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The Corporation's has filed its unaudited interim condensed consolidated financial statements, and related Management's Discussion and Analysis as of and for the three and six months ended December 31, 2012 with Canadian securities regulatory authorities. These filings are available for review at www.sedar.com.

Director Appointments and Director Retirement

The Corporation is pleased to announce the appointment of two former Shona directors, Mr. Gary R. Petersen and Mr. Gregory D. Elliot, to its Board of Directors. Mr. Petersen is a Managing Partner and co-founder of EnCap Investments LP. Established in 1988, EnCap Investments LP is an investment manager and leading provider of private equity capital to the upstream and midstream sectors of the oil and gas industry. Mr. Elliot founded Workstrings LLC in 1997, a premiere oilfield rental company which was sold to Superior Energy Services in 2001. Mr. Elliot continues as President of Workstrings International, which has become the second largest oilfield rental company globally. The Corporation also wishes to announce the retirement of Mr. Alvaro Barrera from its Board of Directors. Mr. Barrera has enjoyed a long distinguished career in the oil and gas industry in Colombia and has been a director of Canacol since 2008. The directors and management wish to express their sincere gratitude to Mr. Barrera for his contributions to the Board of Directors of Canacol and wish him a happy retirement. Mr. Barrera will remain on the Advisory Board of Canacol.

Canacol is an exploration and production corporation with operations in Colombia, Ecuador, Brazil, Guyana and Peru. The Corporation's common stock trades on the Toronto Stock Exchange and the Colombia Stock Exchange under ticker symbol CNE and CNEC, respectively.

This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur, including without limitation statements relating to estimated production rates from the Corporation's properties and intended work programs and associated timelines. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation cannot assure that actual results will be consistent with these forward looking statements. They are made as of the date hereof and are subject to change and the Corporation assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Information and guidance provided herein supersedes and replaces any forward looking information provided in prior disclosures. Prospective investors should not place undue reliance on forward looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. Other risk factors could include risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities, and other factors, many of which are beyond the control of the Corporation. Other risks are more fully described in the Corporation's most recent Management Discussion and Analysis, which is incorporated herein by reference and is filed on www.sedar.com. Average production figures for a given period are derived using arithmetic averaging of fluctuating historical production data for the entire period indicated and, accordingly, do not represent a constant rate of production for such period and are not an indicator of future production performance. Detailed information in respect of monthly production in the fields operated by the Corporation in Colombia is provided by the Corporation to the Ministry of Mines and Energy of Colombia and is published by the Ministry on its website; a direct link to this information is provided on the Corporation's website. References to "net" production refer to the Corporation's working-interest production before royalties.

Boe conversion - The term "boe" is used in this news release. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of cubic feet of natural gas to barrels oil equivalent is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In this news release, we have expressed boe using the Colombian conversion standard of 5.7 Mcf: 1 bbl required by the Ministry of Mines and Energy of Colombia.



Contacts:
Canacol Energy Ltd.
Investor Relations
214-235-4798
[email protected]
www.canacolenergy.com