Canoel International Energy - October 2013

TSX-V Listed: CILSeptember 2013

Canoel International Energy

TSX-Venture Exchange Symbol CIL

52 Week Trading Range $0.15 – $0.75

Common Shares Outstanding

Basic 8,188,429

Fully Diluted 11,874,899

Management, Directors & Insiders ~ 20%

Market Capitalization $2.4 Million

Market Facts – September 9, 2013

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Andrea Cattaneo CEO and President

•Resource focused specialist for emerging countries

•Expertise in structuring contracts in international markets and the oil industry

•30 years expertise in emerging economies as a sovereign lender: in 1986, involved in the first loan to Vietnam after the war

•Experienced negotiator and government advisor, with industrial experience

•Member of the Business Advisory Council – Greater Tumen Initiative (a United Nations Development Program sponsored organization) covering Russia, China, the two Koreas and Mongolia

•Managing director of Canoel and its subsidiaries

Jose Ramon Lopez Portillo Chairman of the Board

•Economist; past Mexican Ambassador in Rome, Italy: former Minister of Mexico

•Former Chairman of FAO (United Nations agency for Food and Agriculture) in Rome for two terms

•Leading researcher on Energy Security of Mexico

•Large network of political and business contacts worldwide

Erik LarreDirector and Chairman of the

Audit Committee•Entrepreneur, Norwegian nationality

•Deputy Chairman of Sparebanken Nord-Norge, as a member of the Supervisory Board of Sparebanken Vest

•Director of many real estate companies around the world

•Strong business connections within the Nordic business community and internationally

Management and Directors

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Dario Sodero Director

• Experienced energy industry executive with 35 years of experience in North America, the Sub-Arctic, North Africa and the Middle East

• Former President and director of Cygam Energy Inc., a TSX-V listed company with production and exploration permits in Tunisia and Italy.

• Director of Rockbridge Resources Inc. and former director and executive of several other TSX and TSX-V listed companies

• Strong geological, exploration and technical expertise

Luigi Regis Milano Director

• Managing Director of Canoel Italia Srl

• More than 35 years of oil industry experience, having served as a director and then owner of large oil refining, processing and trading company

• Currently director and part-owner of DPL Lubrificanti Spa, a private bio-diesel refining company based in Italy

• Strong network of relationships within the European and global oil industry

Francesco Zofrea Director

• Presently director of ENI Power Spa, the electricity branch of the Italian national energy company

• Previously Managing Director of Agip Petroli Spa, the main operative arm of ENI

• Experienced oil professional with a long career in oil trading and refining

• Relationship with other majors international companies and oil producing countries

Management and Directors

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Colin Russel International Executive

• Former Diplomat with the Canadian foreign service - key posts in Hong Kong and Venezuela

• Member of the Board of Husky Oil, a large Canadian integrated oil company

• Currently Director of Cheung Kong Infrastructure Holdings, Hong Kong, CK Life Sciences, Hong Kong, and ARA Asset Management, Singapore

• Significant experience in international markets and the oil industry

James LadnerSwitzerland-based business

executive

• Banker with several years of experience and increasing executive positions within the Swiss banking community

• Director of several resources companies listed on major exchanges

• Strong expertise in financial markets and capital raising

Hans-Rune WahlstromInternational Executive

• International banking experience with Christiania Bank in both Oslo and London, Essar Securities and SPN Fond

• Fluent in four languages

• Member of The Norwegian Society of Financial Analysts

• Former Head of North American Equity Sale at Kidder, Peabody & Co. Inc

• Currently Senior Managing Director of New York based investment bank, Du Pasquier & Co. Inc.

Advisory Committee

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Capitalize on management’s international connections to continue

accretive growth through acquisitions

Focus on Company interests in Argentina, Italy and Libya as core

international venues

Decrease shareholder risk by diversifying through a number of regional

prospects

Acquire proven and producing reserves and cash flow in temporarily

distressed or emerging areas

Focus on opportunities where Canoel may retain the role of Operator

Corporate Operating Strategy

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National oil company (YPF) reported to have drilled 10 successful wells to

2000m depth, on lands offsetting Canoel’s fields, with potential production of up

to 1000 bopd each

No CAPEX commitments

No income tax payable on sale of oil

Royalties fixed at 9%

No expiry date for the two permits

Bridge plugs in several of Canoel’s wells currently isolate deeper oil bearing

horizons which could be recompleted and placed on production

Oilfield infrastructure, including pipelines and facilities, can handle additional

production

Asset Highlights - Argentina

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Ralph E. Davis Associates Inc. (Houston)Independent NI-51-101 Report (March 31, 2013)

Total Proved Reserves: 1,609,000 bbls oil

Developed producing: 245,000 bbls oil

Developed non-producing: 696,000 bbls oil

Undeveloped: 668,000 bbls oil

Probable reserves: 220,000 bbls oil

Asset Highlights - Argentina

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Don Alberto & Don Ernesto Field Programs

Acquire and conduct regional geophysical surveys to evaluate deep prospects

Perforate prospective horizons currently behind pipe and below bridge plugs

Evaluate recompletion opportunities for workovers on deep wells

Examine potential for hydraulic fracturing

Current net production approximately 150 bopd (20.5º API)

Field management/recompletions increased 2014 production by approx. 25%

2014 guidance increased to 51,600 barrels per annum

Outlook for Argentina

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CANOEL ITALIA S.R.L. Exploration Permits

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PRODUCING ASSETS

Licences cover 847 km2 (209,209 acres); net land holdings of 369 km2

(91,143 acres)

