CALGARY, ALBERTA--(Marketwire - March 26, 2012) -

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

WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or "the Company") has made a major oil discovery in the Oligocene reservoir at the Kurdamir-2 exploration well in the Kurdistan Region of Iraq.

The Kurdamir-2 well has reached the intermediate casing depth of 2,812 metres, and has drilled through the Oligocene interval. Wireline logs indicate a porous zone of 140 metres thickness within the Oligocene interval, between 2,422 and 2,562 metres, all of which is hydrocarbon bearing. Within this hydrocarbon zone, well log data indicates 22 metres of gross natural gas pay above 118 metres of gross oil pay. No evidence of water has been encountered within the Oligocene interval.

"We are excited to learn that the Kurdamir and adjacent Topkhana structures have a common oil leg in the Oligocene reservoir with the potential of containing a giant oil and gas field. We're even more excited by the fact that we don't yet know the full extent of the resources that the Oligocene, alone, contains," said Simon Hatfield, WesternZagros's Chief Executive Officer. "Our 100% drilling success rate continues with this major oil discovery. The Kurdamir-2 discovery is the third high-impact discovery on our Blocks in ten months and is an important confirmation of our queue of high-quality, light oil exploration opportunities. In particular, our view is that this discovery significantly improves the oil potential of the deeper, as yet undrilled reservoirs in Kurdamir-2 and also those prospects adjacent to Kurdamir on our Garmian Block."

When the well reached a depth of 2,477 metres, a drill stem test was conducted of the open hole from the base of the 13 5/8" liner at 2,315 metres to 2,477 metres, which included 55 metres of the Oligocene porous zone. This test was conducted across the interpreted gas-oil contact at 2,444 metres and tested 22 metres of gas pay in contact with 33 metres of oil pay. The test achieved a flow rate of 7.3 million cubic feet per day of gas and a stabilized flow rate of 950 barrels per day of 47 degree API mixture of light oil and condensate over the final seven hours of the main flow period. This rate was achieved through a 56/64 inch choke at an average flowing well head pressure of 650 pounds per square inch and without any stimulation. There was no observed decline and no formation water was recovered during the testing. The deeper Oligocene oil pay will not be tested at this time due to time constraints, as the well is required to drill and evaluate the deeper Cretaceous by the end of June 2012. The Company interprets these results as an additional successful confirmation of a significant oil column underlying the gas cap in the Oligocene reservoir. (The first confirmation was provided in Kurdamir-1 as disclosed in the Company's news release of December 16, 2010.)

The Company interprets that since the test was conducted across the gas-oil contact, and the fact that gas flow impedes oil flow, the results do not represent the true oil rate potential of this interval. According to analysis by an independent third party engineering expert, the 33 metres of oil pay tested to date is capable of flowing at rates of 4,000 barrels per day if isolated from the gas pay and stimulated. The Company is working with the operator, Talisman (K44) B.V. ("Talisman"), to examine options for additional cased hole testing focused on the full 118 metres of gross oil pay in the Oligocene after the well has met the PSC commitments. The co-venturers are also planning a 3D seismic program and a further appraisal well to help determine the ultimate size of the Oligocene reservoir.

These interim results from the Kurdamir-2 well are significant for two      
reasons.                                                                    

1.  The 327 metres of Oligocene hydrocarbon column that was proven in the
    Kurdamir-1 well, has now increased significantly to at least 420 metres
    (i.e. from the top of the Oligocene reservoir in Kurdamir-1 well at
    2,142 metres to the base of the gross oil pay in the Kurdamir-2 well at
    2,562 metres.) As no oil-water contact has been encountered in Kurdamir-
    2, the maximum thickness of the oil column is not yet known. 
2.  The bottom of the known oil column extends down to at least 2,562
    metres, which is significantly deeper than the limit of closure of the
    Kurdamir structure as mapped from seismic data. This finding, in turn,
    supports the observation that the Oligocene reservoir is involved in a
    considerably larger trap and that Kurdamir and the neighbouring Topkhana
    structure share a common oil leg.