Block 7 Reserves Estimated at 94.7 Million Recoverable Barrels of Oil (Average Api -30)

Calgary, AB., December 18, 2012 – Emperor Oil Ltd. (TSX.V: EM) ("Emperor" or the "Company") announces that it has received the results of an independent National Instrument 51-101 technical report ('the "Report") which reported on the Rawat Basin of the Sudanese Block 7 prospect area (the "Sudan Block 7") to be acquired by the Company. The Report has been prepared by the Calgary-based engineering firm of Chapman Petroleum Engineering Ltd. and has been submitted to the TSX Venture Exchange ("TSX.V") for review and approval. The Report is available at www.sedar.com under the Company's continuous disclosure documents.

Highlights of the Report

The Report summarized Chapman's calculation of 94.7 million barrels of recoverable oil is limited to a small 20 square kilometre area of the Block 7 known as the Rawat Basin Oil Field. This Field is located approximately 150 km south of Khartoum where the 3 discovery wells were drilled and capped. Emperor's immediate development plan is to prepare the 3 discovery oil wells located within the Rawat Oil Field for commercial production. Early production from the Rawat Oil Field will be trucked until a planned 60 km. connecting pipeline is constructed; completion expected in 2013.

The Rawat Basin Oil Field's reserve base was calculated as proved 854 MSTB, probable 66,098 MSTB and 27,757 MSTB possible, for total proved reserves of 94,709 MSTB. Emperor's share is 42.5%.

To date, the Company has identified an inventory of 6 undrilled prospective oil fields within the 10,000 square kilometre area of Block 7, which are geologically similar to the three Rawat oil field discovery wells. BeicipFranLab identified the following:

The Rawat Basin is a northern sub-basin of the Muglad Basin which also encompasses the Mulat Basin to the south. This basin is responsible for much of the 350,000 barrels per day production exported through Port Sudan. George Fulford, the Company's geophysical consultant states that "the Rawat Oil Field basin trap is located at +/- 4,500 - 5,500 feet". Mr. Fulford further states "there are several geological areas with almost identical geophysical features as those existing in the Rawat Basin Oil Field, each with similar oil bearing traps recurring every +/- 20 kilometres". Mr. Fulford's 30 plus years' experience of developing and spotting Exploration Drilling locations is defined by his success record of developing and spotting +/- 90 successful oil well locations in Sudan.

The terms under which Emperor will acquire a working interest in Block 7 are outlined in the September 23, 2012 press release that can be found on our website.

"We are especially pleased with the results from the Report for Block 7 and Emperor Oil will remain a committed investor in this "Best of Class" oil development opportunity. This valuation provides the evidence that our investment in Block 7 is very attractive for the Company. Emperor will realize profitable development of these oil projects in the near-term, and will be the defining project needed for the company to grow and compete in the emerging "African Oil Arena" says Andrew McCarthy, President and CEO of Emperor. "The results of this report show that with only a small percentage of Block 7 having been explored, Emperor and its technical experts have quantified over 94 Million barrels of recoverable oil. The Company has already identified 6 similar oil field targets and we are excited by this tremendous opportunity. This has the potential to be a sustainable project with long term benefits for the people of Sudan, our business partners and our shareholders."

Emperor's disclosures of a technical or scientific nature in this news release has been reviewed and approved by John McLeod, P.Eng, Director for Emperor Oil Ltd., who, although not independent of the Company has the qualifications of a Qualified Reserves Evaluator and Auditor under the definition of National Instrument 51-101.

Cautionary Statement

Emperor currently does not have an interest in the Sudan block 7 and will only acquire its interest upon completion of the transactions contemplated in the September 2012 Memorandum of Understanding between State Petroleum Overseas Inc. and Emperor. Closing remains conditional upon TSX Venture Exchange approval to both the transaction and the concurrent private placement.

About Emperor Oil Ltd.

Emperor Oil is an international oil and gas company with projects in Sudan and Turkey. For further information please contact the Company at (403) 695-1794 or email at info@emperoroil.com.

ON BEHALF OF THE BOARD

“Andrew McCarthy”

Andrew McCarthy

President and Chief Executive Officer

www.emperoroil.com

Neither TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Statement Regarding “Forward-Looking” Information

Some of the statements contained in this press release are forward-looking statements and information within the meaning of applicable securities laws. Forward-looking statements and information can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words or phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements and information are not historical facts and are subject to a number of risks and uncertainties beyond Emperor’s control. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements, except as may be required by law.