Griffiths Energy International Provides Update on Investigation into Consulting Contracts

CALGARY, Jan. 15, 2013 /CNW/ - Griffiths Energy International Inc. ("Griffiths Energy" or "the Company") today provided the following update regarding its previously disclosed internal investigation into certain consulting contracts (the "Contracts") entered into by prior management.

The Company's prior management and Board of Directors entered into Contracts with two entities owned and controlled by a foreign public official and his spouse, in the period between August 30, 2009 and February 9, 2011.

The current Griffiths Energy management team and Board, appointed between July 2011 and September 2011, discovered the existence of the Contracts in November 2011. The Company immediately announced that it had commenced an internal investigation into the nature, circumstances and propriety of the Contracts. The rigorous internal investigation was supervised by a special committee of independent directors of the Board and conducted by external legal counsel and a forensic investigative accounting firm. The initiation of the internal investigation was voluntarily disclosed to Canadian and US authorities in November 2011 by the Company, and in May 2012, following conclusion of its internal investigation, Griffiths Energy disclosed that it was voluntarily sharing the results with appropriate authorities.

Griffiths Energy believes it is the first Canadian resource company to have self-reported and conducted such an investigation. Since its voluntary disclosure Griffiths Energy has been cooperating and working with the Royal Canadian Mounted Police, the Public Prosecution Service of Canada ("PPSC") and the U.S. Department of Justice to bring the matter to a close.

Today the Company was charged by the PPSC with one count under section 3(1)(b) of Canada's Corruption of Foreign Public Officials Act in relation to these matters. Griffiths Energy anticipates a near-term negotiated resolution of all matters under review and cannot say more at this time.

"We've worked extensively with the Crown and the RCMP throughout and we anticipate a negotiated resolution in the very near future," said Gary Guidry, President and Chief Executive Officer. "We can't say any more at this time, but will commit to providing more details as soon as a resolution is approved by the Court and made public."

About Griffiths Energy International Inc.

Based in Canada, Griffiths Energy is an international exploration and development company focused on oil and gas exploration, development and production activities in the Republic of Chad, Africa. In 2011, the Company acquired the Production Sharing Contracts ("PSCs") from the government of the Republic of Chad. These PSCs provide exclusive rights to explore and develop reserves and resources over a combined area of 26,103 km² in southern Chad. The PSCs cover two world class oil basins with development opportunity, oil discoveries, and numerous exploration prospects.

SOURCE: Griffiths Energy International Inc.

Gary Guidry
President and Chief Executive Officer
Griffiths Energy International Inc.
+1.403.724.7211
[email protected]

Trevor Peters
Chief Financial Officer
Griffiths Energy International Inc.
+1.403.724.7228
[email protected]

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