MOLOPO ENERGY CANADA LTD. ANNOUNCES INITIAL PUBLIC OFFERING

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, Dec. 24 /CNW/ Molopo Energy Canada Ltd. ("Molopo" or the "Company") is pleased to announce that it has filed today a preliminary prospectus with the securities regulatory authorities in each of the provinces of Canada excluding Québec in connection with a proposed initial public offering (the "Offering") of its common shares (the "Common Shares") and a secondary offering of Common Shares by Molopo Energy Holdings Ltd., a wholly-owned subsidiary of Molopo Energy Limited, to be offered for sale on a "best efforts" basis through a syndicate of agents to be led by Macquarie Capital Markets Canada Ltd.

A copy of the preliminary prospectus, which contains important information relating to the Offering, is available on the SEDAR website at www.sedar.com.  The preliminary prospectus is subject to completion or amendment.  There will not be any sale or acceptance of an offer to buy the Common Shares until a receipt for the final prospectus has been issued.  Completion of the Offering is subject to and conditional upon the receipt of all necessary approvals, including regulatory approvals. 

This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.  The Common Shares have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or the securities laws of any state in the United States and may not be offered or sold in the United States, except in transactions exempt from registration under the U.S. Securities Act and under the securities laws of any applicable state. 

Neither this press release nor the preliminary (or final) prospectus constitute offers to any person in Australia to whom disclosure is required under Chapter 6D of the Corporations Act 2001 (Cth).

About the Company

Molopo is a petroleum exploration and production company focused on the exploration, appraisal, development and production of oil in the Western Canadian Sedimentary Basin.  The Company's principal properties consist of oil assets in the Spearfish and Bakken formations located in the provinces of Manitoba and Saskatchewan, respectively.

Forward Looking Information

This press release contains certain forward-looking statements.  These statements relate to future events or the Company's future performance.  All statements other than statements of historical fact are forward-looking statements.  The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "predict" and "potential" and similar expressions are intended to identify forward-looking statements.  These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including, without limitation, those listed under the headings "Notice to Investors - Special Note Regarding Forward-Looking Statements" and "Risk Factors" in the Company's preliminary prospectus dated December 23, 2010 relating to the Offering.  No assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.  These forward-looking statements are made as of the date of this press release and the Company does not undertake to update any forward-looking statements that are contained in this press release, except in accordance with applicable securities laws.

For further information:

R.L. (Monty) Bowers
President and Chief Executive Officer
[phone]
[email protected]

Scott Greenshields
Vice President, Finance and Chief Financial Officer
[phone]
[email protected]