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FairWest Energy Obtains Extension Under CCAA

CALGARY, ALBERTA -- (Marketwire) -- 01/11/13 -- FairWest Energy Corporation (TSX VENTURE:FEC) ("FairWest" or the "Company") announces that it obtained an Order on January 11, 2013 from the Court of Queen's Bench of Alberta (the "Court") extending the stay of proceedings granting relief to FairWest under the Companies' Creditors Arrangement Act ("CCAA") to February 11, 2013.

On January 3, 2013, the Company fulfilled the conditions precedent in the debtor-in-possession financing agreement (the "DIP Financing") with Supreme Group Inc. (the "DIP Lender") approved by the Court in the Initial Order granted December 12, 2012 (the "Initial Order"). The DIP Financing provides the Compnay with financing in the maximum amount of $700,000 during the CCAA proceedings. In accordance with the Initial Order granted by the Court on December 12, 2012, the DIP Financing ranks in priority to existing security interests of the Company's creditors.

The terms and conditions of a restructuring plan have not yet been determined.

About FairWest Energy

FairWest (TSX VENTURE:FEC) is a Calgary, Alberta based junior oil and gas company engaged in the acquisition, exploration, development and production of crude oil, natural gas and natural gas liquids in the provinces of Alberta and Saskatchewan.


This news release may contain certain forward-looking statements, including, but not limited to, management's assessment of future plans and operations and the Company's default under the Series 1 and Series 2 Debentures. Such statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. 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.

319,654,775 Common Shares Issued

Neither the 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.

FairWest Energy Corporation
Vern Fauth
Chief Executive Officer
(403) 264-4949
(403) 269-1761 (FAX)

FairWest Energy Corporation
Douglas O. McNichol
President and Chief Operating Officer
(403) 264-4949
(403) 269-1761 (FAX)

FairWest Energy Corporation
Marion D. Mackie
Chief Financial Officer
(403) 264-4949
(403) 269-1761 (FAX)

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