CALGARY, ALBERTA -- (Marketwire) -- 08/10/10 -- BlackPearl Resources Inc. ("BlackPearl" or the "Company") (TSX: PXX)(FIRST NORTH: PXXS) is pleased to announce its financial and operating results for the three and six months ended June 30, 2010.

Highlights of our second quarter activities include:

--  Oil and gas production averaged 7,163 boe/day, a 39% increase over Q2
    2009 and a 7% increase over Q1 production volumes;
--  Revenues increased 55% to $34.3 million compared to Q2 in 2009; Cash
    flow from operations increased 76% to $13.9 million compared with $7.9
    million in Q2 2009;
--  Operating efficiency improvements resulted in lower production expenses
    and general and administrative costs;
--  Successfully completed several non-core property dispositions which has
    resulted in net proceeds of $19.2 million during the first six months of
    2010;
--  Strengthened the balance sheet with an equity offering of 10.3 million
    common shares; working capital sits at $97.4 million and no debt;
--  Active second half planned with over 60 wells to be drilled primarily at
    Onion Lake and major facility construction projects at Blackrod and
    Mooney.

John Festival, President of BlackPearl, commenting on Q2 2010 activities indicated that, "We had a relatively quiet second quarter in terms of new activity due to spring break-up and wet weather conditions. However, we will be very active the remainder of the year on our three core areas. Short-term production growth will come from continued development drilling at Onion Lake while we proceed with construction of the commercial polymer flood at Mooney and the SAGD pilot at Blackrod. During the second quarter we continued to optimize production from our new wells at Onion Lake with overall Company production averaging in excess of 7,100 boe/day. Third quarter production will be modestly impacted by recent asset dispositions but we are confident that our planned second half activities will allow us to reach our 2010 exit production target of 8,000 - 8,500 boe/day."

Property Review

Blackrod SAGD Project

BlackPearl owns 100% of the Blackrod property as a result of acquiring, earlier this year, the 20% working interest held by Serrano Energy Ltd. We are waiting on regulatory approvals before we commence construction of the facilities for the single well pair SAGD pilot. These approvals are expected later this year. Engineering and design work on the steam and water handling facilities for the pilot are on-going. Total capital costs of the pilot facilities and wells, including construction of a 31 kilometer all weather road to the facility site, are estimated to be approximately $25 million. We anticipate initiating steam injection during the first quarter of 2011.

Onion Lake

No new drilling activity occurred during the second quarter due to wet ground conditions from spring-breakup and heavy rains in Saskatchewan. Development drilling will begin in the third quarter with a planned 60 well drilling program. This program should be completed before year-end. During the second quarter the Company completed connecting last fall's drilling sites into its fuel gas system which allowed us to reduce operating costs during the quarter. Over the next three to five years we plan to drill over 200 wells and then convert a portion of the Onion Lake field to thermal (SAGD) recovery.

Mooney

Engineering and design work on the water and chemical handling facilities for the ASP flood (Alkali Surfactant Polymer) continued during the second quarter. We anticipate receiving regulatory approval from the ERCB for phase 1 of the commercial ASP flood during the third quarter. Once we receive these approvals we will commence field construction of the facilities and we expect to be in a position to start ASP injection early in 2011.

In addition, earlier this year, we made an application to the Alberta Department of Energy for lower EOR royalties for the project. We expect to receive this ruling during the third quarter. If approved, the initial royalty rate on the ASP flood project is expected to be approximately 10%. This compares favourably to the current royalty rate on conventional Mooney production of 23% and the estimated 35 - 40% we would pay on ASP flood production without any royalty relief.

Sale of Properties

During the first half of 2010, BlackPearl sold certain non-core oil and gas properties for $19.2 million. At the time of the sale, these properties were producing approximately 700 boe/day. The assets sold were gas properties in southern Alberta and a heavy oil property in Saskatchewan. We intend to continue selling our non-core oil and gas assets over the next two or three years.

Production

Oil and gas production for the three months ended June 30, 2010 was 7,163 boe/day, a 39% increase compared to the same period in 2009. It also represents a 7% increase from Q1 production in 2010 of 6,685 boe/day. The increase is attributable to development drilling activity at Onion Lake last fall and in the first quarter this year.

