EXALL ENERGY CORPORATION ANNOUNCES RESULTS FOR THE THREE AND NINE MONTHS
ENDED SEPTEMBER 30, 2010

CALGARY, Nov. 10 /CNW Telbec/ - Exall Energy Corporation ("Exall " or the "Company") (TSX:EE) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2010.  Exall's public filings can all be found at www.exall.com or www.sedar.com.

Highlights:

• A third quarter 2010 production average of 854 boe per day a 222 percent increase over the same quarter in 2009 (productive capability of 1,450 boepd),
• Successfully completed, tied in and placed on production the 02-36 discovery well announced on August 13, 2010,
• Successfully drilled the second of four offset wells to the 10-25 discovery well, in the Marten Mountain B Sand project area, encountering productive oil-saturated reservoir sandstone. The well is expected to be tied in and on production through the Exall facility by the end of the fourth quarter 2010,
• Negotiated and signed a Gas Handling Agreement and Operating Agreement with Canadian Natural Resources Ltd. ("CNRL"),
• Commenced the building of a pipeline from Exall Marten Mountain Battery to the CNRL's Mitsue Gas Pipeline, including the ordering and shipping of the equipment required for the Exall Marten Mountain Battery expansion,
• Received approval from the Alberta Energy Resources Conservation Board (the "ERCB") for the Exall Marten Mountain Battery expansion,
• Received approval from the ERCB for the Exall Pipeline from Exall's Marten Mountain Battery to CNRL's Mitsue Gas Pipeline, and
• Successfully negotiated a new demand credit facility, increasing the Company's revolving demand credit facility from $6.5 million to $15.0 million, and in the process paid down the Company's non-revolving bridge loan facility.

HIGHLIGHTS	Three months ended September 30			Nine months ended September 30
	2010	2009	%  change	2010	2009	%  change
Financial ($)
Gross revenue	5,188,470	1,257,646	313	15,674,073	5,229,007	200
Funds from operations	2,946,010	97,777	2,913	6,927,589	1,336,839	418
Netback per boe (6:1) ($)	44.45	19.67	126	37.97	23.02	65
Funds from operation per share - basic	0.06	0.00	-	0.14	0.03	367
Net income (loss)	965,748	(749,276)	229	1,635,146	(2,336,656)	170
Net income (loss) per share - basic	0.02	(0.02)	200	0.03	(0.05)	160
Capital expenditures, net	4,743,584	985,898	381	12,641,406	1,578,382	701
Net debt	-	-	-	10,491,867	6,315,404	66

Production
	Three months ended September 30			Nine months ended September 30
Daily production	2010	2009	% Change	2010	2009	% Change
Oil (bbl/d)	724	161	350	712	289	146
NGLs (bbl/d)	11	11	0	11	12	(6)
Natural gas (mcf/d)	710	579	23	673	598	13
Total production (boe/d) (6:1)	854	265	222	836	400	109

Production for the third quarter of 2010 averaged 854 boe per day, a 222 percent increase over the same quarter in 2009.  This increase was primarily the result of drilling results from the first nine months of 2010 as the 14-1 and 2-12 wells, which received Waterflood Project status and Good Production Practice (GPP) from the ERCB in January 2010, were shut-in due to gas production constraints. The third quarter of 2010 average daily production of 854 boepd is approximately 600 boepd less than Exall's productive capability, a result of gas conservation constraints imposed upon Exall by the purchaser of the Company's commodities in Mitsue.

On a year over year basis production has increased 109 percent to 836 boe per day in the first 9 months of 2010 due to both the June 30, 2009 approval for Waterflood Project status and Good Production Practice (GPP) received from the ERCB and the successful drilling results from the first nine months of 2010. During August and September of 2010 Exall shut-in the 14-1 and 2-12 wells, replacing production from these wells with production from the 10-25 (formerly 12-25) and its 02-36 wells drilled during 2010.

For the nine months ended September 30, 2010 oil and natural gas liquids accounted for 86 percent of production which is expected to continue to increase as the oil production from additional successful drills in the Marten Mountain area of Alberta are placed on production.

