CALGARY, ALBERTA--(Marketwired - April 24, 2013) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) announces that it applied for and received approval from the Province of Neuquén for a one year extension (the "Extension") to its exploration permit on certain acreage which forms part of the "high risk" Covunco Norte-Sur Block (the "Block"), located in the Province of Neuquén in Argentina. Pursuant to the Extension, the Province of Neuquén:

• approved the investments incurred on the Block by the Company during the last year of US$6,624,300;
  
  
• granted the Company an extension to the term of its exploration permit of one year, effective from April 22, 2013 to April 21, 2014;
  
  
• approved the work program proposed by the Company, consisting of completing the remainder of the previous commitment (US$1,375,700) and the execution of two (2) additional fractures in the COVx-2 well (US$2,000,000), to be completed within the above extension period; and
  
  
• requires that the Company pay a lease fee of approximately 5.8 million ARG pesos (US$1,125,000 at the official exchange rate).
  

The extension was obtained to allow the Company to complete the fracture stimulation and its evaluation prior to the end of the current exploratory period. In conjunction with the Company's current financing and to meet the commitments, Azabache intends to fracture stimulate three separate zones of the Vaca Muerta Formation in the COVx-2 well prior to April 21, 2014.

The Company will also continue to seek a partner its Vaca Muerta development programme.

Further to the Company's press release dated March 18, 2013, the Company announces that Mr. Marcelo Etchebarne has withdrawn from his appointment as a member of the Board of Directors of the Company, due to a previously unknown conflict of interest. The Board of Directors wishes Mr. Etchebarne well in his future endeavours.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the extension of the Company's exploration permit on the Covunco Norte-Sur Block in Argentina. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Azabache, including with respect to the timing and ability of the Company to complete its obligations on that Block. Although Azabache believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward- looking statements because Azabache can give no assurance that they will prove to be correct. Since forward- looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations. The forward-looking statements contained in this document are made as of the date hereof and Azabache undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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