PRESS RELEASE

Deer Lake Oil & Gas Inc is pleased to announce that its Werner Hatch #1 well on Exploration Permit 03-105 in the Deer Lake Basin onshore Western Newfoundland has been drilled to a depth of 445m (1460 feet) and has been suspended pending further evaluation, re-entry and possible stimulation and deepening.

Werner Hatch #1 is located adjacent to the Trans Canada Highway some 7 km (4 miles) east of the airport Town of Deer Lake.

Werner Hatch #1 is the first shale gas / shale oil directed well drilled onshore Newfoundland and featured a full onsite mobile core and shale gas analysis facility and dedicated shale gas team from a major international oilfield service company.

Werner Hatch #1 spudded into the organically rich lacustrine Mississippian aged Rocky Brook Formation and encountered a 428 m ( 1404 feet) thick section of alternating organically rich mudstones and turbiditic siltstones and very fine grained sandstones. Elevated gas readings were encountered throughout a significant part of the interval drilled.

Continuous core was taken over the interval from 101m (332 feet) to TD at 445m (1460 feet) for a total cored interval of 344m (1128 feet).

Preliminary analysis of the Rocky Brook Formation encountered in Werner Hatch# 1 indicates that the rocks encountered are supportive of the Company’s Area A shale gas / shale oil play concept in the Cormack Sub-basin of the rift / lacustrine Deer Lake Basin.

Based on seismic and other data, these same rocks occur at greater depths (with indicated greater thickness) in the central part of Area A immediately to the north of Werner Hatch # 1.

A second well is planned during the Q3 of 2010 at the Company’s Admirals Rise #1 location some 7 km (4 miles) north east of Werner Hatch #1 to further test this target area.

A comprehensive analysis of all drilling results from the well including core and electric logs) will now be undertaken.

Deer Lake Oil & Gas Inc is a St. John's, Newfoundland and Labrador based independent oil & gas explorer active in Western Newfoundland both onshore and offshore.

The Company holds a 100% working interest in some 225,000 acres in the Deer Lake Basin all of which is prospective for both unconventional and conventional hydrocarbons.

For further information

Phone 709-579-5050 ; email:  cabot@deerlakeoilandgas.com.

Or consult our website : www.deerlakeoilandgas.com