Commodity Pricing
	Three months ended September 30			Nine months ended September 30
Average sales prices realized	2010	2009	% Change	2010	2009	% Change
Oil ($/bbls)	73.34	71.97	2	75.46	56.80	33
NGLs ($/bbls)	48.32	45.77	7	59.46	44.03	36
Natural gas ($/mcf)	3.82	2.83	35	4.46	3.72	20
Weighted average ($/boe) (6:1)	66.02	51.66	28	68.70	47.84	44

The average price received per boe in the third quarter of 2010 increased 28 percent over the same period in 2009 to $66.02. The average price received per boe in the first nine months of 2010 increased 44 percent over the same period in 2009 to $68.70. The price for light, sweet oil at Edmonton in 2010 averaged $74.40 per barrel in the third quarter and $76.59 for the first nine months of 2010, up from an average of $62.33 for the first nine months of 2009.  Alberta natural gas at AECO averaged $3.52 per mcf in the third quarter of 2010, $4.09 per mcf for the first nine months of 2010 and is currently trading at approximately $3.25 per mcf. The Company's Marten Mountain oil production attracts a price approximating the Edmonton light, sweet oil price due to its high quality. The Company has not entered into any commodity hedges to date.

Oil and Gas Production Revenue
	Three months ended September 30				Nine months ended September 30
	2010		2009		2010		2009
	$	%	$	%	$	%	$	%
Oil	4,888,402	94	1,066,527	85	14,670,884	94	4,477,251	86
NGLs	49,822	1	46,963	4	184,315	1	144,696	3
Natural gas	250,246	5	144,156	11	818,874	5	607,060	11
Total	5,188,470	100	1,257,646	100	15,674,073	100	5,229,007	100

Oil and gas revenue in the third quarter of 2010 increased 313 percent to $5,188,470 from $1,257,646 in the same period in 2009 as a result of the 222 percent increase in production, the 28 percent increase in commodity prices received and the shift in production weighting to 86 percent oil and natural gas liquids from 65 percent in 2009. For the nine months ended September 30, 2010 oil and gas revenue increased 200 percent to $15,674,073 with oil and liquids sales contributing 95 percent of the revenue.  The 200 percent increase for the nine months ended September 30, 2010 from the same period in 2009 was a result of the 109 percent increase in production, the 44 percent increase in commodity prices received and the shift in production weighting to 86 percent oil and natural gas liquids from 75 percent in 2009.

Royalties
	Three months ended September 30			Nine months ended September 30
	2010	2009	% Change	2010	2009	% Change
Royalties $	1,234,130	422,551	192	5,486,645	1,701,110	223
Average royalty rate (%)	24	34	(29)	35	33	6
Royalties ($/boe)	15.71	17.36	(10)	24.05	15.56	55

The decreased royalty rates in the third quarter of 2010 were the direct result of the gas constraint at Marten Mountain. As a result of the gas production constraint, Exall's two wells (the 14-01 and the 02-12) which are subject to a 50% royalty rate until January 01, 2011 were shut-in for a significant portion of the third quarter of 2010. The increased royalty rates the first nine months of 2010, as compared with those in 2009, were the result of the higher rates incurred by the high volume horizontal wells in the Marten Mountain area. This increase in royalty per boe reflects the introduction of the new royalty rates in the province of Alberta that came into effect in January 2010 and the higher production rates from the Marten Mountain properties.

Oil and Gas Production Expenses
	Three months ended September 30			Nine months ended September 30
$	2010	2009	% Change	2010	2009	% Change
Operating expenses	460,564	356,168	29	1,523,303	1,011,972	51
Operating expenses ($/boe)	5.86	14.63	(60)	6.68	9.26	(28)

Operating expenses in the third quarter of 2010 increased 29 percent from the same period in 2009, primarily as a result of the 222 percent increase in production. On a per boe basis, operating costs declined 60 percent, to $5.86 per boe due to the fact that the increased production is the result of the higher volume wells in Marten Mountain / Mitsue which are economical to produce. Operating expenses in the first nine months of 2010 increased 51 percent from the same period in 2009, primarily as a result of the 109 percent increase in production. On a per boe basis, operating costs declined 28 percent, to $6.68 per boe. Exall's expectation is that operating costs will continue to decline as infrastructure is completed and additional production is tied in at Marten Mountain.

