New Zealand Energy Corp. (TSX VENTURE:NZ)(OTCQX:NZERF) (“NZEC” or the “Company”) is pleased to provide an update regarding its plans to develop its oil and gas assets in the Taranaki Basin of New Zealand’s North Island. These include plans for the Tariki, Waihapa and Ngaere petroleum mining licenses (the TWN Licenses”), theWaihapa Production Station and associated pipelines and infrastructure (the “TWN Assets”). The acquisition of the TWN Licenses and the TWN Assets from Origin Energy Resources NZ (TAWN) Ltd.(“Origin”) is subject to the completion of certain conditions precedent described in NZEC’s June 17, 2013 news release. NZEC has created an updated corporate presentation that provides additional details and can be viewed and downloaded on the Company’s website at www.newzealandenergy.com.

Highlights

• Completion of independent study into Mt. Messenger discoveries provides valuable insight for future exploitation strategy
• TWN acquisition closing proceeding
• Extensive post TWN acquisition work program comprising reactivation and re-completion of existing wells in addition to up to eight new wells including four targeting deeper high impact targets.
• Forecast production of 2,300 barrels oil equivalent per day¹ (“boe/d”) exit 2014 (net to NZEC, 81% oil)²
• Forecast cash flow from operations of $26.1 million from end Q3 2013 closing of the TWN acquisition to exit 2014²

Development Program and Forecasts for Taranaki Assets

Completing the acquisition of assets from Origin Energy Resources NZ (TAWN) Ltd. (“Origin”), as updated on June 17, 2013, will be transformative for NZEC, resulting in a fully integrated upstream/midstream company with the potential for cash flow, infrastructure and inventory to support long-term growth. On July 30, 2013, NZEC announced a binding agreement with L&M Energy Limited(“L&M”) whereby L&M will pay NZEC C$18.25 million to form a 50/50 joint venture (“TWN Joint Venture”) to explore, develop and operate the TWN Licenses and the TWN Assets. The parties intend to finalize the definitive agreements shortly with the objective of closing the transaction contemporaneously with closing of the acquisition of assets from Origin (the “TWN Assets Acquisition”). Following closing, NZEC (through its subsidiary companies) will become the operator of the TWN Licenses and the Waihapa Production Station. Decisions regarding exploration, development and operations of the TWN Assets will be made by management committees with equal representation from both NZEC and L&M.

Owning 50% of the TWN Assets will also allow NZEC to optimize development of its existing permits. The gas supply that NZEC has identified to reactivate gas lift and production on existing Tikorangi wells on the TWN Licenses will provide the blending gas required to deliver NZEC’s Copper Moki gas to market, bringing additional cash flow to NZEC from the Copper Moki wells. The Company also plans to build a pipeline to connect the Waitapu-1 well to the Copper Moki gas pipeline, tying Waitapu production into the Waihapa Production Station. As NZEC continues to explore the Eltham and Alton permits, the Company will focus on drill targets that are close to the Waihapa Production Station and associated pipelines, allowing for rapid and cost effective tie-in of both oil and gas production.

NZEC has prepared a detailed financial and production model outlining its exploration and development program for its Taranaki assets that has allowed the Company to forecast the impact of those activities on its production and cash flow. NZEC’s activities planned to the end of 2014 in the Taranaki Basin are outlined in the table below:

Understanding the Mt. Messenger Formation

NZEC has drilled four successful wells drilled to date with a cumulative total production of 257,088 bbls to end June 2013. Initial production rates and declines have varied and these results are consistent with Mt. Messenger experience on adjacent permits.

The Company engaged RPS Group PLC a world leader in well evaluation, to complete an independent reservoir study to better reservoir characteristics and declines using data from Copper Moki, Waitapu and other Mt. Messenger wells in the region. The RPS study concluded that declines are not related to wax buildup or mechanical issues. NZEC has used the study results to prepare composite type curves for Mt. Messenger production and recent proprietary merged 3D seismic in order to enhance the Company’s Mt. Messenger exploitation strategy, which includes:

• Choosing optimally sized targets based in interpretation of the merged 3D dataset
• Reducing costs by drilling multiple wells from each pad and,
• Prioritization of targets close to the Waihapa production Station to expedite tie-in

The Horoi 1 well will target the Mt. Messenger formation in the Alton permit later this year and further Mt. Messenger wells are planned in the 2014 work program.

Closing the TWN acquisition

NZEC continues to make steady progress in closing the TWN acquisition as planned. L&M are contributing $18.25 to the acquisition price which reduces NZEC’s total current and future funding obligations and also reduces NZEC’s net general and administrative costs.

Immediately on closing the TWN acquisition the Company will increase its 2P Reserves by an additional 1.07 million boe with an estimated before tax NPV (10% discount rate) of $31.4 million.

