Press Release

EXALL ENERGY CORPORATION ANNOUNCES RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2014

CALGARY, November 17, 2014 Exall Energy Corporation ("Exall" or the "Company") (TSX:EE and TSX:EE.DB) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2014. Exall's public filings can all be found at www.exall.com or www.sedar.com.

Highlights:

 A third quarter 2014 production average of 656 boe per day for a 9 month production average of 795 boe per day,

o Production was negatively affected by the shut in of producing wells due to AER mandated pressure surveys and water injection well downtime due to workovers and a metering error. All of the operating wells are back on production or injection and production is coming back to pre-shut in levels,

 A third quarter 2014 field net back of $36.80 per boe for a 9 month field net back of $43.49 per boe, and

 A third quarter 2014 cash flow from operations of negative $153,000 for a 9 month cash flow from operations of $2,563,000.

SUMMARY OF FINANCIAL RESULTS AND OPERATIONS

EXALL ENERGY CORPORATION

Suite 1700, 8 King Street East, Toronto, ON M5C 1B5 Telephone: (416) 368-3949 Facsimile: (416) 368-5146

400, 715 - 5th Avenue SW, Calgary, AB T2P 2X6 Telephone: (403) 237-7820 Facsimile: (403) 262-4723

Website: www.exall.com

Production for the three month period ended September 30, 2014 averaged 656 boe per day, a 41 percent decrease from the same period in 2013. This decrease was primarily the result of the lack of drilling activity during the first nine months of 2014. Production was also negatively affected by a metering error, which resulted in Exall only injecting approximately 16% of the required injection to maintain pressure and production in the north end of the Mitsue Waterflood. The metering error was fixed in June of 2014 and the Company is just starting to see pressure increases and recovering production numbers.
Production for the nine month period ended September 30, 2014 averaged 795 boe per day, a 33 percent decrease from the same period in 2013. This decrease was primarily the result of well cleanout operations performed during the first quarter of 2014, casing gas compressor issues resulting from the severe cold weather experienced during the first quarter of 2014 and the battery maintenance and well build up reporting requirements for the AER that were performed during the second quarter of 2014, which resulted in three weeks of lost production time. Additionally, production was negatively affected by the metering error described above.

Corporate Developments

Outlook

While Exall continues to seek debt restructuring alternatives, and will maintain this focus until completed, the Capital Expenditure Program for 2014 has been deferred to the last quarter of 2014, subject to available funds. Once resumed the Capital Expenditure Program is slated to continue to explore and develop the North Waterflood Gilwood channel extension of the Central Waterflood channel. Successful drilling on the Central Waterflood / North Waterflood channel extension through the last quarter of 2014 is expected to add 320 boepd net (based on an average working interest of 71.5 percent).
Capital expenditures through the last quarter of 2014 will continue to focus on the "low-hanging fruit" (LHF) opportunities. Short term focus of capital will be on well optimization and stimulation, waterflood implementation, and drilling of the lowest-risk, lowest-cost infill wells in the North Waterflood area. One water injection well conversion was completed and put into service in the third quarter. One additional water injector conversion is planned through the fourth quarter of 2014. A recently completed successful well stimulation has confirmed that well optimizations can improve production significantly in ageing horizontal and slant-hole wells. Exall plans to drill up to 3 gross development wells in the fourth quarter of 2014 with a further 5 gross development wells and 1 gross exploration well in 2015, subject to cash flow from operations. These wells are all high-impact, low risk locations identified through previous drilling and could have a significant impact on the Company's production if successful.