Operating Netback
Exall realized the following netbacks from oil and gas operations:

	Three months ended September 30			Nine months ended September 30
Netback per boe (6:1) $	2010	2009	% Change	2010	2009	% Change
Production revenue	66.02	51.66	28	68.70	47.84	44
Royalties	15.71	17.36	(10)	24.05	15.56	55
Operating expenses	5.86	14.63	(60)	6.68	9.26	(28)
Operating netbacks ($/boe)	44.45	19.67	126	37.97	23.02	65

Operating netbacks in the third quarter of 2010 increased 126 percent to $44.45 per boe compared to the third quarter 2009 operating netbacks of $19.67 per boe.  This is primarily the result of three factors. First, overall commodity prices improved 28 percent on a third quarter over third quarter basis. Second, decreased royalty rates as a result of the gas production constraint requiring Exall's to shut-in two wells (the 14-01 and the 02-12) which are subject to a 50% royalty rate. Third, operating expenses per boe improved 60 percent due to the fact that the increase in production in the third quarter of 2010 was from higher volume wells in Marten Mountain / Mitsue, which are more economical to produce.

On a nine month period over nine month period basis, 2010 operating netbacks increased by 65 percent to $37.97 per boe.  Again, this is primarily the result of two factors. First, overall commodity prices improved 44 percent on a period over period basis. Second, operating expenses per boe improved 28 percent due to the fact that the increase in production in the nine months ended September 30, 2010 was from higher volume wells in Marten Mountain / Mitsue.

Depletion, Depreciation and Accretion ("DD&A")
	Three months ended September 30			Nine months ended September 30
$	2010	2009	% Change	2010	2009	% Change
Depletion expense	1,372,333	877,580	56	4,151,123	3,912,351	6
Accretion expense	12,634	9,398	34	37,708	28,276	33
Depreciation expense	2,613	257	917	7,764	6,854	13
Total	1,387,580	887,235	56	4,196,595	3,947,481	6
DD&A ($/boe)	17.66	36.45	(52)	18.40	36.11	(49)

Depletion is calculated using the unit-of-production method based on total estimated proved reserves. DD&A for the third quarter of 2010 was $1,387,580 compared to $887,235 for the same period in 2009. DD&A in for the first nine months of 2010 was $4,196,595 or $18.40 per boe compared to $3,947,481 or $36.11 per boe for the same period in 2009. DD&A expense per boe in 2010 have declined from 2009 due to additional reserves being recognized by our independent reserves evaluator, as a result of successful drilling operations at Marten Mountain, Alberta.  The Company's ceiling test calculation, performed as at September 30, 2010, resulted in no additional depletion being recorded.

Administration Expenses
	Three months ended September 30			Nine months ended September 30
$	2010	2009	% Change	2010	2009	% Change
Administration, gross	521,681	348,070	50	1,606,182	1,084,897	48
Overhead recoveries	(134,134)	(30,023)	347	(283,317)	(77,818)	264
Administration, net	387,547	318,047	22	1,322,865	1,007,079	31
Administration ($/boe)	4.93	13.05	(62)	5.80	9.22	(37)

General and administration costs represent the costs required to effectively operate a public company. The increase in costs from 2009 reflects the increased cost of staffing commitments made in conjunction with the increased production and capital expenditures in 2010 as Exall continues to achieve positive results with regard to its drilling program in the Marten Mountain, Mitsue area. General and administration expenses per boe in 2010 have declined from 2009 due to additional reserves being recognized by our independent reserves evaluator, as a result of continued successful drilling operations at Marten Mountain, Alberta. Management is continually monitoring general and administrative expenses to ensure that they are being managed effectively and efficiently.