Production in the third quarter will be slightly impacted by producing property asset dispositions that occurred during the first half of 2010. However, ongoing development drilling at Onion Lake should result in our year-end exit production reaching 8,000 - 8,500 boe/day. Current production is approximately 6,800 boe/day.

                                 Three months ended        Six months ended
                                            June 30,                June 30,
                            -----------------------------------------------
(Boe/day)                          2010        2009        2010        2009
                            -----------------------------------------------
Onion Lake                        5,098       2,063       4,702       2,115
Mooney                              980       1,424       1,062       1,320
Ear Lake                            316         461         340         447
Salt Lake                           253         416         270         396
Long Coulee/Little Bow              368         426         385         446
Other                               148         380         166         615
                            -----------------------------------------------
                                  7,163       5,170       6,925       5,339
                            -----------------------------------------------

Financial Results

Oil and gas revenues increased 55% in the second quarter 2010 to $34.3 million compared with $22.1 million in Q2 2009. The increase is attributable to higher oil production volumes and higher crude oil prices. The higher wellhead price reflects stronger WTI oil prices in 2010 (US$78.03/bbl vs US$59.62/bbl), partially offset by wider heavy oil differentials (18% differential in 2010 compared with 13% in 2009) and a stronger Canadian dollar compared to the US dollar (1.028 in Q2 2010 compared with 1.167 in Q1 2009). Revenues are down 6% from the first quarter this year primarily as a result of wider heavy oil differentials.

Operating costs decreased significantly to $14.31 per boe in Q2 2010 compared to $17.54 per boe in Q1. New heavy oil wells tend to have higher initial expenses due to increased sand production, increased fuel costs until wells are tied into the fuel gas system, and increased emulsion trucking and treating costs. These initial costs are reduced after several months of production from the new wells.

Cash flow from operations (before working capital adjustments) increased 76% in Q2 to $13.9 million compared to $7.9 million for the same period in 2009.

Financial and Operating Highlights

---------------------------------------------------------------------------
                                 Three months ended        Six months ended
                                            June 30,                June 30,
                                   2010        2009        2010        2009
---------------------------------------------------------------------------

Daily production / sales
 volumes (1)
 Oil (bbl/d)                      6,515       4,167       6,230       4,294
 Natural gas (mcf/d)              3,890       6,017       4,174       6,271
 Combined (Boe/d)                 7,163       5,170       6,925       5,339

Product pricing ($)
 Crude oil - per bbl              55.03       53.33       59.18       42.40
 Natural gas - per mcf             3.97        3.51        4.53        4.32
 Combined - per Boe               52.58       47.07       56.40       39.22

($000's, except per share and Boe
 amounts)
Revenue
Oil and gas revenue - gross      34,274      22,143      70,703      37,898

Royalties ($/Boe)                 13.60       10.74       14.53        8.20
Transportation costs ($/Boe)       1.00        1.46        0.94        2.06
Operating costs ($/Boe)           14.31       12.48       15.86       16.60

Net income (loss) for the
 period                         (10,276)    (10,889)    (18,329)    (31,405)
 Per share, basic and
  diluted                         (0.04)      (0.03)      (0.07)      (0.14)

Cash flow from operating
 activities, before working
 capital adjustments             13,926       7,910      28,955       6,106

Capital expenditures              5,687         932      37,870       4,079

Working Capital, end of
 period                          97,440      56,794      97,440      56,794
Long term debt                        -           -           -           -

Shares outstanding, end of
 period                     272,845,386 261,684,050 272,845,386 261,684,050

(1) Boe amounts are based on a conversion ratio of 6 mcf of gas to 1 barrel
    of oil. BOEs may be misleading, particularly if used in isolation. A
    Boe conversion ratio of 6 mcf: 1 barrel is based on an energy
    equivalency conversion method primarily applicable at the burner tip
    and does not represent a value equivalency at the wellhead.

The 2010 second quarter report to shareholders, including the financial statements, management's discussion and analysis and notes to the financial statements are available on the Company's website (www.blackpearlresources.ca) or SEDAR (www.sedar.com).