Daiber

At Daiber, in the third quarter of 2013, the Company drilled one (0.5 net) horizontal well targeting the upper Montney at d-C44-C/94-B-16 and in October 2013, the Company drilled one (0.5 net) horizontal well targeting the lower Montney, at d-D44-C/94-B-16. The lower Montney well has been flowing in line for the last seven days at a sustained rate of 14.8 MMcf/d (please refer to the Company's press release dated November 4, 2013). Processing volume at Painted Pony's Daiber 44-C facility has reached maximum capacity from current production from two of the three lower Montney producers on this pad.

Townsend

The 100% working interest lower Montney well at Townsend a-A11-J/94-B-09, which produced intermittently during the third quarter, has resumed production following infrastructure modifications. This liquids-rich well has now been on-stream since October 30, 2013 at an average production rate of 8.0 MMcf/d including an estimated 20 barrels per MMcf of natural gas liquids, representing 1,460 boe/d.

The Company remains pleased with successful drilling results at Townsend and, on November 3, 2013, the Company spudded the first of three 100% working interest wells at Townsend on the 56-H/94-B-09 pad as part of its fourth quarter 2013 drilling program. These wells will target the upper, middle and lower Montney zones and are expected to be completed and tied-in to production facilities in the first quarter of 2014.

Blair

During the third quarter of 2013 at Blair, the Company drilled one (1.0 net) horizontal well targeting the lower Montney at b-C14-F/94-B-16 and one (1.0 net) horizontal well targeting the middle Montney at b-B14-F/94-B-16. These two wells were tied-in and commenced production in November 2013.

As previously announced, the ball-drop completion technology system was employed as an alternative to the conventional perf-and-plug system at the Blair 91-F/94-B-16 pad. The ball-drop well at a-A91-F/94-B-16 produced approximately 575 million cubic feet of natural gas over its initial three month period, whereas the perf-and-plug well at a-91-F/94-B-16 produced approximately 416 MMcf of natural gas over the same time frame. Both 91-F/94-B-16 wells are upper Montney horizontal wells. These results represent a 38% increase in production volumes attributable to the ball-drop system.

LIGHT OIL OPERATIONS

In Saskatchewan, Painted Pony has participated in the drilling of three (1.4 net) wells to date in 2013 including two (0.8 net) Bakken wells at Flat Lake. Painted Pony continues to maintain an inventory of light oil opportunities, focusing on the development of lower-risk projects in southeastern Saskatchewan. A further five (3.1 net) wells are expected to be drilled during the balance of this year. These wells will target a mix of plays, including the Bakken, Frobisher and Midale zones.

FINANCIAL RESULTS

During the third quarter of 2013, Painted Pony achieved funds flow from operations of $12.2 million, while funds flow from operations for the nine months ended September 30, 2013 was $38.9 million, representing an increase of 44% over the same periods in 2012. The Company continues to realize high field operating netbacks from its core properties in both northeast British Columbia and southeast Saskatchewan. The Company achieved a field operating netback of $11.12 per boe in northeast BC, an increase of 24% over the third quarter of 2012. In Saskatchewan, the Company generated a third quarter field operating netback of $56.20 per boe a 38% increase from $40.84 per boe realized in the third quarter of 2012.

Capital Expenditures for the third quarter of 2013 were $39.1 million, which included drilling and completions costs of $25.0 million and facility and equipment costs of $9.1 million. As at September 30, 2013, Painted Pony had a working capital deficiency of $20.7 million.

1. Before royalties

2. This table contains the term "funds flow from operations", which should not be considered an alternative to, or more meaningful than "cash flows from operating activities" as determined in accordance with International Financial Reporting Standards ("IFRS") as an indicator of the Company's performance. Funds flow from operations and funds flow from operations per share (basic and diluted) does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures for other entities. Management uses funds flow from operations to analyze operating performance and leverage and considers funds flow from operations to be a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future capital investment. The reconciliation between funds flow from operations and cash flows from operating activities can be found in "Management's Discussion and Analysis". Funds flow from operations per share is calculated using the basic and diluted weighted average number of shares for the period, consistent with the calculations of earnings per share.