Stock-Based Compensation Expense ("SBC")
	Three months ended September 30			Nine months ended September 30
$	2010	2009	% Change	2010	2009	% Change
Stock-based compensation	162,882	154,818	5	360,248	406,014	(11)
SBC ($/boe)	2.07	6.35	(67)	1.58	3.72	(58)

Stock-based compensation expense represents the expense for options granted and are recorded over the vesting period of the options. Additional unamortized stock-based compensation costs will be charged to income over the remaining vesting period of the options outstanding as well as any additional options that may be granted in the future.  See note 7 of the September 30, 2010 financial statements for additional details on the options granted and outstanding.

Exall recorded $162,882 or $2.07 per boe of non-cash, stock based compensation expense for the three months ended September 30, 2010 and $360,248 or $1.58 per boe for the first nine months of 2010. In comparison, Exall recorded $154,818 or $6.35 of non-cash, stock based compensation expense for the three months ended September 30, 2009 and $406,014 or $3.72 for the first nine months of 2009.

Interest Expenses
	Three months ended September 30			Nine months ended September 30
$	2010	2009	% Change	2010	2009	% Change
Interest	160,219	63,103	154	413,671	172,007	140
Interest ($/boe)	2.04	2.59	(21)	1.81	1.58	15

Interest costs represent the costs required to effectively finance the capital program of Exall. Exall recorded $160,219 or $2.04 per boe of interest expense for the three months ended September 30, 2010 and $413,671 or $1.81 per boe for the first nine months of 2010. In comparison, Exall recorded $63,103 or $2.59 of interest expense for the three months ended September 30, 2009 and $172,007 or $1.58 for the first nine months of 2009. The increase in interest expenses from 2009 are directly attributable to the significant increase in operations during 2010 from the activity levels in 2009 and the associated debt levels used to finance these activities.

Net Income and Funds from Operations
	Three months ended September 30		Nine months ended September 30
$	2010	2009	2010	2009
Net income (loss)	965,748	(749,276)	1,635,146	(2,336,656)
Basic per share	0.02	(0.02)	0.03	(0.05)
Diluted per share	0.02	(0.02)	0.03	(0.05)
Funds from operations	2,946,010	97,777	6,927,589	1,336,839
Basic per share	0.06	0.00	0.14	0.03
Diluted per share	0.05	0.00	0.12	0.03

Liquidity and Capital Resources
Exall has a revolving demand credit facility with a Canadian chartered bank for $15.0 million that bears interest at the lender's base prime rate plus 1.50 percent which is reviewed periodically by the bank. At September 30, 2010, the Company had approximately $11.0 million outstanding on its revolving credit facility and an approximate working capital surplus, excluding bank indebtedness, of $0.5 million for total net debt of approximately $10.5 million.

During the nine month period ended September 30, 2010, the Company used an increase in bank debt, funds received through its March 2010 brokered private placement, and cash flow from operations to fund capital expenditures and other financial requirements. In 2010, the Company's capital expenditures will be limited by the cash flow available from operations, additional debt or equity as market conditions may allow and potential asset sales if the Company so chooses.

Going Concern Assessment
The consolidated financial statements have been prepared on a going concern basis which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. As at September 30, 2010, the Company had a working capital surplus, excluding bank indebtedness, of $0.5 million.

Fair Value of Financial Instruments
The Company's financial instruments as at September 30, 2010 include cash, accounts receivable, accounts payable and accrued liabilities and the bank indebtedness. The fair value of accounts receivable, accounts payable and accrued liabilities approximate their carrying amounts due to their short terms to maturity. The Company's bank debt bears interest at a floating market rate and accordingly the fair market value approximates the carrying value. The Company's merchant bank debt bears interest at a fixed rate and due to its short term to maturity accordingly approximates the carrying value. Additional information concerning the Company's financial instruments and related risks are in note 12 to the consolidated financial statements.

Capital Expenditures
Oil and gas exploration and development expenditures were $4,743,584 for the third quarter of 2010 and $12,641,406 for the nine month period ended September 30, 2010.  During the third quarter of 2010 the Company re-drilled one well in which the wellbore was lost due to instability and participated in the drilling of 2.0 gross well (1.40 net) in the Marten Mountain / Mitsue area. During the first nine months of 2010 the Company has participated in drilling of 5.0 gross well (3.52 net) in the Marten Mountain / Mitsue area.