“Our team has worked hard to build this development program, L&M’s investment is a vote of confidence in the team and in our ability to deliver on the program and build value. Will see immediate catalysts, look forward to closing the deal and forging ahead,” said John Proust, Chief Executive Officer and Director of NZEC.

On behalf of the Board of Directors

John Proust, Chief Executive Officer & Director

About New Zealand Energy Corp.

NZEC is an oil and natural gas company engaged in the production, development and exploration of petroleum and natural gas assets in New Zealand. NZEC’s property portfolio collectively covers approximately 2.25 million acres (including permits and acquisitions pending) of conventional and unconventional prospects in the Taranaki Basin and East Coast Basin of New Zealand’s North Island. The Company’s management team has extensive experience exploring and developing oil and natural gas fields in New Zealand and Canada. NZEC plans to add shareholder value by executing a technically disciplined exploration and development program focused on the onshore and offshore oil and natural gas resources in the politically and fiscally stable country of New Zealand. NZEC is listed on the TSX Venture Exchange under the symbol “NZ” and on the OTCQX International under the symbol “NZERF”. More information is available at www.newzealandenergy.com or by emailinginfo@newzealandenergy.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Information

This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of any of the words “will”, “intend”, “objective”, “become”, “transforming”, “potential”, “continuing”, “pursue”, “subject to”, “look forward”, “unlocking” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. This document contains forward-looking statements and assumptions pertaining to the following: business strategy, strength and focus; the granting of regulatory approvals; the timing for receipt of regulatory approvals; geological and engineering estimates relating to the resource potential of the properties; the estimated quantity and quality of the Company’s oil and natural gas resources; supply and demand for oil and natural gas and the Company’s ability to market crude oil, natural gas and; expectations regarding the ability to raise capital and to continually add to reserves and resources through acquisitions and development; the Company’s ability to obtain qualified staff and equipment in a timely and cost-efficient manner; the ability of the Company to obtain the necessary approvals and secure the necessary financing to conclude the acquisition of assets from Origin on schedule, or at all; the ability of the Company to obtain the necessary approvals to conclude the TWN Joint Venture on schedule, or at all; the ability of the Company’s subsidiaries to obtain mining permits and access rights in respect of land and resource and environmental consents; the recoverability of the Company’s crude oil, natural gas reserves and resources; and future capital expenditures to be made by the Company. Actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth below and elsewhere in the document, such as the speculative nature of exploration, appraisal and development of oil and natural gas properties; uncertainties associated with estimating oil and natural gas resources; changes in the cost of operations, including costs of extracting and delivering oil and natural gas to market, that affect potential profitability of oil and natural gas exploration; operating hazards and risks inherent in oil and natural gas operations; volatility in market prices for oil and natural gas; market conditions that prevent the Company from raising the funds necessary for exploration and development on acceptable terms or at all; global financial market events that cause significant volatility in commodity prices; unexpected costs or liabilities for environmental matters; competition for, among other things, capital, acquisitions of resources, skilled personnel, and access to equipment and services required for exploration, development and production; changes in exchange rates, laws of New Zealand or laws of Canada affecting foreign trade, taxation and investment; failure to realize the anticipated benefits of acquisitions; and other factors. Readers are cautioned that the foregoing list of factors is not exhaustive. Statements relating to “reserves and resources” are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources described can be profitably produced in the future. The forward-looking statements contained in the document are expressly qualified by this cautionary statement. These statements speak only as of the date of this document and the Company does not undertake to update any forward-looking statements that are contained in this document, except in accordance with applicable securities laws.

Cautionary Note Regarding Reserve and Resource Estimates

The oil and gas reserve and resource calculations and net present value projections were estimated in accordance with the Canadian Oil and Gas Evaluation Handbook (“COGEH”) and National Instrument 51-101 (“NI 51-101”). The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of six Mcf: one bbl was used by NZEC. This conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on: the analysis of drilling, geological, geophysical, and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Reserves are classified according to the degree of certainty associated with the estimates. Proved Reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable Reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. Revenue projections presented are based in part on forecasts of market prices, current exchange rates, inflation, market demand and government policy which are subject to uncertainties and may in future differ materially from the forecasts above. Present values of future net revenues do not necessarily represent the fair market value of the reserves evaluated. Information concerning reserves may also be deemed to be forward looking as estimates imply that the reserves described can be profitably produced in the future. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause the actual results to differ from those anticipated. Contingent resources are those quantities of oil and gas estimated on a given date to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters, or a lack of markets. Prospective resources are those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. The resources reported are estimates only and there is no certainty that any portion of the reported resources will be discovered and that, if discovered, it will be economically viable or technically feasible to produce.

¹Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

²Mid-case forecasts based on NZEC’s development program and resulting financial and production model. See Forward-looking Statement and Assumptions and Post Acquisition Work Program in NZEC’s updated corporate presentation on our website. Please contact the Company if you are unable to access its website and would like to receive a copy of the presentation.