2012 World Outlook Financial Conference Vancouver, British Columbia, February 10-11, 2012

TSX.V: WZR www.westernzagros.com

Caution to the Reader

This presentation contains forward-looking statements with respect to WesternZagros, including but not limited to operational information, future exploration and testing plans and estimated costs and timing associated therewith, working capital, production, sales and resources. Forward-looking information typically contains statements with words such as “anticipate”, “estimate”, “potential”, “could”, or similar words suggesting future outcomes. WesternZagros cautions readers not to place undue reliance on forward-looking information as by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by WesternZagros. Readers are also cautioned that disclosed test rates and potential production rates may not be indicative of long-term performance or of ultimate recovery. In addition, the forward looking information is made as of the date hereof, and WesternZagros assumes no obligation to update or revise such to reflect new events or circumstances, except as required by law.

Forward looking information is based on management's current expectations and assumptions regarding, among other things, plans for and results of drilling activity and testing programs, future capital and other expenditures (including the amount, nature and sources of funding thereof), future economic conditions, future currency and exchange rates, future oil prices, continued political stability, continued participation of the Company’s co-venturers, successful resolution of disputes, continued ability to successfully market its production, continued ability to obtain qualified staff and equipment in a timely and cost efficient manner. In addition, budgets are based upon WesternZagros' current exploration and appraisal plans and anticipated costs both of which are subject to change based on, among other things, the actual results of drilling and testing activity, unexpected delays, availability of financing and changes in market conditions. Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect.

WesternZagros’s operations are subject to all the risks normally incident to the exploration, production, development and operation of crude oil and natural gas properties and the drilling of crude oil and natural gas wells, including encountering unexpected formations or pressures, premature declines of reservoirs, potential environmental damage, blow-outs, fires and spills, all of which could result in personal injuries, loss of life and damage to property of WesternZagros and others; environmental risks; inherent uncertainties in interpreting geological data; delays in collecting payment for production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the ability to attract and retain key personnel; and the risk of commodity price and foreign exchange rate fluctuations.

All of WesternZagros’s assets are located in Kurdistan. As such, WesternZagros is also subject to political, economic, and other uncertainties, including, but not limited to, the uncertainty of negotiating with foreign governments, expropriation of property without fair compensation, adverse determinations or rulings by governmental authorities, changes in energy policies or the personnel administering them, nationalization, currency fluctuations and devaluations, disputes between various levels of authorities, arbitrating and enforcing claims against entities that may claim sovereignty, authorities claiming jurisdiction, potential implementation of exchange controls, royalty and government take increases and other risks arising out of foreign governmental sovereignty over the areas in which WesternZagros’s operations are conducted, as well as risks of loss due to civil strife, acts of war, guerrilla activities and insurrections. WesternZagros’s operations may be adversely affected by changes in government policies and legislation or social instability and other factors which are not within the control of WesternZagros including, among other things, adverse legislation in Iraq and/or the Kurdistan Region, a change in crude oil or natural gas pricing policy, renegotiation or nullification of existing concessions and contracts, taxation policies, economic sanctions, the imposition of specific drilling obligations and the development and abandonment of fields.

The ability of WesternZagros to successfully carry out its business plan is primarily dependent on the continued support of its shareholders, the discovery of economically recoverable reserves, its co-venturers’ continued participation in the exploration activities under the PSCs, and the ability of the Corporation to obtain financing to develop reserves. WesternZagros’ cash balance may not be sufficient to fund its ongoing activities at all times and carry the KRG’s carried interests under the PSCs. From time to time, WesternZagros may require additional financing in order to carry out its oil and gas acquisition, exploration and development activities. In addition, any change in the co-venturers’ participation could increase or reduce the Company’s capital requirements. Failure to obtain such financing on a timely basis could cause WesternZagros to forfeit its interest in certain properties, miss certain acquisition opportunities and reduce or terminate its operations. It is possible that future global economic events and conditions may result in further volatility in the financial markets which, in turn, could negatively impact WesternZagros’s ability to access equity or debt markets in the future.

Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors should not place undue reliance on these forward-looking statements. For a full discussion of the risk factors, please refer to the Annual Information Form and fourth quarter, 2010 MD&A on SEDAR at www.sedar.com or on the Company’s web site. Additional information relating to WesternZagros is also available on SEDAR at www.sedar.com, including the Company’s material change reports dated December 16, 2010, January 17, 2011, February 22, 2011 , July 19, 2011, and September 14, 2011 which include the risks and level of uncertainty associated with the Company’s ability to recover resources from the PSC lands.

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Exceptional Exploration Success with Early Production Targeting over 1 billion prospective BOEs in the next 5 months (includes the Sarqala-1 oil discovery, Mil Qasim-1 and Kurdamir-2) *

WesternZagros moves towards an exploration and production company with the commencement of extended well testing at Sarqala-1

Fourth company to produce oil and sell into the domestic market from own discovery

2012 exploration wells are in formations that have already been drilled with demonstrated discoveries

Drilling results support the potential for Kurdamir to be a giant oil field

WesternZagros’s PSC lands encompass one of the largest exploration areas in the Kurdish region of Iraq, one of the world’s most exciting exploration regions

Separators and Wellhead – Sarqala-1

* Independently audited by Sproule International Limited

See Slides 34 through 40, inclusive, for data

Security Bay: Sarqala-1

Mil Qasim Rig

Shipping Pump Manifold – Sarqala-1

Production Tanks: Sarqala -1

Kurdamir-2 Rig

Our Assets: Two E&P Blocks in Kurdistan, Iraq

Assets • Early entrant: blocks are one of the largest

(2,120 km2/500,000 acre) exploration areas,

with a 40% working interest in both blocks

• On trend with the super-giant Kirkuk oil field

• Multiple prospects and leads

• Over 3.6 billion BOEs (mean estimate) of

audited prospective resources *

• Oil found at both wells drilled and tested to

date: 100% success ratio

• oil discovered at Sarqala-1 (Garmian

Block); extended well test commenced

on October 18, 2011

• Oil, gas and condensate discovered at

Kurdamir-1 (Kurdamir Block) – a

potentially giant field, evidence for over

1,900 metres of gross hydrocarbon

interval

4 * Independently audited by Sproule International Limited

See Slides 34 through 40, inclusive, for data

Corporate Profile

Symbol on TSX Venture Exchange

First Listed

Basic Shares Outstanding1

Diluted Shares Outstanding2

Director & Officer Ownership3

Market Capitalization4

Average Daily Trading Volume (3 month)

Working Capital5

Head Office

International Office

WZR

October 22, 2007

371.2 million

390.0 million

6.5%

$293 million CDN

1.0 million

$66.4 million US

Calgary, Alberta, Canada

Sulaymaniyah, Kurdistan Region of Iraq

1 Basic shares outstanding at February 7, 2012 2 Diluted Shares Outstanding include options granted as at February 7, 2012 3 Including share ownership and options granted as at February 7, 2012 4 As of February 7, 2012 closing share price 5 September 30, 2011 working capital - see Slide 6 for details

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Financial Position: Forecast to end Q2 2012

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1. On October 25, 2011, WesternZagros completed a private placement with TAQA for gross proceeds of Cdn$46.6 million. 2. Includes WesternZagros’s share of Kurdamir-2 costs and 100% of Garmian costs to the end of Q2 2012. Upon assignment of the outstanding

Third Party Interest in the Garmian Block by the Kurdistan Regional Government, the new party will be required to repay to WesternZagros their share of costs related to the Sarqala-1 re-entry and Mil Qasim-1 well.

3. Excludes estimated proceeds from the sale of extended well test production

Working Capital Position (as at September 30, 2011)

Cash 35.2 Non-Cash Working Capital (14.8) October 25, 2011 Private Placement Proceeds1 46.0

Working Capital 66.4

Capital & Operating Budget3 Q4 H1 2012

Drilling and Related Operations 2 32.0 49.0 4 Field Office and PSC-Related Expenditures 3.5 4.0 G&A, Business Development and Other 1.5 3.0

Q4 2011 + H1 2012 Capital & Operating Budget 37.0 56.0

Exploration and Appraisal Well Drilling Timeline

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Sarqala-1 Re-Entry Jeribe

Mil Qasim-1 Upper Fars

Kurdamir-2 Oligocene, Eocene, Cretaceous

Extended well test – leading to full production Extended well test leading to early production

