In English

• Production averaged 10,550 boe/d in 2012 representing a 28% increase compared to 8,269 boe/d in 2011. This increase is largely attributable to volumes associated with our France acquisition completed in January of 2012. During 2012, annual workover and recompletion activities were undertaken to largely offset natural declines in the region.
• Reserve life index of 17.7 years based on proved plus probable reserves
• Entered France in 1997, acquiring 3,800 boe/d of mature oil properties
  • Increased that production to approximately 6,000 boe/d by 1999 through drilling and workovers and then maintained flat production profile for the next seven years
  • Acquired additional 3,900 boe/d of production in 2006
• Recognized as France’s largest oil producer with operations in two core areas
  • Paris Basin approximately 60 km east of Paris
  • Aquitaine Basin, located 90 km southwest of Bordeaux
• Three of Vermilion's largest oil pools reside in France, Chaunoy in the Paris Basin and Cazaux and Parentis in the Aquitaine Basin
  • Combined initial oil in place of more than 1.1 billion barrels, of which less than 400 million barrels has been recovered
  • Significant potential for increased recoveries from waterflood improvements and enhanced oil recovery operations
• Produce from 19 separate fields including marine operations at the Parentis field in the Aquitaine Basin with 28 production and injection platforms
• Significant inventory of development drilling prospects and growing inventory of exploration prospects.  In January 2012, Vermilion acquired certain working interests in six producing fields located in the Paris and Aquitaine basins in France.  The assets are expected to average approximately 2,200 boe/d of production in 2012, weighted 86% to high quality Dated Brent based crude, and add an estimated 6.7 (1) million boe of proved plus probable reserves (96% crude oil).  Vermilion is also reviewing the growing potential for resource plays in France and is well positioned with significant acreage exposed to the Lias shale oil opportunity in the Paris Basin.
• Established European hub at Parentis head office.  This office will support all European operations following a significant increase in technical staff and capability in 2010.

(1)  Estimated proved plus probable reserves attributable to the assets are evaluated by GLJ Petroleum Consultants Ltd. in a report dated October 14, 2011 with an effective date of December 31, 2011.