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Press release from Marketwire

Fairborne Announces Initiation of Strategic Review Process

Thursday, March 15, 2012

Fairborne Announces Initiation of Strategic Review Process00:06 EDT Thursday, March 15, 2012CALGARY, ALBERTA--(Marketwire - March 15, 2012) - Fairborne Energy Ltd. (TSX:FEL) ("Fairborne" or the "Company") announces that its Board of Directors has initiated a process to identify, examine and consider strategic alternatives with the view to enhancing shareholder value. Strategic alternatives may include, but are not limited to, sale of the corporation, merger or other business combination, recapitalization, sale of all or a portion of the Company's assets, or any combination thereof, continued execution as its business plan, among all other alternatives.The Board of Directors believes that the Company's shares trade at a significant discount to the value of the underlying assets, especially given its high-quality Wilrich gas, high netback Sinclair oil, recently announced condensate rich Cardium wells and associated inventory at Harlech and approximately $550 million in tax pools.In connection therewith, the Board of Directors has established a special committee comprised of independent directors to oversee the process and which intends to retain a financial advisor to assist the Special Committee and the Board of Directors with this process.It is the Company's current intention not to disclose developments with respect to the strategic review process until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate. The Company cautions that there are no assurances or guarantees that the process will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction. The Company has not yet set a definite schedule to complete its evaluation or process.Forward-Looking Statements:Certain information set forth in this press release, contain forward-looking statements including management's assessment of future plans regarding the strategic initiation process. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Fairborne's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, delays resulting from or the inability to obtain required regulatory approvals, inability to retain and delays in retaining drilling rigs and other services, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, ability to access sufficient capital from internal and external sources and risks related to satisfying the conditions to closing of the Clive disposition. The foregoing list is not exhaustive. Additional information on these and other risks that could affect Fairborne's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( www.sedar.com ), or at Fairborne's website ( www.fairborne-energy.com ). Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of Fairborne could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Fairborne will derive therefrom. Fairborne disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.FOR FURTHER INFORMATION PLEASE CONTACT: Steven R. VanSickleFairborne Energy Ltd.President and Chief Executive Officer403-290-7759403-290-3216 (FAX)svansickle@fairborne-energy.comORAaron G. GrandbergFairborne Energy Ltd.Chief Financial Officer403-290-3217403-290-3216 (FAX)agrandberg@fairborne-energy.comwww.fairborne-energy.com