Annual General and Special Meeting June 1, 2011

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 estimatedcosts associated, therewith working capital, production 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 and prospective investors in the Company’s securities to not place undue reliance on forward-lookinginformation 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 todiffer materially from those anticipated by WesternZagros. Readers are also cautioned that disclosed test rates and potential production rates may not be indicative of ultimate production levels.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 asrequired 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, future capital and otherexpenditures (including the amount, nature and sources of funding thereof), future economic conditions, insurance recoveries, future currency and exchange rates, continued political stability,continued participation of, and resolution of discussions with, the Company’s co-venturers, and the Company's continued ability to obtain qualified staff and equipment in a timely and costefficient manner. In addition, budgets are based upon WesternZagros' current exploration plans and anticipated costs both of which are subject to change based on, among other things, theactual results of drilling activity, the outcome of discussions with the Company’s co-venturersunexpected delays and changes in market conditions. Although the Company believes theexpectations and assumptions reflected in such forward-looking information are reasonable, they may prove to be incorrect.

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

All of WesternZagros’ assets are located in Kurdistan. As such, WesternZagros is subject to political, economic, and other uncertainties, including, but not limited to, the uncertainty ofnegotiating with foreign governments, expropriation of property without fair compensation, adverse determinations or rulings by governmental authorities, changes in energy policies or thepersonnel administering them, nationalization, currency fluctuations and devaluations, disputes between various levels of authorities, arbitrating and enforcing claims against entities that mayclaim sovereignty, authorities claiming jurisdiction, potential implementation of exchange controls, royalty and government take increases and other risks arising out of foreign governmentalsovereignty over the areas in which WesternZagros’ operations are conducted, as well as risks of loss due to civil strife, acts of war, guerrilla activities and insurrections. WesternZagros’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, amongother 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, taxationpolicies, 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,continued receipt of insurance proceeds, its co-venturers’ continued participation in the exploration activities under the PSC, and the ability of the Corporation to obtain financing to developreserves. WesternZagros’ cash balance may not be sufficient to fund its ongoing activities at all times and carry the KRG’s 20 per cent interest under the PSC. From time to time, WesternZagrosmay 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 increasethe 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 opportunitiesand 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 negativelyimpact WesternZagros’ 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 and January 17, 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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The Kurdistan Region of Iraq Hunting Grounds for Giant Fields

• Tremendous potential of the region long recognized by industry

• WesternZagros in early: hand-picked its exploration acreage

• Our PSC lands contain a large number of prospects and leads with multiple reservoirs: light oil prone

• Kurdamir and GarmianBlocks: Size of the prize is over 1.75 billion BOEs of prospective resources*

• Discoveries at both Kurdamir-1 and Sarqala-1 wells 3

* Independently audited by Sproule International Limited

Political Environment Showing Significant Progress

October 2005 Iraqi constitution adopted

February 2007 Draft Federal Petroleum Law

June 2007Agreement on initial revenue sharing -17% of net oil revenues from all regions in Iraq go to Kurdistan

August 2007 KRG Petroleum Law approved

March 2010 Iraq holds its first fully-supported democratic election

December 2010 Iraq President, Prime Minister and cabinet appointed

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February 2011

Iraq Prime Minister announces Kurdistan PSCs will be respected

Oil exports from Kurdistan resume

April 2011

Kurdistan Prime Minister presents first KRG oil export statement to Iraq federal finance ministry – over 5 million barrels delivered to state marketing agency since February 2011

May 2011

Federal Ministry of Finance confirms release of the first oil export payment to KRG contractors (approximately 50% of net revenues)

Multiple Prospects: Oil & Gas

Garmian Block Drilling Plans

Mil Qasim-1 (Third commitment well)

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Topkhana-1 well

(Talisman - Block 39)

- Drilling commenced in Q1 2011

- WesternZagros has no ownership interest

Significant well in adjacent Block

Kurdamir Block

Drilling Plans

Kurdamir-2 well

Oil Discovery at Sarqala (Garmian Block)

• Sarqala-1 sidetrack completed

• The Jeribe Formation flowed light, 40° API oil at a stabilized rate of 6,000 bopd over the 24 hours of the initial flow period (no stimulation, no water)

Sarqala-1 Well 6

Follow On Opportunity at Mil Qasim-1 (Garmian Block)

• Younger and shallower structure than Sarqalaand the geology and drilling is expected to be much simpler

