WesternZagros Provides Operational Update

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CALGARY, ALBERTA--(Marketwire -07/17/12)- NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

WesternZagros Resources Ltd. (WZR.V) ("WesternZagros" or "the Company") has completed the remediation work at its Sarqala-1 producing oil well and is preparing to test the promising Shiranish reservoir in the Kurdamir-2 well. WesternZagros also continues to actively cooperate with the Kurdistan Regional Government ("KRG") in the effort to assign the third party participant interest ("TPPI") within the Garmian Block.

Sarqala-1 Well

The workover of the subsurface valve at Sarqala-1 has been completed. The well is ready to resume production when the KRG issues the tenth oil sales contract since production commenced in late October, 2011. Prior to taking the well off-line for the repair, it had been producing approximately 5,000 barrels of light oil per day.

Kurdamir-2 Exploration Well

The operator, Talisman (Block K44) B.V. ("Talisman") and WesternZagros are making the final preparations for the planned Shiranish testing program at the Kurdamir-2 well. Testing will begin before the end of the month, upon successful completion of wireline logging and casing of the wellbore with 7 inch diameter production liner. At least two drill stem tests will be conducted in the interpreted oil column. The well was drilled through the Cretaceous-age Shiranish reservoir to a total depth of 4,000 metres. Preliminary cuttings, mud gas and subsequent log results indicate a potential gross hydrocarbon pay interval of over 500 metres thickness in this zone, with oil shows below approximately 3,500 metres down to total depth. No oil-water contact has been detected. Preliminary log interpretations are encouraging, indicating a fractured limestone reservoir with some matrix porosity.

Garmian Block Third Party Participant Interest Assignment

WesternZagros continues to provide thorough and comprehensive cooperation to the KRG in its negotiations with the multiple parties that have expressed interest in becoming the third co-venturer in the Production Sharing Contract that governs the Garmian Block. The Company intends to maintain its current interest in both the Garmian and Kurdamir blocks.

About WesternZagros Resources Ltd.

WesternZagros is an international natural resources company engaged in acquiring properties and exploring for, developing and producing crude oil and natural gas in Iraq. WesternZagros, through its wholly-owned subsidiaries, holds a 40 percent working interest in two Production Sharing Contracts with the Kurdistan Regional Government in the Kurdistan Region of Iraq. WesternZagros's shares trade in Canada on the TSX Venture Exchange under the symbol "WZR".

This news release contains certain forward-looking information relating, but not limited, to operational information, future drilling and testing plans, and the timing associated therewith. Forward-looking information typically contains statements with words such as "anticipate", "plan", "estimate", "expect", "potential", "could", or similar words suggesting future outcomes. The Company 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. In addition, the forward-looking information is made as of the date hereof, and the Company assumes no obligation to update or revise such to reflect new events or circumstances, except as required by law.

Forward-looking information is not based on historical facts but rather 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), continued political stability, and timely receipt of any necessary government or regulatory approvals. Although the Company believes the expectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect. Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by WesternZagros including, but not limited to, risks associated with the oil and gas industry (e.g. operational risks in exploration; inherent uncertainties in interpreting geological data; changes in plans with respect to exploration or capital expenditures; interruptions in operations together with any associated insurance proceedings; the uncertainty of estimates and projections in relation to costs and expenses and health, safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with negotiating with foreign governments and risk associated with international activity. For further information on WesternZagros and the risks associated with its business, please see the Company's Annual Information Form dated March 26, 2012 (the "AIF"), which is available on SEDAR at www.sedar.com.

WESTERNZAGROS RESOURCES WAS RECOGNIZED AS A TSX VENTURE 50® COMPANY IN 2012. TSX VENTURE 50 IS A TRADE-MARK OF TSX INC. AND IS USED UNDER LICENSE.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact:

WesternZagros Resources Ltd.
Greg Stevenson
Chief Financial Officer
(403) 693-7007
WesternZagros Resources Ltd.
Tony Kraljic
VP Business Development
(403) 693-7011
WesternZagros Resources Ltd.
Lisa Harriman
Manager of Investor Relations
(403) 693-7017
investorrelations@westernzagros.com
www.westernzagros.com
Smithfield Group
Scott Fulton
Director
+44 (0) 20 7903 0641
sfulton@smithfieldgroup.com

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