Oil and gas exploration and development expenditures were $985,898 for the third quarter of 2009 and $1,578,382 for the nine month period ended September 30, 2009. During 2009 the Company did not participate in drilling of any wells, as all capital expenditures were focused on completing and equipping the Marten Mountain / Mitsue wells for waterflood production.

The Company acquired 1,920 gross (1,267 net) acres of undeveloped land in the Mitsue area during the third quarter of 2010. The Company has acquired 4,480 gross (2,957 net) acres of undeveloped land in the Mitsue area, during the nine month period ended September 30, 2010. As at September 30, 2010, the Company had 18,731 acres (11,100 acres net) of undeveloped land in Canada.

The following table sets forth a summary of the capital expenditures incurred for the periods ended September 30.

	Three months ended September 30			Nine months ended September 30
$	2010	2009	% Change	2010	2009	% Change
Land	211,347	382	55,226	564,298	52,404	977
Geological & Geophysical	7,795	9,212	(15)	114,491	9,212	1,143
Drilling and completions	3,951,524	385,483	925	9,806,406	714,778	1,272
Equipping, Tie-ins & Facilities	572,918	596,747	(4)	2,152,654	797,565	170
Administrative assets	0	3,074	(100)	3,557	4,423	(20)
Exploration & development expenditures	4,743,584	985,898	381	12,641,406	1,578,382	701
Asset retirement obligation	0	9,214	(100)	62,624	9,214	580
Total Capital Expenditures	4,743,584	995,112	377	12,704,030	1,587,596	700

Capitalization
The Company had 52,447,745 shares, 3,331,113 warrants and 4,702,500 options to purchase shares outstanding as at September 30, 2010. At November 09, 2010, the Company had 52,782,745 shares, 2,700,322 warrants and 4,702,500 options outstanding. Additionally, the Company has outstanding, as at November 09, 2010, broker warrants entitling the holder to acquire 295,791 Units (each unit consisting of one common share of Exall and one-half of one share purchase warrant) exercisable at $0.675 per broker warrant.

		Three months ended September 30		Nine months ended September 30
		2010	2009	2010	2009
Weighted average shares outstanding
- Basic		52,378,020	45,921,227	50,488,495	45,909,301
- Diluted		55,262,678	45,921,227	53,373,153	45,909,301

Outlook 
Exall has focused its capital through the summer in development of the Marten Mountain Prospect area located in the Mitsue area of North-Central Alberta. Two wells have been drilled to date offsetting the previously announced "B" Sand discovery drilled by Exall in Q1. One well has been completed and put on stream through the Company-owned pipeline and battery facilities. Completion operations are underway on the second well. Drilling operations are under way on a third offset after which the rig will be utilized to drill two additional wells in the B Sand trend through to year-end. 

Permanent access to the north Marten Mountain "A" Sand extension test well was completed in Q2. A new horizontal lateral was drilled into the reservoir identified by the 10-12 well which had been lost due to wellbore instability. The new horizontal leg has been stimulated with a four-stage fracture treatment and is currently recovering load fluid. The Company also drilled the offsetting 13-7 well utilizing the same drilling rig. Completion operations are planned for the fourth quarter of 2010. Two additional wells are planned through Q1 2011 due to the winter drilling access restrictions. 

The wells drilled this summer have established continued multi-zone sand development with a number of offset drilling opportunities. The ability to continue development of this key property through the summer has allowed Exall to accelerate development plans in the Marten Mountain area.

Exall will also be expanding battery facilities and tying into a gas line in order to facilitate increased production rates. The Company's wells are currently constrained by restrictions on gas flaring and by limits to water injection. Gas tie-in and processing agreements have been executed with the pipeline/plant operator, Canadian Natural Resources Limited ("CNRL"). The pipeline and compressor have been installed and final controls and instrumentation are being delivered with the expected startup of full gas conservation scheduled for mid-November.

