HispanicBusiness

ANDERSON ENERGY LTD.

Notes to the Consolidated Financial Statements

DECEMBER 31, 2012 AND DECEMBER 31, 2011

(Tabular amounts in thousands of dollars, unless otherwise stated)

(Unaudited)

1. REPORTING ENTITY

Anderson Energy Ltd. and its wholly-owned subsidiaries (collectively "Anderson" or the "Company") are engaged in the acquisition, exploration and development of oil and gas properties in western Canada. Anderson is a public company incorporated and domiciled in Canada. Anderson's common shares and convertible debentures are listed on the Toronto Stock Exchange. The Company's registered office and principal place of business is 2200, 333 - 7th Avenue SW, Calgary, Alberta, Canada, T2P 2Z1.

The Company is continuing its process to identify, examine and consider a range of strategic alternatives available to the Company with a view to enhancing shareholder value. The strategic alternatives may include, but are not limited to, a sale of all or a material portion of the assets of Anderson, or a drilling joint venture, either in one transaction, or in a series of transactions, the outright sale of the Company, or a merger or other strategic transaction involving Anderson and a third party. The strategic review process is still ongoing and the Company will continue to identify, examine and consider a full range of strategic alternatives. Since January 1, 2012, the Company has sold approximately $74 million of oil and gas properties.

It is Anderson's current intention to not disclose developments with respect to its strategic alternatives process unless and until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is necessary in accordance with applicable law. The Company cautions that there are no assurances or guarantees that the process will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction or the impact it will have on the Company's financial position. The Company has not set a definitive schedule to complete the evaluation.

2. BASIS OF PREPARATION

(a) Statement of compliance. These consolidated financial statements comply with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

The consolidated financial statements were approved and authorized for issuance by the Board of Directors on March 15, 2013.

(b) Basis of measurement. The consolidated financial statements have been prepared on the historical cost basis except for derivative financial instruments, which are measured at fair value. The methods used to measure fair values are discussed in note 5.

(c) Functional and presentation currency. These consolidated financial statements are presented in Canadian dollars, which is the Company's functional currency.

(d) Function and nature of expenses. Expenses in the consolidated statements of operations and comprehensive loss are presented as a combination of function and nature in conformity with industry practice. Transportation expenses, depletion and depreciation, and impairment of property, plant and equipment are presented in separate lines by their nature, while operating expenses and general and administrative expenses are presented on a functional basis. Significant operating and general and administrative expenses are presented by their nature in note 15.

3. SIGNIFICANT ACCOUNTING POLICIES