About Vermilion

Vermilion's value creation strategy continues to deliver strong rewards for investors.  In 2009 we generated a total return of 38% and over the past five years have generated a compound average annual return of 16.5%.  We believe Vermilion is well positioned to maintain our track record of outstanding performance and are excited about the many opportunities that lie ahead.

2010 will be a significant year for Vermilion as we convert from the income trust model back to the corporate model, which we are targeting to complete by September 2010.  Our intentions are to maintain the current business plan including the current level of monthly distributions to unitholders.  For taxable Canadian investors, the value of the distribution on an after-tax basis will climb by 25% to 40%, as dividends are treated more favourably than the current distributions.  For all other investors, the transition should be seamless.

Vermilion's portfolio continues to improve with well over 5 years of drilling inventory.  Our acquisition of an 18.5% interest in the Corrib natural gas project in Ireland will provide a 30% increase to production and an even larger boost to financial performance when it comes onstream.  Our Netherlands drilling program is yielding exciting results and our Canadian assets continue to provide significant growth opportunities in new Cardium oil and multizone gas resource plays.

Vermilion's exceptional employees contribute strong technical skills and creative vision in a highly collaborative and dynamic environment. Our success is founded on strong core values and supported by a spirited corporate culture. The combination of outstanding people managing strong assets has been a proven recipe for success.

Vermilion is committed to the environmentally responsible development of all our assets and equally committed to those communities where our staff live and work.

I thank all of our Vermilion unitholders for continuing to put your trust in our hands, and look forward to a bright future.