EXALL ENERGY CORPORATION

Suite 1700, 8 King Street East, Toronto, ON M5C 1B5 Telephone: (416) 368-3949 Facsimile: (416) 368-5146

400, 715 - 5th Avenue SW, Calgary, AB T2P 2X6 Telephone: (403) 237-7820 Facsimile: (403) 262-4723

Website: www.exall.com
Continued drilling success on the North Waterflood channel extension will drive production growth on an annual basis through 2014 and 2015.
The Company's Marten Mountain oil production attracts a price based on the average of the daily settlement price of the NYMEX near month Light Sweet Crude Oil contract as it trades, excluding weekends / holidays, for the calendar month of production, plus the weighted average of the Net Energy Index and the NGX index for Light Sweet Crude Oil, plus the one month prior Enbridge Sweet WADF. The Company's oil price received averaged approximately $1.65 less than the posted Edmonton Par price at the wellhead for the first nine months of 2014. Based on the $1.65 differential, Exall expects that its October 2014 price received was $86.45 per barrel. This pricing estimate is approximately $11.53 higher than the posted Western Canadian Select price being received by other entities during these periods.
Exall's current debt level is approximately $59.0 million which includes $26.0 million of revolving demand credit held under a facility with its current senior Canadian lender that bears interest at the lender's base prime rate plus 3.00 percent, $10.0 million of revolving demand credit held under a facility with its current senior Canadian lender that bears interest at the lender's base prime rate plus 3.00 percent, which are reviewed periodically by the lender. The balance of the debt is a $23.0 million Convertible Debenture with a maturity date of March 2017 that pays an annual interest rate of 7.75 percent.
As at September 30, 2014, the Company had a working capital deficit, excluding bank indebtedness, of
$1.7 million. The Company was not in compliance with the working capital covenant at September 30,
2014 and was not in compliance at December 31, 2013 and the violation has not been waived by the bank. The credit facility technically expired on April 30, 2013 and the bank has informed the Company that it is demanding the loan. Exall announced, on November 04, 2014, that in order to complete a previously announced refinancing (see October 6, 2014 press release), it has entered into a forbearance agreement ("Forbearance Agreement") with its current senior Canadian lender. The Forbearance Agreement allows for a monitor to report on, amongst other information, the progress relating to the refinancing under a monitoring agreement ("Monitoring Agreement"), and the initiation of a formal sales process in relation to the Company and its assets. On taking these steps, and provided Exall meets all its obligations under the Forbearance Agreement and the Monitoring Agreement, Exall's senior Canadian lender has agreed to a forbearance period that could extend until up to February 13, 2015.

EXALL ENERGY CORPORATION

Suite 1700, 8 King Street East, Toronto, ON M5C 1B5 Telephone: (416) 368-3949 Facsimile: (416) 368-5146

400, 715 - 5th Avenue SW, Calgary, AB T2P 2X6 Telephone: (403) 237-7820 Facsimile: (403) 262-4723

Website: www.exall.com

Overview

Exall's average daily production for the three month period ended September 30, 2014 decreased 41
percent to 656 barrels of oil per day ("boe/d") from the 1,116 boe/d recorded in the same period of
2013.

Production by Region

M it s ue Wa t e rf lo o d - T o t a ls

Q 4 2 0 12 Q 1 2 0 13 Q 2 2 0 13 Q 3 2 0 13 Q 4 2 0 13 Q 1 2 0 14 Q 2 2 0 14 Q 3 2 0 14

Oil bbls/d 1,041 1,216 1,082 1,028 907 884 707 585

Natural Gas mmcf/d 297 394 343 417 319 318 253 181

Liquids bbls/d 14 19 20 17 17 23 21 39

B o e / d 1,10 5 1,3 0 1 1,16 0 1,114 977 960 770 654

B o w Is la nd H e a v y O il

Oil bbls/d 2 2 2 2 1 2 2 2

Natural Gas mmcf/d - - - - - - - - Liquids bbls/d - - - - - - - -

B o e / d 2 2 2 2 1 2 2 2

C o rpo ra t e T o t a ls

Oil bbls/d 1,042 1,218 1,084 1,030 908 886 709 587

Natural Gas mmcf/d 297 394 343 417 319 318 253 181

Liquids bbls/d 14 19 20 17 17 23 21 39

B o e / d 1,10 6 1,3 0 3 1,16 1 1,116 978 962 772 656

During the third quarter of 2014 production was negatively affected by the lack of capital being reinvested and by the previously announced metering error. The metering error resulted in Exall injecting approximately 16 percent of the water the Company though it was injecting resulting in significant pressure depletion in the north part of the Mitsue Waterflood. The metering error was corrected in June 2014 and Exall has been over injecting during the third quarter with pressures starting to build and production levels starting to increase to levels the Company was initially expecting from the Mitsue North Waterflood.

