Mooncor Oil & Gas Corp. ("Mooncor") (TSX VENTURE:MOO) announced today that it
has entered into a Farmout Agreement with a private Alberta based oil and gas
exploration company (the "Farmee") over its land in the Hamburg area in Alberta
(the "Hamburg Lands"). The Farmout Agreement has been conditionally approved by
the TSX Venture Exchange (the "Exchange") but is subject to final approval by
the Exchange before it becomes effective, which includes shareholder consent.


Under the terms of the Farmout Agreement, the Farmee must drill eleven (11) test
wells on the lands and log and test all formations prospective of containing
petroleum substances under rights held by Mooncor. The Farmee will commence
drilling operations on or before May 30, 2012 at its sole cost, risk and
expense. Upon fulfilling its obligations to drill all eleven (11) test wells,
the Farmee will earn (i) 100% of Mooncor's interest in each of the eleven (11)
drill spacing units subject to a 6% overriding royalty payable to Mooncor
(subject to specific deductions) which is convertible into a 20% undivided
participating interest upon payout, and (ii) 80% of Mooncor's interest in the
remaining Hamburg Lands. The eleven (11) test wells will validate as qualified
land of a licence to extend from the primary term (4 years) to an intermediate
term (additional 5 year extension). The Farmee has until April 30, 2012 to
demonstrate dedicated funds of a minimum $16.5 million in order to meet its
obligations pursuant to the Farmout Agreement.


As a result of the contemplated Farmout Agreement, Mooncor also announces that
it has cancelled the previously announced (November 22, 2011) $5 million
financing, which funds were principally being raised to develop the Hamburg
Lands.


Mooncor further announces that it has negotiated an extension of its two
convertible debentures (the "Debentures"), initially disclosed upon issuance in
2007. As a result of several amendments, the Debentures matured on December 31,
2011 and each has $510,719 in principal outstanding. Subject to the Farmout
Agreement becoming effective, the maturity date of the Debentures will be
extended to March 31, 2013. In consideration for the extension, Mooncor has
agreed to (i) amend the conversion price of the Debentures from $0.225 to
$0.115, (ii) extend the expiry date of the 500,000 warrants (the "Compensation
Warrants") previously issued to each Debenture holder from December 31, 2011 to
March 31, 2013, (iii) amend the exercise price of the Compensation Warrants from
$0.225 to $0.115, and (iv) pay a refinance fee to each Debenture holder of
$50,000. Each Compensation Warrant shall entitle the holder thereof to purchase
one common share (a "Share") in the capital of Mooncor at $0.225 per Share. The
Debentures accrue interest at 10% per annum and are payable on conversion or
maturity, or in advance without penalty. The Debentures are convertible into
units ("Units") of Mooncor at $0.115 per Unit. Each Unit shall consist of one
Share and one-half of one warrant, with each whole warrant entitling the holder
thereof to purchase one Share at $0.10 per Share until March 31, 2013.


Business of Mooncor Oil & Gas Corp.

Mooncor Oil & Gas Corp. is a junior oil and gas exploration and development
company focusing on shale gas opportunities. Mooncor's current emphasis is on
securing a joint venture partner for its proven Muskwa/Duvernay shale gas
project at Hamburg, Alberta. It is also pursuing opportunities to realize
near-term value from its southwest Ontario assets, potentially through a
spin-off into a new entity.


The information in this news release includes certain information and statements
about management's view of future events, expectations, plans and prospects that
constitute forward looking statements. These statements are based upon
assumptions that are subject to significant risks and uncertainties. Because of
these risks and uncertainties and as a result of a variety of factors, the
actual results, expectations, achievements or performance may differ materially
from those anticipated and indicated by these forward looking statements.
Although Mooncor believes that the expectations reflected in forward looking
statements are reasonable, it can give no assurances that the expectations of
any forward looking statements will prove to be correct. Except as required by
law, Mooncor disclaims any intention and assumes no obligation to update or
revise any forward looking statements to reflect actual results, whether as a
result of new information, future events, changes in assumptions, changes in
factors affecting such forward looking statements or otherwise.
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