An application to provide additional water injection for the Company's waterflood scheme has been approved by the ERCB and the operator of the offsetting scheme will begin injecting additional water on behalf of the Company shortly.

Changes introduced to the New Royalty Framework ("NRF") by the Government of Alberta, including Transitional Royalty rates and drilling incentives, with the objective of alleviating the excessive royalty burden of the NRF and to spur drilling have improved the economics of drilling activity on the Company's lands. The Government of Alberta has made some significant permanent changes in the Modified Royalty Framework ("MRF") which has several features which will directly affect the future of Exall. The most significant of the changes to Exall are:

1. The reduction of maximum royalty rate paid on high-rate oil wells from 50 percent to 40 percent starting in January 2011. This change will have a direct impact on the cash flow of Exall. The two Marten Mountain wells currently producing on GPP have been subject to the 50 percent maximum royalty rate since they went on production. The change improves the netback per barrel, which is reflected in the increased NPV of the reserves per the Reserves Update.
2. Continuation of the 5 percent cap on royalties for the first year or first 50-70,000 barrels of oil, depending on measured depth, as a permanent program. Although this program was already in place, the Government has now made assurances that this will be a permanent feature in the Modified Royalty Framework. After the first 50-70,000 barrels produced new oil wells will be subject to a maximum royalty of 40 percent.
3. Continuation of the Drilling Credits of $200 per meter to the end of its proposed term at April 1, 2011. Exall has made arrangements with other companies to have their credits assigned and collected from royalties paid by Exall in a procedure encouraged by the Provincial Government. This effectively reduces the royalties paid by Exall and provides access to capital for further drilling and development.

Completion of the gas conservation pipeline and facilities will allow a sustainable increase in production rates and cash flow for the Company starting in November 2010. Wells drilled through the summer had been constrained due to gas flaring restrictions. The Company will see the full impact of the added production through the remainder of the year and will be able to bring new production on stream without that constraint. With the continued drilling success Exall has managed to finance activities through cash flow and increased debt. The new Modified Royalty Framework provides the necessary incentive to continue to aggressively exploit the high-productivity light, sweet oil assets the Company holds in the Mitsue area.

The recently completed Midyear Reserves Update has quantified the additional Total Proved and Proved plus Probable Reserves, and Net Present Value established by the Company through the capital program of the first half of 2010. The capital program for the remainder of the year is expected to provide additional production potential and add substantially to the Q4 results for Exall.

Exall is a light oil-weighted company with high operating margins. Starting from a modest production base of light oil and gas, the Company has shown itself capable of setting and achieving ambitious production and cash flow targets. This puts the Company in a favorable position to exploit existing opportunities and potentially take advantage of opportunities that arise. Exall will continue to focus on organic growth through exploitation and expansion of its existing oil producing properties.

About Exall
Exall is a junior oil and gas company active in its business of oil and gas exploration, development and production from its properties in Alberta, British Columbia and Texas. Exall Energy is currently developing the new Mitsue area "Marten Mountain" discovery in north-central Alberta.

Exall Energy currently has 52,782,745 common shares outstanding. The Company's common shares are listed on the Toronto Stock Exchange under the trading symbol EE.

Reader Advisory
This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions, including those relating to results of operations and financial condition, capital spending, financing sources, commodity prices and costs of production. By their nature, forward-looking statements are subject to numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, actual results may differ materially from those predicted. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such factors include fluctuating commodity prices, capital spending and costs of production, and other factors described in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. Such forward-looking statements are made as at the date of this news release, and the Company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.

For the purposes of calculating unit costs, natural gas has been converted to a barrel of oil equivalent (boe) using 6,000 cubic feet equal to one barrel (6:1), unless otherwise stated. The boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore boe may be misleading if used in isolation. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.

For further information:

Please visit Exall Energy's website at: www.exall.com

Renmark Financial Communications Inc.
Maurice Dagenais: [email protected]
Florence Liberski: [email protected]
Tel. : (514 ) 939-3989 or [phone]
www.renmarkfinancial.com