TORONTO,Ontario (November 27, 2012) – Brownstone

TORONTO,Ontario (November 27, 2012) – Brownstone Energy Inc. (TSXV: “BWN”;OTCQX: “BWSOF”) (“Brownstone” or the “Company”) today announces its unauditedresults for the three months ended September 30, 2012.As at September 30, 2012,the Company had cash and cash equivalents of $10.7 million as compared to $18.2million as at June 30, 2012.  Investmentsat fair value totaled $3.0 million as at September 30, 2012 as compared to $2.8million as at June 30, 2012.  Also as at September30, 2012, exploration and evaluation assets totaled $49.7 million as comparedto $45.1 million as at June 30, 2012.FinancialHighlights for the three months ending September 30, 2012 with comparatives:  Operating Results Three months ended September 30,   2012 2011    Realized losses on disposal of investments, net $                       - $          (191,331) Net change in unrealized losses on investments              (287,466)              (2,372,268) Net investment losses              (287,466)              (2,563,599) Total expenses                 720,759                 836,438 Loss for the period (1,095,691) (3,343,326) Basic and diluted loss per common share (0.01) (0.03)    Consolidated statements of financial position highlights   September 30, 2012   June 30, 2012 Cash and cash equivalents $      10,700,948 $      18,197,006 Investments, at fair value 2,984,003 2,771,469 Exploration and evaluation assets          49,681,931          45,141,148 Total assets 65,314,223 67,650,272 Total liabilities 1,424,030 1,150,868 Share capital, warrants and broker warrants, contributed surplus 120,678,452 120,550,480 Foreign currency translation reserve (2,570,231) (928,739) Deficit (54,218,028) (53,122,337) Working Capital        13,614,107        20,793,675 During the three months ended September30, 2012, the Company spent net cash of $5,609,983 on exploration andevaluation assets as compared to $2,961,266 during the three months ended   September 30, 2011.    Brownstone also advises that the Boardof Directors has approved the grant of 2,390,000 options to certain officers,directors, employees and consultants of the Company.  Each option is exercisable into one commonshare of the Company for a period of five years, vesting quarterly for a periodof 18 months, at a price equal to the closing price of the Company’s commonshares on the TSX Venture Exchange on November 28, 2012.Brownstone is currently participating inseveral oil and gas exploration projects based in Colombia, Israel, UnitedStates (Colorado/Utah and Oregon), and Argentina.AboutBrownstone BrownstoneEnergy Inc. is a Canadian-based, energy focused company with direct interestsin oil and gas exploration projects, including varying interests in threeoff-shore Israel concessions and in four Colombian blocks in the Llanos basin,as well as other oil and gas interests worldwide. By owning and managing adiversified portfolio of energy-based projects, Brownstone providesshareholders with a unique energy investment alternative.  For additional information, please seeBrownstone's website:www.brownstoneenergy.com.NeitherTSX Venture Exchange nor its Regulation Services Provider (as that term isdefined in the policies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.For further information, please contact:Jonathan Schroeder, P. Geoph., President and COO(403) 660-2894schroeder@brownstoneenergy.com Gerry Feldman, ChiefFinancial Officer(416) 941-8900feldman@brownstoneenergy.comRichard Patricio, Vice-PresidentCorporate and Legal Affairs(416) 941-8900info@brownstoneenergy.com

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