HOUSTON, TX--(Marketwire - May 14, 2012) - Vanguard Energy Corporation (OTCQX: VNGE) (OTCBB: VNGE), an oil development and production company, today announced financial results for its Fiscal Year 2012 second quarter ended March 31, 2011.

Revenue from oil and gas activities during the period was a record $862,505. The Company had revenue of $397,915 in the prior year's second quarter. Income from operations was $91,222 for the 2012 second quarter compared with a loss in last year's second quarter of $(227,246). Total net income for the period was $254,367 versus a loss of $(1,241,088) in last year's second quarter. Earnings per share for the 2012 first quarter were $0.02 (based on 12,798,420 weighted average shares outstanding during the quarter). By comparison, last year's second fiscal quarter showed a loss of $(0.18) per share. Net cash from operating activities totaled $275,569 for the six months ended March 31, 2012.

Vanguard's President and CEO, Warren M. Dillard, commented: "We're very pleased with our net income during the 2012 fiscal second quarter. As we look forward, we believe that our revenues will be materially enhanced by increased oil production from our new drilling efforts."

Vanguard Energy recently completed drilling its seventh well in the Batson Dome oil field, where it controls more than 500 strategically located acres in Southeast Texas. Two additional wells are now in the early stage of drilling and are expected to be on line before the end of the current quarter.

Mr. Dillard observed that the company's mission is to aggressively develop the acreage it currently has under control, having up to 50 potential well sites, and to actively seek additional lease opportunities within the Batson Dome field as well as pursue new leasing opportunities in other historic fields in the region.

Mr. Dillard commented further that as of March 31, 2011, the five completed wells in the Batson Dome field were collectively producing approximately 122 barrels of oil per day. Total production during the second quarter was 10,518 barrels of oil. "We expect the next wells to perform well since they will be the first whose locations were selected with the benefit of recently completed 3-D seismic reports."

Vanguard Energy to present at the upcoming B. Riley Investor Conference

Warren Dillard, Chief Executive Officer of the Company and Dr. Jerry Bailey, Chairman of the Company, will present at the 13th Annual B. Riley Investor Conference at the Loews Santa Monica Beach Hotel in Santa Monica, California on Monday, May 21^st at 4:00 PM (Pacific Time). The presentation will be webcast live via a link posted on the Company's website in the investor presentation section at www.vanguardenergycorp.com, and will be archived for ten (10) days on the Company's website following the presentation. Warren Dillard and Dr. Jerry Bailey will be available for one-on-one meetings with investors during the conference.

About Vanguard Energy Corporation

Vanguard Energy Corporation is an oil drilling and production company with a focus on established oil fields in southeast Texas. Concentrating on oil properties in established areas with proven production, Vanguard can apply its managerial expertise to maximize production while minimizing risk. Vanguard believes it can create significant shareholder value by building cash flow and oil reserves through an aggressive, focused acquisition and development program in the prolific Southeast Texas oil producing region. Vanguard's initial area of operation is in the famous Batson Dome Field, where it controls 500 strategically located acres. For more information, visit: www.vanguardenergycorp.com.

Safe Harbor

This press release and other statements Vanguard Energy Corporation may make in the future contain forward-looking statements that relate to Vanguard's plans, objectives and future estimates. Various risks, uncertainties and other factors could cause actual results to differ materially from those expressed in any forward-looking statements. For a more detailed list of such risks, uncertainties and other factors, please refer to the Risk Factor section of Vanguard's Registration Statement on Form S-1 and in its other periodic filings with the Securities and Exchange Commission. Vanguard makes no commitment to update any forward-looking statement, or to disclose any facts, events, or circumstances after the date of this release that may affect the accuracy of any forward-looking statement, except as may be required by applicable law.

VANGUARD ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
			Three Months Ended								Six Months Ended
			March 31,								March 31,
			2012				2011				2012				2011
				(Unaudited	)			(Unaudited	)			(Unaudited	)
Revenues
	Oil and gas sales		$	862,505			$	397,915			$	1,607,676			$	397,915
Costs and expenses
	Lease operating expense			138,540				30,517				237,636				30,517
	Production taxes			39,744				18,013				74,087				18,013
	Depreciation, depletion and amortization			189,899				49,271				311,844				49,271
	Asset retirement obligation accretion			974				1,052				2,117				1,052
	General and administrative			401,932				524,788				702,371				623,378
	Other			194				1,520				626				47,113
Total costs and expenses				771,283				625,161				1,328,681				769,344
Income (loss) from operations				91,222				(227,246	)			278,995				(371,429	)
Other income (expense)
	Interest income			1,180				361				1,712				826
	Interest expense			(246,524	)			(165,231	)			(492,068	)			(196,435	)
	Change in fair value of warrant and conversion feature liabilities			408,489				(848,972	)			483,108				(846,449	)
Total other income (expense)				163,145				(1,013,842	)			(7,248	)			(1,042,058	)
Income (loss) before income taxes				254,367				(1,241,088	)			271,747				(1,413,487	)
Provision for income taxes				-				-				-				-
Net income (loss)			$	254,367			$	(1,241,088	)		$	271,747			$	(1,413,487	)
Earnings (loss) per share - Basic			$	0.02			$	(0.18	)		$	0.02			$	(0.22	)
Weighted average number of common shares				12,705,561				7,042,837				11,062,946				6,468,301
Earnings (loss) per share - Diluted			$	0.02			$	(0.18	)		$	0.02			$	(0.22	)
Weighted average number of common and potential common shares				12,798,420				7,042,837				11,109,375				6,468,301

VANGUARD ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
			March 31,				September 30,
ASSETS			2012				2011
				(Unaudited	)
Current assets
Cash and cash equivalents			$	2,256,932			$	453,243
Accounts receivable				394,168				257,147
Other assets				23,167				4,428
Total current assets				2,674,267				714,818
Property and equipment
Oil and gas, on the basis of full cost accounting
	Proved properties			6,144,103				3,606,967
	Unproved properties and properties under development, not being amortized			780,520				619,679
Furniture and equipment				3,544				2,014
Less: accumulated depreciation, depletion and amortization				(576,500	)			(264,657	)
Total property and equipment				6,351,667				3,964,003
Debt issuance costs				232,713				338,345
Other assets				12,195				527,886
Total assets			$	9,270,842			$	5,545,052
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable			$	232,182			$	180,031
Other liabilities				134,089				75,056
Current portion of notes payable, net of discount of $604,191 and $0				2,795,809				-
Current portion of conversion feature liability				339,210				-
Total current liabilities				3,501,290				255,087
Notes payable, net of discount of $0 and $1,066,539				-				2,333,461
Participation liability				964,619				1,172,315
Conversion feature liability				-				720,593
Warrant liabilities				298,594				400,319
Asset retirement obligations				67,084				24,629
Total liabilities				4,831,587				4,906,404
Commitments and contingencies				-				-
Stockholders' equity
Preferred stock, $0.00001 par value; 5,000,000 shares authorized, none issued or outstanding				-				-
Common stock, $0.00001 par value; 50,000,000 shares authorized, 12,710,409 and 7,865,822 shares issued and outstanding				127				79
Additional paid-in capital				5,394,922				1,866,110
Accumulated deficit				(955,794	)			(1,227,541	)
Total stockholders' equity				4,439,255				638,648
Total liabilities and stockholders' equity			$	9,270,842			$	5,545,052