Gas Licences and the Exploration Permit; (ii) whether the Exploration Applications will be successful; (iii) the ability of the Company to effectively operate the operated Gas Licences; and (iv) obtaining new financing, as required, to operate and maintain the properties. If any such risks actually occur, they could materially adversely affect the Company's business, financial condition or results of operations. In that case the trading price of the Company's common shares could decline, perhaps materially.

Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management's current expectations, and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Canoel does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Canoel's expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

For further information, please contact:

Jose Ramon Lopez Portillo Andrea Cattaneo

Chairman of the Board President & CEO

Email: info@canoelenergy.com

Telephone: (403) 938-8154

Telefax: (403) 775-4474

This press release is not to be distributed to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities law.