Mr. Simon Tam, an independent director of Xemplar Energy Corp. and Chairman of the Special Committee, has issued the following response to October 31, 2012 release by Mr. Ron Mitchell, regarding the circumstances under which the Board has removed Messrs. Mitchell and Gerry Pallotta from the Special Committee.

The Special committee was formed by the board on October 18, 2012 for the specific purpose of directing the company's response to a shareholder requisition received from Fursa Master Global Event Driven Fund LP. The requisitions' objective is to call a shareholders meeting to remove Messrs. Mitchell and Pallotta from the Board and to elect new directors.

At the time the special committee was formed, the board was advised by legal counsel that, despite Messrs. Mitchell and Pallotta being the targets of the Requisition, they were not in conflict in voting themselves to and serving on the Special Committee. October 19, 2012, Mr. Tam obtained independent legal advice which contradicted that provided to the Board the previous day.

Specifically, Mr. Tam was advised by his independent counsel to seek reconstitution by the Board of the Special Committee on the basis that Messrs. Mitchell and Pallotta were precluded by their conflict of interest from serving on the Special Committee. As a consequence of Mr. Tam's actions, the company's board on October 25, 2012, reconstituted the Special Committee, with Mr. Simon Tam appointed as the sole member of that Committee.