PER Peruvian Metals Corp

Petro-Reef Resources Ltd. ("Petro-Reef") (TSX VENTURE:PER) - 

Further to its trading halt on December 5, 2011 and its press release on
December 9, 2011, announcing entering into a letter of intent with a private
company on December 2, 2011, Petro-Reef announces that the letter of intent has
terminated due to the failure of the private company to secure financing.


The Board of Directors of Petro-Reef has decided to continue with its review of
strategic alternatives. Emerging Equities Inc. will continue to act as exclusive
financial advisor to Petro-Reef. Concurrent with this course of action
Petro-Reef shall pursue the opportunities identified in the recent
reinterpretation of 36 sections of 3D seismic. 


The new oil well at 9-12-57-26W4 continues to flow at a net 190 boe/d. With the
restart of the 6-7 and 11-7 wells (currently shut in due to allowable
restrictions) the total corporate production in January, 2012 is expected to be
1,050 boe/d. The increased cash flow will allow licencing and drilling of up to
3 wells prior to spring breakup. 


An adjoining operator is planning to drill an offset to Petro-Reef's lands in
the Alexander area that if successful could significantly increase the size of
the pool and the proved reserves on Petro-Reef lands.


The term barrel of oil equivalent may be misleading, particularly if used in
isolation. A boe conversion ratio of 6,000 cubic feet per barrel of natural gas
to barrels of oil equivalence is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. All boe conversions in the report are derived from
converting gas to oil in the ratio mix of 6,000 cubic feet of gas to one barrel
of oil.


Forward-Looking Statements: All statements, other than statements of historical
fact, set forth in this news release, including without Limitation, assumptions
and statements regarding reservoirs, resources and reserves, future production
rates, exploration and development results, financial results, and future plans,
operations and objectives of the Corporation are forward-looking statements that
involve substantial known and unknown risks and uncertainties. Some of these
risks and uncertainties are beyond management's control, including but not
limited to, the impact of general economic conditions, industry conditions,
fluctuation of commodity prices, fluctuation of foreign exchange rates,
environmental risks, industry competition, availability of qualified personnel
and management, availability of materials, equipment and third party services,
stock market volatility, timely and cost effective access to sufficient capital
from internal and external sources. The reader is cautioned that assumptions
used in the preparation of such information, although considered reasonable by
the Corporation at the time of preparation, may prove to be incorrect. There can
be no assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those anticipated in such
statements.

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