• Crest lies approximately three kilometres from Sarqala-1

• Anticipate spud date of Mil Qasim-1 is July, 2011

• Anticipate oil bearing sandstones in Upper Fars reservoir

Sarqla-1 Well Oil Discovery

Mil Qasim-1 (Third Commitment Well) 7

Kurdamir-Topkhana Structure: The Potential Oligocene Reward

Oil is confirmed in the Oligocene reservoir

• Analysis of condensate discovered on crest of Kurdamir-Topkhana Structure indicates an oil source

• Gas cap on crest of Kurdamir-TopkhanaStructure is similar to existing giant oil fields in Iraq and Iran

The flanks of the Kurdamir-Topkhana Structure appear most promising

• Gas caps are frequently associated with downdip oil columns on the flanks of the structure or deeper oil columns in the Cretaceous

• Producing oil fields with similar structures: Bai Hassan, Kirkuk, Khabbaz and Kor Mor

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Kurdamir-Topkhana Structure

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• Topkhana well results in 2011 to confirm whether the Kurdamir Structure extends off the Block

WesternZagros has no ownership interest in this well

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

• Potentially one of the world’s biggest oil fields• Mean prospective resources: 585 MMbbls on

Kurdamir Block alone

Proposed PSC Amendments – Kalar Bawanoor Block Split

• WesternZagros, Talisman, and the KRG will divide the original Kalar-Bawanoor Block into two contract areas, each under a separate PSC.

• The northern area (340 sq km) will remain under an amended version of the original PSC and will be called the Kurdamir Block. It will contain the Kurdamir discovery.

• The southern area (1,780 sq km) will be governed under a new PSC and will be called the Garmian Block. It will contain the Sarqala discovery and the Mil Qasim, Qulijan and Baranprospects.

• WesternZagros’ 40% ownership and economic terms will remain unchanged in both PSC agreements.

• WesternZagros will retain operatorship of the Garmian Block. Talisman will become operator of the Kurdamir Block.

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Near Term Potential Value Creation: 2011-2012

Gross Unrisked Prospective Resources (Audited)

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

(Tested)

Principles for Long-Term Success

Conservative reporting

Financial flexibility

Highly attentive to safety

On-the-ground relationships

Three Wells to Target over 1 Billion BOEs of Prospective Resources

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$30 - 35 million gross cost

$60 -65 million gross cost

$60 -65 million gross cost

* Includes the costs of casing repair operations, estimated at approximately $10 million, with WesternZagros funding the subsequent sidetracking and testing operations 100 per cent and expects the gross costs associated with these operations to be in the range of $10 to 15 million.

Sarqala-1 Re-Entry Oil discovery in the Jeribe Formation

Mil Qasim-1 Estimated 2011 Q2 spud

Kurdamir-2 Estimated 2011 Q4 spud

$25- 30 million gross cost *

Financial Position (US$ millions)

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Working Capital Position (as at December 31, 2010)

Cash 31.5

Non-Cash Working Capital (11.6)

Insurance Receivable * 17.6

Working Capital 37.5

Proceeds of March 10, 2011 Financing 41.0

Total 78.5

2011 Capital and Operating Budget

Drilling and Related Operations ** 80.0

Field Office 5.0

G&A and Business Development 10.0

2011 Capital and Operating Budget 95.0

• Subsequent to December 31, 2010, WesternZagros has received $16.2 million of the insurance receivable balance and continues to pursue the remaining amounts.

** Includes the requirement for the Corporation to fully fund the Sarqala-1 re-entry and Mil Qasim-1 well and to fund its share of the costs of Kurdamir-2 well. Although WesternZagros is fully funding the Sarqala-1 re-entry and the Mil Qasim-1 well, 40% of these costs (approximately $25 to $30 million) will be refunded by the third party participant when this interest is assigned by the KRG.

Multiple Transportation and Market Options

• Well-established oil export routes:

• Mediterranean and Persian Gulf

• Potential pipeline capacity:

• Kirkuk-Ceyhan System

• Kirkuk-Basra

• Baniyas-Syria System

• Proposed system within

Kurdistan

• WesternZagros early production,

likely from Sarqala-1 well,

supplied to Kirkuk-Ceyhan

pipeline.

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WesternZagros Kurdamir and Garmian Blocks Located for Success

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

degrees API or heavier*

• Located south of the mountain front

• 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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* Source: WesternZagros confidential files

Long-term benefits for the local community: health, water, education and recreation

Strong focus on health, safety and security

Outstanding employees

Corporate Social Responsibility

westernzagros.com

Head Office

600, 440 – 2nd Avenue S.W.

Calgary, Alberta, Canada

T2P 5E9

Tel: 1-403-693-7017

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

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