NEWS RELEASE TSX Venture Exchange: PRY PINECREST ENERGY INC. PROVIDES UPDATE January 11, 2012 - Calgary, Alberta - Pinecrest Energy Inc. ("Pinecrest" or the "Company") is pleased to announce its 2011 production exit rate, 2012 capital budget, an increase in its credit facility, a type curve update and corporate hedging information. 2011 Exit Rate

As a result of continued operational success at its Red Earth core area, the Company has exceeded its
2011 exit rate guidance (3,000 - 3,200 bbls/d - 99% light oil) by approximately 13%. Corporate production averaged over 3,500 bbls/d, 99% light oil, since mid-December 2011. Additionally, the Company has drilled and completed 1 (1 net) well in 2011 that is currently being equipped for production and 2 (2 net) wells that are awaiting completion operations.

2012 Capital Budget

The Board of Directors of Pinecrest has approved a 2012 capital budget of $166MM, focused on the drilling, completion and tie-in of wells targeting the Slave Point light oil resource play in the Company's greater Red Earth core area.
The capital and operating assumptions used in the budget are as follows: