CALGARY, ALBERTA--(Marketwire - Oct. 26, 2012) - Diaz Resources Ltd. (TSX VENTURE:DZR) (the "Company" or "Diaz") today released an updated Statement of Reserves Data and Other Oil and Gas Information effective September 30, 2012.

September 30, 2012 Reserves

The Company recorded a 27% decrease in proved plus probable reserves to 814 MBOE at September 30, 2012 compared with reserves of 1,121 MBOE at December 31, 2011. The net present value of the Company's reserves, before tax, using a 10% discount rate, decreased by 35% to $10.4 million, compared with $15.9 million at December 31, 2011.

The decrease in reserves was primarily due to reduced oil prices compared with the prices assumed in the independent reserves evaluation prepared effective December 31, 2011, and a reduction in the value of the Company's Lloydminster properties due to poorer than expected production performance.

The Company's September 30, 2012 reserves were evaluated in accordance with the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities by McDaniel and Associates Consultants Ltd. ("McDaniel"), independent reserves evaluators of Calgary, Alberta, in a report prepared by McDaniel dated October 12, 2012 and effective September 30, 2012 (the "McDaniel Report").

The following summary is based on the McDaniel Report.

Pricing Used in Evaluation

Detailed reserve information is contained in the Company's Statement of Reserves Data and Other Oil and Gas Information, which is available on the Company's SEDAR profile at www.sedar.com.

Diaz is an oil and gas exploration and production company based in Calgary, Alberta. Diaz's current focus is on oil development and exploration in Alberta and Saskatchewan.

ADVISORY: Certain information in this news release, including estimates of the Company's reserves and net present value thereof, constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive.

The estimates of Diaz's reserves and the net present value thereof provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Diaz which have been used to develop such statements and information but which may prove to be incorrect. Although Diaz believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Diaz can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: that Diaz will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities will be consistent with past operations; the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Diaz's reserve and resource volumes; continued availability of debt and equity financing and cash flow to fund Diaz's current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Diaz operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Diaz to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Diaz has an interest in to operate the field in a safe, efficient and effective manner; the ability of Diaz to obtain financing on acceptable terms; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Diaz operates; and the ability of Diaz to successfully market its oil and natural gas products.

Where amounts are expressed on a barrel of oil equivalent (BOE) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). BOE figures may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per 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. References to oil in this discussion include crude oil and natural gas liquids (NGLs).

The forward-looking statements contained in this press release are made as of the date hereof and Diaz undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.