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Press release from Marketwire

BlackPearl Announces Resource Assessment on Its Three Core Properties

Wednesday, November 10, 2010

BlackPearl Announces Resource Assessment on Its Three Core Properties17:30 EST Wednesday, November 10, 2010CALGARY, ALBERTA--(Marketwire - Nov. 10, 2010) - BlackPearl Resources Inc. ("BlackPearl" or the "Company") (TSX:PXX)(FIRST NORTH:PXXS) is pleased to announce the completion and results of an independent resource assessment of the Company's three core properties.BlackPearl retained Sproule Associates Limited ("Sproule"), independent reservoir engineers, to prepare a contingent resource assessment of the heavy oil and bitumen contained in its three core properties. Specifically, Sproule evaluated the Company's Blackrod SAGD project in the Athabasca oil sands region in Alberta, our Onion Lake heavy oil property in Saskatchewan and our heavy oil property at Mooney, in northern Alberta. The intent of the resource studies was to independently assess the future development and resource potential of the Company's major oil assets. John Festival, president of BlackPearl, commenting on the resource study, indicated that "we are pleased to provide our shareholders an independent assessment of the potential of our three core properties. Sproule has estimated over 2 billion barrels of oil initially in place on these properties. Assuming peak production from these properties of about 80,000 barrels of oil per day, and with 749 million barrels of potentially recoverable contingent resource (best estimate) it would take over 25 years to produce the contingent resource at peak production. This report is an important milestone for our Company. The next steps in the development of these projects will be continued primary drilling at Onion Lake, implementation of the first phase of the commercial polymer flood at Mooney and construction of the SAGD pilot at Blackrod. It is important to note that these amounts are in addition to the proved and probable reserves already booked for the Onion Lake and Mooney properties." The following tables summarize certain information contained in the contingent resource evaluation prepared by Sproule. The reports were prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook"). The effective date of the report is September 30, 2010. The following tables do not include the proved and probable reserves previously assigned by Sproule to these properties as disclosed in the Company's Annual Information Form dated February 25, 2010 (the "AIF"), a copy of which is available at www.sedar.com.It should not be assumed that the estimates of recovery, production, and net revenue presented in the tables below represent the fair market value of the Company's contingent resources. There is no assurance that the forecast prices and cost assumptions will be realized and variances could be material. The recovery and production estimates of the Company's contingent resources provided herein are only estimates and there is no guarantee that the estimated contingent resources will be recovered or produced. Actual contingent resources may be greater than or less than the estimates provided here. The contingencies which currently prevent the classification of these contingent resources as reserves consist of further delineation drilling, regulatory applications, preparation of firm development plans and corporate approvals to proceed with development. Once all regulatory and corporate approvals are received and any other contingencies are removed, the resources may then be reclassified as reserves. There is no certainty that it will be commercially viable for the Company to produce any portion of the contingent resources on any of its properties.Summary of Contingent Resource Estimates (1) (2)(7) Gross(6) Heavy Oil//Bitumen Net Present Values of Before Tax Future Net Revenue as of September 30, 2010 Contingent Resources Discounted at0%5%8%10%(MMboe)($million)Low estimate (P90) (3)67315,7156,0333,6472,671Best estimate (P50) (4)74919,2577,0224,1743,039High estimate (P10) (5)83123,0518,1744,8503,542Notes:These volumes are arithmetic sums of multiple estimates of contingent resources, which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should give attention to the estimates of individual classes of resources and appreciate the differing probabilities of recovery associated with each class as explained. Contingent Resources are defined in the COGE Handbook as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. It is also appropriate to classify as Contingent Resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Best estimate (P50) is a classification of estimated resources described in the COGE Handbook as being considered to be the best estimate of the quantity that will be actually recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the best estimate. Low estimate (P90) is a classification of estimated resources described in the COGE Handbook as being considered to be a conservative estimate of the quantity that will be actually recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90% probability that the quantities actually recovered will equal or exceed the low estimate. High estimate (P10) is a classification of estimated resources described in the COGE Handbook as being considered to be an optimistic estimate of the quantity that will be actually recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10% probability that the quantities