Epsilon Energy Ltd. Announces Rejection of Shareholder Rights Plan

CONCORD, ONTARIO--(Marketwire - May 10, 2012) - Epsilon Energy Ltd. ("Epsilon" or the "Company") (TSX:EPS) announces that at its annual meeting of shareholders held today, shareholders rejected the Shareholder Rights Plan previously approved by the board of directors. The Shareholder Rights Plan is now rescinded.

About Epsilon Energy Ltd.

Epsilon is engaged in the exploration and production of natural gas reserves. The Company also has participating interests and production sharing agreements in other natural gas and oil plays within North America. Established in 2005, the Company has been a producer of natural gas and oil since 2006. Epsilon's ongoing business strategy involves focused targeting of lower risk natural gas properties within the Marcellus Shale and other parts of Canada and the United States.

Special note for news distribution in the United States

The securities described in the news release have not been registered under the United Stated Securities Act of 1933, as amended, (the "1933 Act") or state securities laws. Any holder of these securities, by purchasing such securities, agrees for the benefit of Epsilon that such securities may not be offered, sold, or otherwise transferred only (A) to the Company or its affiliates; (B) outside the United States in accordance with applicable state laws and either (1) Rule 144(as) under the 1933 Act or (2) Rule 144 under the 1933 Act, if applicable.