3. Basic per share information is calculated on the basis of the weighted average number of shares outstanding in the period.

4. Diluted per share information reflects the potential dilution effect of options.

5. Including decommissioning expenditures and share-based payments.

6. This table contains the term "working capital (deficiency)". Working capital (deficiency) does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures for other entities. Management calculates working capital (deficiency) as current assets less current liabilities and uses this ratio to analyze operating performance and leverage.

7. Class A shares at December 31, 2011 were re-designated as Common shares effective June 7, 2012.

8. This table contains the term "field operating netbacks". Field operating netback does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures for other entities. Management calculates field operating netback on a per unit basis as oil, natural gas and NGL revenues less royalties and transportation and operating costs.

Painted Pony is a Canadian oil and natural gas exploration company that trades on the Toronto Stock Exchange under the symbol "PPY".

For more information please visit www.paintedpony.ca.

Advisory

Special Note Regarding Forward-Looking Statements

This news release contains industry benchmarks and terms, such as working capital (calculated as current assets less current liabilities), funds flow from operations (calculated by adding to cash flows from operating activities the changes in non-cash working capital and decommissioning expenditures) and field operating netbacks (calculated on a per unit basis as oil, gas and natural gas liquids revenues less royalties and transportation and operating costs), which are not recognized measures under IFRS. These measures are commonly utilized in the oil and gas industry and are considered informative for management and stakeholders. Painted Pony's method of calculating field operating netbacks may not be comparable to that used by other companies. Field operating netbacks should not be viewed as an alternative to cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS. Per unit field operating netbacks reflect revenues less royalties, transportation and operating costs divided by production for the period.

This news release contains certain forward-looking statements and forward-looking information (collectively "forward-looking statements"), which are based on numerous assumptions including but not limited to: (i) drilling success; (ii) production; (iii) future capital expenditures; and (iv) cash flows from operating activities. In addition, and without limiting the generality of the foregoing, the key assumptions underlying the forward-looking statements contained herein include the following: (i) commodity prices will be volatile, and natural gas prices will remain low, throughout 2013; (ii) capital, undeveloped lands and skilled personnel will continue to be available at the level Painted Pony has enjoyed to date; (iii) Painted Pony will be able to obtain equipment in a timely manner to carry out exploration, development and exploitation activities; (iv) production rates in 2013 are expected to show growth from 2012; (v) Painted Pony will have sufficient financial resources with which to conduct the proposed capital program; (vi) Painted Pony's timing estimates for completion and bringing wells onto production will prove correct and (vii) the current tax and regulatory regime will remain substantially unchanged. The reader is cautioned that certain or all of the forgoing assumptions may prove to be incorrect.

Certain information regarding Painted Pony set forth in this news release, including its future plans and operations, anticipated well results, and the planning and development of certain prospects, may constitute forward-looking statements under applicable securities laws and necessarily involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Painted Pony's control, including without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, 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, and stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof. Readers are cautioned that the foregoing list of factors is not exhaustive. Painted Pony's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance 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 that the Company will derive therefrom. 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.

Additional information on these and other factors that could affect Painted Pony's operations and financial results are included in the Company's Management's Discussion and Analysis for the year ended December 31, 2012, and the Company's Annual Information Form for the year ended December 31, 2012 and in reports which are on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Painted Pony's website (www.paintedpony.ca).

The forward-looking statements contained in this document are made as at the date of this news release and Painted Pony 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.

Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of gas ("mcf") to one barrel of oil ("bbl") (6 mcf:1 bbl) is used as an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived by converting natural gas to oil in the ratio of six mcf of gas to one barrel of oil. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion ratio of 6:1 may be misleading as an indication of value. The well test results disclosed in this news release represent short-term results, which may not necessarily be indicative of long-term well performance or ultimate hydrocarbon recovery therefrom.