SHOAL POINT ENERGY EXTENDS TERMS ON WEST NEWFOUNDLAND EXPLORATION LICENCES 1120 AND 1097R

Jan 18, 2013

Toronto, Ontario: Shoal Point Energy Ltd. (“Shoal Point” “SPE” or the “Company”) (SHPNF on OTCQX) (SHP on CNSX) announces that it has been able to successfully extend the time period during which it is allowed to drill exploration wells on each of EL 1120 and EL 1097R. Both of these licences are offshore exploration licences located on the west coast of Newfoundland.

EL 1120

Shoal Point has signed an amending agreement with Ptarmigan Energy Inc. whereby the date by which SPE must drill an exploration well on EL 1120 has been extended from December 31, 2012 to January 15, 2015. In consideration for this extension, Shoal Point has agreed to immediately pay to Ptarmigan the balance of $300,000 which was due to Ptarmigan but originally not payable until the spudding of a well on EL 1120. In addition, Shoal Point has granted to Ptarmigan a warrant which entitles Ptarmigan to purchase up to 500,000 common shares of Shoal Point at a price of $0.06 until January 15, 2015.

EL 1097R

Shoal Point has paid an additional $1 million refundable deposit to the CNLOPB to obtain an extension of the term during which it is allowed to drill exploration wells on EL 1097R by one year until January 15, 2014. The deposit previously put in place was forfeited by Shoal Point as it did not drill an exploration well by January 15, 2013.

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