HispanicBusiness

FINDING, DEVELOPMENT AND ACQUISITION COSTS - CARDIUM PROPERTIES ONLY

Year Ended December 31, 2012

                     Finding,                                       Finding,                  Development    Change in                       Development                            &       Future                  Net            &                  Acquisition  Development      Total Additions  Acquisition                        Costs        Costs      Costs       (1)        Costs                       (in thousands of dollars)      (MBOE)(2)      ($/BOE)                  ----------------------------------------------------------2012 Proved      $     14,090 $   (13,330) $      760       659 $       1.152012 P&P               14,090     (11,130)      2,960       949         3.122011 Proved           162,700       34,830    197,530     5,044        39.162011 P&P              162,700       77,370    240,070     8,997        26.683 year average proved               235,420       58,350    293,770     7,989        36.773 year average P&P             $    235,420 $    129,740 $  365,160    14,146 $      25.81(1)   Net Additions are defined as the sum of reserve additions, revisions,      and acquisitions less dispositions.(2)   Barrels of oil equivalent ("BOE") may be misleading, particularly if      used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on      an energy equivalency conversion method primarily applicable at the      burner tip and does not represent a value equivalency at the wellhead.

FD&A costs on a total company basis were indeterminate in 2012, as the Company's proceeds from selling assets exceeded its field capital program expenditures. The Company believes that finding and development costs should include acquisition and disposition costs as these functions are not segregated operationally in the Company, and it is a useful and commonly used reference for shareholders and analysts. In the Cardium play, full cycle three year average FD&A costs including future development capital were $36.77 per BOE on a TP basis and $25.81 per BOE on a P&P basis. This compares to 2012 one year FD&A costs of $1.15 per BOE on a TP basis and $3.12 per BOE on a P&P basis and 2011 one year FD&A costs of $39.16 per BOE on a TP basis and $26.68 per BOE on a P&P basis. The aggregate of the exploration, development and acquisition costs incurred in the most recent financial year and the change during the year in estimated future development costs generally will not reflect total FD&A costs related to reserve additions for that year.

SHARE INFORMATION

The Company's shares have been listed on the Toronto Stock Exchange since September 7, 2005 under the symbol "AXL". As of March 15, 2013, there were 172.5 million common shares outstanding, 14.3 million stock options outstanding, $50.0 million principal amount of convertible debentures which are convertible into common shares at a conversion price of $1.55 per common share and $46.0 million principal amount of convertible debentures which are convertible into common shares at a conversion price of $1.70 per common share. During 2012, no common shares (2011 - 64,400) were issued under the employee stock option plan.

SHARE PRICE ON TSX

                                                         2012           2011High                                           $         0.68 $         1.36Low                                            $         0.21 $         0.35Close                                          $         0.24 $         0.54Volume                                             45,207,571    141,911,562Shares outstanding at December 31                 172,549,701    172,549,701Market capitalization at December 31           $   40,549,180 $   93,176,839----------------------------------------------------------------------------