actually recovered will equal or exceed the high estimate. "Gross" means the Company's working interest share in the contingent resources of bitumen and heavy oil before deducting royalties. The Company has a 100% working interest at Blackrod and Mooney, and a 87.5% working interest at Onion Lake. The amounts included in these tables do not include the volume and value of BlackPearl's proved and probable reserves previously assigned by Sproule to these properties as disclosed in the AIF. Summary of Best Estimate (P50) Contingent Resource – By Property (1)(3) Project Gross(2) Heavy Oil//Bitumen Net Present Values of Before Tax Future Net Revenue as of September 30, 2010 Contingent Resources – Best Estimate Discounted at0%5%8%10%(MMboe)($million)Blackrod61914,6144,8982,7561,934Onion Lake863,5411,6251,087849Mooney441,10249933125574919,2577,0224,1743,039Notes:The estimates of contingent resources (best estimate) and future net revenue for individual properties may not reflect the same confidence levels as estimates of contingent resources (best estimate) and future net revenues for all properties, due to the effects of aggregation. "Gross" means the Company's working interest share in the contingent resources of bitumen and heavy oil before deducting royalties. The Company has a 100% working interest at Blackrod and Mooney, and a 87.5% working interest at Onion Lake. The amounts included in these tables do not include the volume and value of BlackPearl's proved and probable reserves previously assigned by Sproule to these properties as disclosed in the AIF. Pricing Assumptions – Forecast Prices and CostsThe price forecasts and assumptions that formed the basis for the revenue projections in the Sproule assessment was based on Sproule's pricing models as of September 30, 2010. A summary of selected items from these pricing models are set forth below. Year WTI Cushing 40° API Edmonton Par Price 40° APIWestern Canada Select 20.5° API Alberta AECO-C Spot Inflation rate Exchange rate(US$/bbl)(CDN$/bbl)(CDN$/bbl)(CDN$/MMBtu)(%/yr)(US$/CDN$)201075.6079.1269.633.641.50.934201180.5784.4273.454.191.50.934201283.7687.8275.524.821.50.934201386.0990.2974.945.351.50.934201490.2294.6977.656.331.50.934201591.5796.1278.827.301.50.934201692.9497.5780.018.011.50.934201794.3499.0481.228.141.50.934201895.75100.5482.448.281.50.934201997.19102.0683.698.411.50.9342020 98.65103.6084.958.551.50.934Escalation rate of 1.5% thereafterForward-Looking StatementsCertain of the statements made and information contained herein is forward-looking statements and forward looking information (collectively referred to as "forward-looking statements") within the meaning of Canadian securities laws. All statements other than statements of historic fact are forward-looking statements. Forward-looking statements are typically identified by such words as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "potential", "targeting", "intend", "could", "might", "should", "believe" or similar words suggesting future events or future performance. In addition, statements relating to "reserves" or "resources", "contingent resource" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resource described exist in the quantities predicted or estimated and can be profitably produced in the future. In particular, this document contains forward-looking statements pertaining to, and which rely on assumptions as to, without limitation, oil initially in place, the volumes and estimated value of BlackPearl's contingent resource of bitumen and heavy oil, forecasted production levels, future oil and gas prices, capital expenditure programs and operating costs. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. Although we believe that the expectations conveyed by the forward-looking statements are reasonable based on information available to us on the date such forward-looking statements were made, there can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to the Company and its shareholders.Forward-looking statements are based on the Company's current beliefs as well as assumptions made by, and information currently available to, the Company, including, without limitation, information and assumptions concerning anticipated financial performance, business prospects, strategies, regulatory developments, future commodity prices, future production levels, the ability to obtain equipment in a timely manner to carry out development activities, the ability to market oil and natural gas successfully to current and new customers, the impact of increasing competition, the ability to obtain financing on acceptable terms, and the ability to add production and reserves through development and exploration activities. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.The Corporation does not undertake any obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.Barrel of oil equivalents may be misleading, particularly if used in isolation. A barrel of oil equivalent conversion ratio of six thousand cubic feet to one barrel is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a valus equivalency at the wellhead.BlackPearl's Certified Advisor on First North is E. Öhman J:or Fondkommission AB.Company Registration Number: 409596-1FOR FURTHER INFORMATION PLEASE CONTACT: John FestivalBlackPearl Resources Inc.President and Chief Executive Officer(403) 215-8313john.festival@pxx.caORDon CookBlackPearl Resources Inc.Chief Financial Officer(403) 215-8313(403) 265-8324 (FAX)don.cook@pxx.cawww.blackpearlresources.ca