Quetzal Energy Ltd. Spuds Flami-1 Well and Announces Shares for Services, Resignations and Appointments of Directors, and Adoption of Option Plan

TORONTO, ONTARIO--(Marketwire - April 23, 2012) - Quetzal Energy Ltd. (TSX VENTURE:QEI) ("Quetzal" or the "Company") is pleased to announce that NCT Energy Group C.A. Colombia, as official Operator of the LLANOS 27 Block, along Quetzal and its partners, have commenced drilling the Flami #1 well on the Llanos 27 Block in the Llanos Basin of Colombia on April 23, 2012. The well is being drilled with the Saxon 132 1,500 horsepower rig and has a planned total depth of 10,000 feet and drilling is expected to take approximately 35 days. The well is programmed to test the hydrocarbon potential of the Mirador and Une formations with secondary targets being the Carbonera and Gacheta formations. The gross budget for drilling the well is US$10 million with a testing budget of US$4 million. The Company is paying 50% of the gross amount to earn a private participating interest of 45.275% before payout and 34.25% after payout.

Quetzal also announces the resignations of Mr. Steven Austin and Mr. Kevin O'Connor as directors of the Company. The Company wishes to thank Mr. Austin and Mr. O'Connor for their service. The Company is pleased to announce the appointment of Mr. Steve VanSickle and Mr. Doug Manner as directors of the Company. Mr. VanSickle has over 20 years of experience in the Canadian and international oil and gas industry and is currently the President, Chief Executive Officer and a Director of Fairborne Energy Ltd. (a TSX-listed company) and the lead independent director of CUB Energy Inc. (a TSXV-listed company). Mr. Manner has over 35 years of experience in the Canadian and international oil and gas industry and is currently the Chief Executive Officer and a Director of Sintana Energy Corporation (a TSX-listed company).

In addition, the Company announces that the board of directors has adopted a new incentive share option plan (the "Option Plan") and has granted stock options to purchase an aggregate of 14,937,593 common shares of the Company at a price of $0.10 per share to certain eligible participants. The Options are exercisable for a period of five years from the date hereof and vest as to one-third on each of the first, second and third anniversaries of the date hereof. The Option Plan is subject to approval by the shareholders of the Company and the TSX Venture Exchange and no further stock options may be granted until such approvals have been received. As of the date hereof, the Company has granted Options to purchase an aggregate of 24,587,559 common shares of the Company.

In conjunction with the above changes, the Company has entered into a management agreement with a consulting company controlled by Mr. Ronald MacMicken and a management agreement with a consulting company controlled by Mr. Andrew DeFrancesco (collectively, the "Management Agreements"). Pursuant to the Management Agreements, Mr. MacMicken and Mr. DeFrancesco will perform the functions of President and Chief Executive Officer and Executive Chairman, respectively and will each receive compensation comprised of, among other things, such number of common shares (collectively, the "Shares for Services") of the Company equal to $1,000,000 divided by the Discounted Market Price (as such term is defined in the TSX Venture Exchange Corporate Finance Manual) on the date after certain company milestones have been reached and services have been provided. The issuance of the Shares for Services is subject to approval by the TSX Venture Exchange.

About Quetzal Energy Ltd.

Quetzal is a junior oil and gas company with private participating interests in 4 blocks in the Llanos Basin of Colombia.