Six (6) operated onshore gas concessions

Three (3) additional non-operated gas concessions

No royalties payable on current Italian production

Current production of 487 mcf/day (approximately 81 boepd)

Estimated 190 boepd behind pipe, ready to be tied in

Asset Highlights - Italy

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NEAR TERM PRODUCTION CATALYSTS

Estimated 190 boepd to be tied in during 2014

CAPEX budget fully funded from cash flow and estimated at $400,000

Production pending from two operated onshore gas concessions:

1. Torrente Vulgano (100% working interest)

Recoverable gas estimated at ~851 mmcf *

2. Canaldente (100% working interest)

Recoverable gas estimated at ~713 mmcf *

*Independent engineering evaluations by ENI and Ministry of Economic Development

Asset Highlights - Italy

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Italian gas demand remains strong, with pricing at €0.31 to €0.38 per m3

(approx. CDN$11.40 to $13.50 per mcf)

Government gas royalties limited to 7.0% for onshore permits, with no

royalties payable on production of less than 700 mmcf per field per year

Proved remaining reserves have been estimated at 41 Million cubic meters

(approx. 1.3 bcf)

Growth potential with several undeveloped properties with exploration

permits and applications totalling ~1,285 km2 (317,523 acres)

Pending NI 51-101 report for consolidated Italian interests

Outlook for Italy

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Representative office established in Tripoli, Libya

Canoel has been approved to conduct petroleum trading in Libya and was placed

on list of Authorized Traders by the Libyan National Oil Company (NOC)

Canoel has created an Energy Trading Division under guidance of the Board

and senior management

First phase of corporate strategy to position Canoel with Libyan Government and

NOC validated with presentation of current international operations

Negotiations ongoing directly with the Libyan National Oil Company to further

acquisition of shut in production estimated at 7000 – 12,000 bopd

Libya Developments

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Highly prospective new drilling opportunities on core Argentina properties

Drilling on adjacent lands by Argentinean National Company (YPF) has

yielded ~1000 bopd per well with multiple completions

Canoel has been authorized to conduct petroleum trading in Libya and was

placed on list of authorized traders by the Libyan National Oil Company

First phase of corporate strategy to acquire shut in Libyan fields with

production of 7,000 - 12,000 bopd now validated

Production from two new Italian onshore fields - Torrente Vulgano and

Canaldente - a potential catalyst for Canoel

Summary

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Certain statements in this presentation constitute forward-looking statements under applicable securities legislation. Such statements are generally identifiable by the terminology used, such as “may”, “will”, “could”, “would”, “anticipate”, “believe”, “intend”, “expect”, “plan”, “estimate”, “budget”, “outlook” or other similar wording. Forward-looking information includes, but is not limited to, reference to business strategy and goals, future capital and other expenditures, reserves and resources estimates, drilling plans, construction and repair activities, the submission of development plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, royalties payable, financing and capital activities, contingent liabilities, environmental matters, government approvals and completion of current negotiations. By its very nature, such forward-looking information requires Canoel International Energy Ltd. to make assumptions that may not materialize or that may not be accurate. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such factors, include but are not limited to: imprecision of reserves and resources estimates, ultimate recovery of reserves, prices of oil and natural gas, general economic, market and business conditions; industry capacity; competitive action by other companies; fluctuations in oil prices; refining and marketing margins; the ability to produce and transport crude oil and natural gas to markets; the ability to market and sell natural gas under its production sharing contracts; the effects of weather and climate conditions the results of exploration and development drilling and related activities; fluctuations in interest rates and foreign currency exchange rates; the ability of suppliers to meet commitments; actions by governmental authorities, including increases in taxes; decisions or approvals of administrative tribunals; changes in environmental and other regulations; risks attendant with oil and gas operations, both domestic and international; international political events; expected rates of return; and other factors, many of which are beyond the control of Canoel International Energy. More specifically, production may be affected by such factors as exploration success, production start-up timing and success, facility reliability, reservoir performance and natural decline rates, water handling, and drilling progress.

Capital expenditures may be affected by cost pressures associated with new capital projects, including labor and material supply, project management, drilling rig rates and availability, and seismic costs. These factors are discussed in greater detail in filings made by Canoel International Energy with the Canadian provincial securities commissions.

Readers are cautioned that the foregoing list of important factors affecting forward-looking information is not exhaustive. Furthermore, the forward-looking information contained in this presentation is made as of the date of this presentation and, expect as required by applicable law, Canoel International Energy does not undertake any obligation to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this presentation is expressly qualified by this cautionary statement. This Presentation is being issued by Canoel International Energy Limited (the “Company” or “Canoel”) to a limited number of parties to assist them in evaluating the Company for information purposes only. This Presentation does not constitute or form part of an offer or invitation for the sale or purchase of securities or any of the businesses or assets described in it.

This information in this Presentation, which does not purport to be comprehensive, has been provided by the Company and has not been independently verified. This information has been prepared in good faith, but no representation or warranty, express or implied, is or will be made, and no responsibility or liability is or will be accepted by the Company, or by any of its advisers, officers, employees or agents, in relation to the accuracy, completeness or fairness of the information, opinions or projections contained in this Presentation or any other written or oral information made available to any prospective investor or its advisers and any such liability is expressly disclaimed.

All statements of opinion and/or belief contained in this Presentation, all views expressed and all projections, forecasts or statements relating to expectations regarding future events or the possible future performance of the Company, represent the Company’s own assessment and interpretation of the information available to it as at the date of this Presentation. Past performance is no guide to future performance investments can go up as well as down, and investors may not get back all that they have invested.

If you are uncertain with regards to any of the information contained within the presentation you should seek in independent professional financial advice.

Disclaimer

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