Sarqala-2 Jeribe

Hasira-1 Jeribe, Oligocene

Estimated $20 – 25 million gross cost

Planning underway with anticipated spud date second half of 2012

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2011 2012 2013

Estimated $35 – 40 million gross cost

Estimated $60 – 65 million gross cost. Spud October 25, 2011

Planning underway with anticipated spud date second half of 2012

Mil Qasim-1

Kurdamir-2

Hasira-1

Sarqala-2

Sarqala-1 Oil Discovery

Sarqala-2

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Near-Term Potential Value Creation: 2011-2012

Gross Unrisked Prospective Resources (Audited) *

* See slides 34 through 40, inclusive, for data

Size of the prize is over 1 billion BOEs of prospective resources

May/June 2011 Oil Discovery

40o API light oil

December 2011 Drilled and

Currently Testing

October 25, 2011 Spudded

Kurdamir-2 well

• Size of the prize is over 3.6 billion BOEs of prospective resources (mean estimate)*

• Discoveries at both Kurdamir and Sarqala wells

• Proven light oil: desirable to enhance export blend 69% of Iraq’s reserves are 27°

API or heavier** • Located south of the mountain

front: less complex structures • Good preservation of proven

world class reservoirs • In the proven Oligocene Fairway • On trend with the super giant

Kirkuk oilfield • Proximity to infrastructure

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* Independently audited by Sproule International Limited – see slides 38 through 44 inclusive, for data

** Source: WesternZagros confidential files

Kurdamir and Garmian Blocks: Light Oil Prone

Kurdistan: Current and Planned Production Capability

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Data obtained from Corporation presentations/ websites

Current Production Capbility (Jan 2012):

TTOPCO Taq Taq (trucked)

DNO Tawke

KAR Khurmala

Dana Gas Kor Mor (condensate trucked)

WesternZagros Sarqala (trucked)

Gulf Keystone Shaikan (trucked)

Sub Total

Planned Production Capability Additions in 2012:

TTOPCO Taq Taq

DNO Tawke

KAR Khurmala

Gulf Keystone Shaikan +35,000 bopd

Afren Barda Rash 10,000 bopd

Other EPFs

Sub Total

Total Current and Planned

Capability:

Export Volumes:

Mid 2011 (peak)

Average 2011

Forecast 2012 175,000 bopd

+45,000 bopd

+40,000 bopd

+30,000 bopd

80,000 bopd

75,000 bopd

75,000 bpod

14,000 bopd

5,000 bopd

5,000 bpod

254,000 bopd

5,000 bpod

165,000 bopd

419,000 bopd

200,000 bopd

>100,000 bopd

Multiple Prospects: Oil and Gas

Garmian Block Mil Qasim-1 • Currently testing the Upper Fars reservoir • Third exploration commitment well under

First Exploration Sub Period Sarqala-2 well • First appraisal well in the Jeribe reservoir • Anticipated spud date in second half of

2012 Hasira-1 well • Exploration well targeting the Oligocene • Exploration commitment well under the

Second Exploration Sub Period • Also appraise the Jeribe reservoir • Anticipated spud date in second half of

2012

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Kurdamir Block Kurdamir-2 well • Currently drilling • Step-out exploration and appraisal well

targeting the Oligocene, Eocene and Cretaceous

Production Sharing Contract (PSC): Fair and Balanced Terms

Oil Case When the R-Factor (revenue/cost) is below one, the Contractor Group is entitled to 35% of the Profit Oil. The Contractor Group’s percentage is then reduced on a linear scale to a minimum of 16% as the ratio is 2 or greater.

Gas Case When the R-Factor is below one, the Contractor Group is entitled to 40% of the Profit Gas. The Contractor Group’s percentage is then reduced on a linear scale to a minimum of 20% as the ratio is 2.75 or greater. Cost recovery gas: up to 55% of net available gas.

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* For Kurdamir Block, the Kurdistan Regional Government’s (“KRG”) share of capital is carried by WesternZagros. Ultimately to be recovered by WesternZagros through the KRG’s share of Cost Recovery Oil.

