Operational Update

June 24, 2013

Caza Oil & Gas, Inc.

CAZA OIL & GAS, INC. ANNOUNCES COMMENCEMENT OF DRILLING OPERATIONS ON SECOND CAZA RIDGE WELL AND PROVIDES OPERATIONAL UPDATE

HOUSTON, TEXAS (Marketwire - June 24, 2013) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) is pleased to announce that drilling has commenced on the Company's second well on its Copperline Bone Spring property ("Copperline") in Lea County, New Mexico. The Caza Ridge 14 State #4H horizontal well commenced drilling on June 15, 2013.

The well will be drilled to a total vertical depth of approximately 11,750 feet with a total measured depth of approximately 15,895 feet. This well is a direct offset to the successful Caza Ridge 14 State #3H well. The primary target is the 3rd Bone Spring Sand interval with potential secondary targets in the Brushy Canyon, Avalon Shale, and 1st and 2nd Bone Spring Sands. Caza has a 58.75% working interest (approximate 44.80% net revenue interest) in the Caza Ridge 14 State #4H well.

In addition to announcing the commencement of operations on the Caza Ridge 14 State #4H well, the Company is providing the following operational update on the Lennox, Madera and Roja properties:

·; The fracture stimulation on the Lennox State Unit 32 #2H horizontal Bone Spring well was successful. Caza stimulated the 3rd Bone Spring Sand interval in the lateral section of the well in multiple stages, and also stimulated the 2nd and 1st Bone Spring Sand intervals in the vertical section of the well to gauge commerciality and future development potential. The 1st Bone Spring tested non-commercial and is being isolated, but the 2nd and 3rd Bone Spring intervals produced oil and natural gas at commercial rates on test. As planned, the well is being placed on artificial lift and will be produced to recover frac fluids and establish stabilized flow rates. Once stabilized rates are established, the market will be updated accordingly. Caza has a 40.00% working interest before payout (31.08% net revenue interest) and a 50.00% working interest after payout (38.85% net revenue interest) in the Lennox State Unit 32 #2H well and will participate with a 50.00% working interest in all subsequent wells drilled by Caza on the Lennox property.

·; The initial well at the Roja property in Lea County, NM, the Madera 17 Fed #1H horizontal Brushy Canyon well operated by OXY USA Inc. ("OXY"), has reached the intended total measured depth of approximately 13,568 feet. The well was recently fracture stimulated in multiple stages and is currently flowing back to clean up. After the initial flowback period, OXY intends to put the well on artificial lift to stabilize production. Once stabilized flow rates are established, the market will be updated accordingly. Caza has a 20.00% working interest (15.60% net revenue interest) in the Madera 17 Fed #1H well and the Roja property.

·; The initial well at the Madera property in Lea County, NM, the Madera 35 Fed #1H horizontal Bone Spring well, also operated by OXY, is currently drilling the horizontal section of the well. The pilot hole was drilled and logs were recently obtained. Based on analysis of the log data, OXY will begin drilling the lateral section of the well through the primary objective 3rd Bone Spring Sand interval to a total measured depth of approximately 16,839 feet. Once the horizontal section is complete, the well will be fracture stimulated and the market will be updated accordingly. Caza has a 20% working interest (15.60% net revenue interest) in the Madera 35 Fed #1H well and the Madera property.

·; Caza is also preparing the Gateway and West Copperline Bone Spring prospects for drilling subsequent to the Caza Ridge 14 State #4H well.

W. Michael Ford, Chief Executive Officer commented:

"We are very pleased with the Company's current operations in the Bone Spring play. The first Caza Ridge well at Copperline was a very good result, which we hope to duplicate with the recently commenced Caza Ridge development well. The Lennox well has tested commercial for oil and natural gas in two of the three Bone Spring Sand intervals, and we look forward to completing the artificial lift system and bringing the well online very soon. The OXY operated Madera and Roja wells are progressing nicely, and we look forward to providing results on these wells and bringing them online in the near future, as well."

"Lennox, Madera and Roja provide the Company with good development potential across expansive lease areas. This should mean repeatable success across multiple oil and liquids-rich zones in the broader Bone Spring play. The stacked pay potential for oil and liquids-rich gas is what makes this play so intriguing. It's also the reason management has focused efforts on the play, and what should ultimately make the play successful for Caza and create value for our shareholders."

About Caza

Caza is engaged in the acquisition, exploration, development and production of hydrocarbons in the following regions of the United States of America through its subsidiary, Caza Petroleum, Inc.: Permian Basin (West Texas and Southeast New Mexico) and Texas and Louisiana Gulf Coast (on-shore).

For further information, please contact:

Caza Oil & Gas, Inc.

Michael Ford, CEO +1 432 682 7424

John McGoldrick, Chairman +65 9731 7471 (Singapore)

Cenkos Securities plc

Jon Fitzpatrick +44 20 7397 8900 (London)

Neil McDonald +44 131 220 6939 (Edinburgh)

VSA Capital Limited

Andrew Raca +44 20 3005 5004

Malcolm Graham-Wood +44 20 3005 5012

M:Communications

Chris McMahon +44 20 7920 2330

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

In accordance with AIM Rules - Guidance Note for Mining, Oil and Gas Companies, the information contained in this announcement has been reviewed and approved by Anthony B. Sam, Vice President Operations of Caza who is a Petroleum Engineer and a member of The Society of Petroleum Engineers.

ADVISORY STATEMENT

Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Such information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "schedule", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "intend", "could", "might", "should", "believe", "develop", "test", "anticipation" and similar expressions. In particular, information regarding the depth, timing and location of future drilling, intended well operations and production testing, future drilling results and success and the Company's future working interests and net revenue interests in properties contained in this news release constitutes forward-looking information within the meaning of securities laws.

Implicit in this information, are assumptions regarding the success and timing of drilling operations, rig availability, projected revenue and expenses and well performance. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual future operations, operating results and economic performance of the Company are subject to a number of risks and uncertainties, including general economic, market and business conditions and could differ materially from what is currently expected as set out above. In addition, the geotechnical analysis and engineering to be conducted in respect of certain wells may not be complete. Future flow rates from wells may vary, perhaps materially, and wells may prove to be technically or economically unviable. Any future flow rates will be subject to the risks and uncertainties set out herein.

For more exhaustive information on these risks and uncertainties you should refer to the Company's most recently filed annual information form which is available at www.sedar.com and the Company's website at www.cazapetro.com. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as may be required by securities laws.