Junex Inc. (“Junex” or the “Company”) is pleased to announce that Netherland, Sewell & Associates, Inc., (“Netherland Sewell”), an independent reservoir engineering firm based in Texas, has provided their “Best Estimate” of the Prospective Original Gas in Place Resources (“OGIP”) volumes for the Utica Shale on the Company’s Nicolet Permit in the St. Lawrence Lowlands at 8.67 Trillion Cubic Feet (“TCF”). Junex’s 50% interest of this Prospective Resources OGIP volume is 4.33 TCF.

Netherland Sewell, a world renowned independent reservoir engineering firm was commissioned by Junex and partner Canadian Quantum to complete a resources assessment (“the Report”) of the Utica Shale on the Nicolet Permit following the drilling of the Junex St-Gregoire No. 2 and the Junex St-Gregoire No. 3 wells in 2009. Using their expertise in evaluating other shale gas plays, Netherland Sewell’s evaluation includes detailed petrophysical and geologic analysis including a review of the available core and lab analysis data. All results have been prepared in accordance with the regulations pursuant to National Instrument 51-101, Standards for Disclosure for Oil and Gas Activities of the Canadian Securities Administrators. The evaluation does not include any evaluation of the jointly held shallower Lorraine Formation in the Nicolet Permit.

The Netherland Sewell evaluation focused on the Company’s Nicolet Permit and its Utica Shale potential. The Report’s findings are detailed as follows:

In the Report Netherland Sewell evaluated 97% of the 59,090 acre Nicolet Permit and subdivided it into three segments:

– The Northwest Segment on the upthrown side of the Yamaska Fault where the Utica is shallower and slightly over pressured encompasses 12.9% of the Permit; and

– The Central (Medium-Deep) Segment on the downthrown side of the Yamaska Fault where the Utica is deeper and over pressured encompasses 69.1% of the Permit; and

– The Southeast (Deep) Segment on the downthrown side of the Yamaska Fault where the Utica is deepest and over pressured encompasses 18.0% of the Permit.

– Prospective Undiscovered Resources OGIP for the combined segments range from a Low Estimate of 6.95 TCF to a High Estimate of 10.52 TCF, with a Best Estimate of 8.67 TCF for the joint 100% interest.

– For the joint 100% interest, on an acreage basis, the Best Estimate of Prospective Resources OGIP is 126 Billion Cubic Feet per square mile (“126 BCF/section”) in the Deep Segment of the Nicolet Permit, with a Low Estimate of 102 BCF/section and a High Estimate of 153 BCF/section. The weighted average Best Estimate over the entire Permit is 97 BCF/section.

– Junex’s company gross unrisked prospective resources range from a Low Estimate of 147 BCF to a High Estimate of 1,307 BCF over the entire Nicolet Permit. A Best Estimate of a net 436 BCF to Junex’s 50% interest using a 10% recovery factor was made.

Mr. Jean-Yves Lavoie, P. Eng., Junex’s President and Chief Executive Officer, commented, “NSAI’s “Best Estimate” of 4.33 TCF for Junex’s net share of the Prospective OGIP volume is quite significant for our company. Even with a relatively conservative recovery factor of 10%, NSAI’s “Best estimate” of potentially recoverable Net Prospective Resources is set at 436 BCF for Junex’s share of this permit which represents approximately 6.6% of our total net acreage in the combined medium, deeper and structured portions of the Utica Shale play in the Lowlands and represents about 4.1% of our total net acreage portfolio in the combined deeper, structured and shallow to medium-depth portions of the Utica Shale play.”

OGIP is not a defined term within National Instrument 51-101 and is considered equivalent to Petroleum Initially In Place (“PIIP”). Undiscovered resources are those quantities of petroleum estimated on a given date to be contained in accumulations yet to be discovered. Prospective resources are those quantities of petroleum estimated on a given date to be potentially recoverable from undiscovered accumulations. If discovered, they would be technically and economically viable to recover by application of future development projects. Prospective resources have both a chance of discovery and a chance of development. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that the resources will be commercially viable or be able to produce any portion of the resources. The effective date of the Report is December 31, 2009.

No quantitative geologic risk assessment was conducted by Netherland Sewell for this acreage. Geologic risking of prospective resources address the probability of success for the discovery of petroleum this risk analysis is conducted independently of probabilistic estimates of petroleum volumes and without regard to the chance of development. Principal risk elements of the petroleum system include; i. trap and seal characteristics; ii. reservoir presence and quality; iii. source rock capacity, quality, and maturity; and iv. timing, migration, and preservation of petroleum in relation to trap and seal formation.

The prospective resources discussed and shown in the Report are those undiscovered, highly speculative resources estimated beyond reserves or contingent resources where geological and geophysical data suggest the potential for discovery of petroleum but where the level of proof is insufficient for classification as reserves or contingent resources. The unrisked prospective resources are those volumes that could reasonably be expected to be recovered in the event of the successful exploration and development of the Nicolet Permit.

The resources evaluated in the Report are based on estimates of reservoir volumes and recovery efficiencies along with analogy to properties with similar geologic and reservoir characteristics. It will be necessary to revise these estimates as additional data become available. Also, estimates of resources may increase or decrease as a result of future operations.

Junex holds more than 1.5 million gross acres of permit in the St. Lawrence Lowlands. In company’s opinion, more than 720,000 net acres are prospective for Utica Shales. Junex’s permits are located in all areas of the Utica play, including the shallow, medium, deep, and structured parts of the Basin.

About Junex

Junex is a junior oil and gas exploration company that holds exploration rights on more than 6 million acres of land located in the Appalachian basin in the Province of Quebec. The company is in the heart of the Utica Shale gas discovery located in the St. Lawrence Lowlands. As of December 31 2009, Junex has a working capital of approximately 22.5 million dollars. Junex also owns approximately 7.9% of the issued and outstanding shares of Petrolia (TSX VENTURE: PEA) and 1.0% of the issued and outstanding shares of Gastem (TSX VENTURE: GMR). In parallel to its exploration efforts, Junex’s goal is to achieve positive cash flows from its natural brine and drilling services operations.

Forward looking statements

This news release contains certain forward-looking statements. These statements relate to future events or future economic performance of Junex and carry risks, uncertainties and other factors – both known and unknown – that may appreciably affect their respective results, economic performance or accomplishments when considered in light of the content or implications of statements made by Junex. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Junex do not intend and undertake no obligation, to update these forward-looking statements.

SOURCE: Junex inc.