Results of Operations

Oil and gas exploration and development expenditures were $708 for the three month period ended September 30, 2014. During the third quarter of 2014 the Company participated in the drilling of 0.0 gross oil wells (0.00 net) in the Marten Mountain / Mitsue area. During the third quarter of 2013 the Company participated in the drilling of 0.0 gross oil wells (0.00 net) in the Marten Mountain / Mitsue area.
As at September 30, 2014, the Company had 188,960 acres (140,728 acres net) of undeveloped land in
Alberta, Canada.
Exall realized the following netbacks from oil and gas operations:
Operating netbacks for the three month period ended September 30, 2014 decreased 26 percent to
$36.80 per boe compared to the three months ended September 30, 2013 operating netbacks of $49.70 per boe. This is the result of 1) the 9 percent decrease in commodity prices received for the three months ended September 30, 2014 as compared to 2013 combined with, 2) the royalty expense decrease of 11 percent on a third quarter over third quarter basis and 3) the overall operating expense increase of 73 percent, as a result of the 41 percent decrease in production on a third quarter over third quarter basis.
Operating netbacks for the nine month period ended September 30, 2014 decreased 13 percent to
$43.49 per boe compared to the nine months ended September 30, 2013 operating netbacks of $49.73 per boe. This is the result of 1) the 6 percent increase in commodity prices received for the nine months ended September 30, 2014 as compared to 2013 combined with, 2) the overall royalty expense increase of 25 percent on a third quarter over third quarter basis as a result of wells having produced out their allowable production under the NOWPP and reverting from a 5 percent rate to the Alberta maximum

EXALL ENERGY CORPORATION

Suite 1700, 8 King Street East, Toronto, ON M5C 1B5 Telephone: (416) 368-3949 Facsimile: (416) 368-5146

400, 715 - 5th Avenue SW, Calgary, AB T2P 2X6 Telephone: (403) 237-7820 Facsimile: (403) 262-4723

Website: www.exall.com

Royalty Rate of 40 percent with no new wells being brought on at the 5 percent NOWPP rate, and 3) the overall operating expense increase of 37 percent, as a result of the 33 percent decrease in production on a third quarter over third quarter basis.

Three months ended

September 30,

Nine months ended

September 30,

Netback per boe (6:1) $ 2014 2013 % Change 2014 2013 % Change

Corporate netbacks for the three month period ended September 30, 2014 decreased 108 percent to negative $2.25 per boe compared to the three months ended September 30, 2013 corporate netbacks of $28.18 per boe. This is the result of 1) the operating netback decrease of 26 percent on a third quarter over third quarter basis, 2) the 6 percent increase in the realized loss on financial contracts from the Canadian $99.05 WTI Hedge as the average WTI price in Canadian Dollars was $105.83/bbl versus the swap price of $99.05/bbl, 3) the 229 percent increase in administrative expenses, on a per boe basis, as a result of the flow through share expense and the 41 percent decrease in production in 2014 from the 2013 levels, and 4) the overall interest expense increase of 54 percent on a third quarter over third quarter basis, as a result of the 41 percent decrease in production.
Corporate netbacks for the nine month period ended September 30, 2014 decreased 66 percent to
$11.84 per boe compared to the nine months ended September 30, 2013 corporate netbacks of $34.94 per boe. This is the result of 1) the operating netback decrease of 13 percent on a third quarter over third quarter basis, 2) the 307 percent increase in the realized loss on financial contracts from the Canadian $99.05 WTI Hedge as the average WTI price in Canadian Dollars was $109.02/bbl versus the swap price of $99.05/bbl, 3) the 122 percent increase in administrative expenses, on a per boe basis, as a result of the 325 percent increase in bank fees, the 33 percent decrease in production in 2014 from the 2013 levels and the one time flow through share expense, and 4) the overall interest expense increase of 65 percent on a year to date basis, directly attributable to the increased interest rate being charge by the Company's lender on its revolving loan and the 33 percent decrease in production.