** For Garmian Block, WesternZagros currently carries 100% until assignment of the Third Party Participant Interest (“TPPI”). *** KRG is entitled to a 3% capacity building bonus of WesternZagros profit oil for a net effective share of 38.8%.

5%

10%

15%

20%

25%

30%

35%

40%

Effective Contractor Profit Oil % Allocations Based on R-Factors (1)

Pre-Iraqi Constitution PSC

Top Quartile PSC Effective Profit Oil Entitlement

1. Repsol and Norbest maximum profit oil rate is 32% and 23.8% until such time the R-Factor is greater than 1

2. Not adjusted for individual contractor working interest

Source: The profit oil terms have been assessed from enacted copies of the production sharing agreements published by the Kurdistan

Regional Government on their website www.KRG.org as of September 20th, 2011 14

$200mm upon Entry $280mm due June 30 '12

$140mm upon Entry

$65mm upon Entry

Near Term Opportunities of the Garmian Block

Mil Qasim

• Drilling completed December 2011

• Oil shows encountered above and in the targeted Upper Fars reservoir

• Testing program currently underway

Sarqala-2 well location • First appraisal well following

Sarqala-1 discovery • Anticipated spud date in second

half of 2012

Hasira-1 well location • Exploration well targeting the

Oligocene • Also appraisal well of the Jeribe

reservoir • Second exploration well to comply

with PSC obligations under the Second Exploration Sub Period

• Anticipated spud date in second half of 2012

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Mil Qasim and Sarqala Structures

Sarqala-1 Well

• Sidetrack through Jeribe Formation flowed light, 40° API oil at over 9,000 bopd contingent resources • Major increase of oil (prospective resources) in the

Jeribe reservoir is:P90 - P50 -P10 MMbbls : 31-136-429

Sarqala-2 Well

• Appraisal well to delineate the Upper Fars and complete for production in the Jeribe reservoir

Mil Qasim-1 Well

• Currently testing the oil bearing sandstones in the Upper Fars reservoir

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• Younger and shallower structure than Sarqala and the geology and drilling was much simpler

• Upside (prospective resources) in the Upper Fars reservoir is:P90 - P50 -P10 MMbbls : 7 – 63- 265

Hasira-1 Well • Appraisal and exploration well to delineate the

Upper Fars, Jeribe and test the Oligocene reservoirs (Jeribe and Oligocene producer)

• Kurdamir-2 spud on October 25, 2011

• Third casing string set at 1785 metres.

• Oligocene test results anticipated by end of Q1 2012

• Kurdamir-2 to be drilled by June 30, 2012

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Near Term Opportunities of Kurdamir Block

Kurdamir-2 Rig Site: Sept 30, 2011

Kurdamir-Topkhana Structure

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Kurdamir-2 will be the important test of the oil potential in the Oligocene, Eocene and the Cretaceous of the structure

Mean estimate prospective resources: 585 MMbbls on Kurdamir Block alone

Potentially one of the world biggest oil fields if Kurdamir structure extends off the Block

WesternZagros: On the Cusp of a Major Oil Discovery

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The Kurdamir and Garmian blocks, combined, form one of the largest exploration areas in Kurdistan, one of the world’s most highest ranked exploration regions

Current team is highly experienced in exploration in challenging regions

Conservative approach to financing, resource reporting and drilling • Release only independently audited contingent and prospective resource numbers • Maintain financial flexibility • Highly attentive to safety • Recognize importance of on-the-ground relationships

Drilling results support the potential of a giant oil field at Kurdamir

Targeting over 1 billion BOEs in the next 5 months (includes the Sarqala-1 oil discovery, Mil Qasim-1

and Kurdamir-2 wells)

Gross Unrisked Prospective Resources (Audited)

May/June 2011

Oil Discovery! 40o API light oil

December 2011 Drilled

and currently testing

October 25, 2011 Spudded

Kurdamir-2 well

Additional Information

30 WesternZagros management, KRG representative and site personnel celebrating commencement

of production for the Sarqala-1 extended well test October, 2011

www.westernzagros.com

Head Office

600, 440 – 2nd Avenue S.W.

Calgary, Alberta, Canada

T2P 5E9

Tel: 1-403-693-7017

Fax: 1-403-233-0174 email : investorrelations@westernzagros.com

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