Subsequent Events

Effective November 04, 2014 Exall announced that in order to complete the previously announced refinancing (see October 6, 2014 press release), it has entered into a forbearance agreement ("Forbearance Agreement") with its current senior Canadian lender. The Forbearance Agreement allows for a monitor to report on, amongst other information, the progress relating to the refinancing under a monitoring agreement ("Monitoring Agreement"), and the initiation of a formal sales process in relation to the Company and its assets. On taking these steps, and provided Exall meets all its obligations under the Forbearance Agreement and the Monitoring Agreement, Exall's senior Canadian lender has agreed to a forbearance period that could extend until up to February 13, 2015.

EXALL ENERGY CORPORATION

Suite 1700, 8 King Street East, Toronto, ON M5C 1B5 Telephone: (416) 368-3949 Facsimile: (416) 368-5146

400, 715 - 5th Avenue SW, Calgary, AB T2P 2X6 Telephone: (403) 237-7820 Facsimile: (403) 262-4723

Website: www.exall.com
Exall also advised that the sale transaction previously announced whereby a private company would acquire approximately eighteen percent (18%) of Exall's interest in its oil and gas assets (being approximately a thirteen percent (13%) working interest in and to the Marten Mountain discovery in the Mitsue area, north-central Alberta) for proceeds of $14 Million has not closed. Exall is continuing discussions with the private company but at this time there are no assurances that this transaction will close. The proceeds from this transaction had been earmarked as development funding for its properties and Exall is now evaluating alternative sources of funding.

About Exall

Exall is a junior oil and gas company active in its business of oil and gas exploration, development and production from its properties in Alberta. Exall Energy is currently developing the new Mitsue area "Marten Mountain" discovery in north-central Alberta.
Exall Energy currently has 66,634,854 common shares outstanding. The Company's common shares are listed on the Toronto Stock Exchange under the trading symbol EE. The Company's convertible debentures are listed on the Toronto Stock Exchange under the trading symbol EE.DB.

Reader Advisory

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions, including those relating to results of operations and financial condition, capital spending, financing sources, commodity prices and costs of production. By their nature, forward-looking statements are subject to numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, actual results may differ materially from those predicted. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such factors include fluctuating commodity prices, capital spending and costs of production, and other factors described in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. Such forward-looking statements are made as at the date of this news release, and the Company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.

For the purposes of calculating unit costs, natural gas has been converted to a barrel of oil equivalent (boe) using 6,000 cubic feet equal to one barrel (6:1), unless otherwise stated. The boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore boe may be misleading if used in isolation. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.

For further information, please contact:

Exall Energy Corporation

Please visit Exall Energy's website at: www.exall.com

Renmark Financial Communications Inc.

Bettina Filippone: [email protected] Joshua Ciarrocca: [email protected] Tel.: (416) 644-2020 or (514) 939-3989 www.renmarkfinancial.com

EXALL ENERGY CORPORATION

Suite 1700, 8 King Street East, Toronto, ON M5C 1B5 Telephone: (416) 368-3949 Facsimile: (416) 368-5146

400, 715 - 5th Avenue SW, Calgary, AB T2P 2X6 Telephone: (403) 237-7820 Facsimile: (403) 262-4723

Website: www.exall.com