ARN

Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan" or the "Corporation") has
completed the start-up of its recently constructed oil gathering pipeline in the
Ethel area. This new pipeline will pump Arcan's production from 30 horizontal
wells in the Ethel field for processing at the Deer Mountain Unit #2 facility.
In addition, Pembina Pipeline Corporation ("Pembina") has completed construction
on the new Moosehorn pipeline, replacing an older line that had been operating
at reduced capacity since it was impacted by severe weather in late 2011. This
new infrastructure will enable Arcan to deliver its entire production volume to
the Pembina sales terminal via pipeline. 


"The start-up of our Ethel pipeline is a significant milestone for Arcan's field
operations," said Arcan's President, Doug Penner. "Together with Pembina's
Moosehorn project, these two pipeline systems will contribute to lower operating
costs and reduced downtime across both the Deer Mountain Unit and Ethel. The new
infrastructure provides the foundation for full field development of this
long-life, light oil asset." 


Arcan remains on track to meet its operational objectives for 2012. The
Corporation expects second quarter production to be approximately 5,600 barrels
of oil equivalent per day and third and fourth quarter production to average
over 6,000 barrels of oil equivalent per day. Arcan has recently finished
drilling the last well on a four-well pad in the northwest portion of its Ethel
development, which will be completed and tied in by the end of the third quarter
of 2012. Arcan plans to target higher impact wells using a single drilling rig
for the remainder of the year, which is consistent with its strategic direction
of bringing capital spending into better balance with cash flow for the second
half of 2012.


Upcoming Conference Presentation

Arcan is scheduled to present at the Stifel Nicolaus Energy Conference taking
place in Montreal at the Hotel Omni Mont-Royal on June 7, 2012. Investors are
invited to listen to the live webcast at 9:05 a.m. ET via
http://www.veracast.com/webcasts/stifel/energy2012/41102112.cfm. An archive of
the webcast will be available for a 30 day period following the conference.


Annual and Special Meeting

Arcan has set its annual and special meeting to be held at 3:00 p.m. MT on
Thursday, June 21, 2012. The event will take place in the McMurray Room of the
Calgary Petroleum Club at 319 - 5th Avenue SW, Calgary, Alberta.


About Arcan Resources Ltd.

Arcan Resources Ltd. is an Alberta, Canada corporation that is principally
engaged in the exploration, development and acquisition of petroleum and natural
gas located in Canada's Western Sedimentary Basin.


Legal Advisories

Barrels of oil equivalent ("BOE") may be misleading, particularly if used in
isolation. A BOE conversion ratio of six thousand cubic feet ("Mcf") of natural
gas to one barrel ("bbl") of oil is based on an energy equivalency conversion
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. In addition, given that the value ratio based on
the current price of oil as compared to natural gas is significantly different
from the energy equivalent of six to one, utilizing a BOE conversion ratio of 6
Mcf: 1 bbl would be misleading as an indication of value. 


Forward-Looking Information and Statements

This press release contains certain forward-looking information and statements
within the meaning of applicable securities laws. The use of any of the words
"expect", "will", "plans" and similar expressions are intended to identify
forward-looking information or statements. In particular, but without limiting
the foregoing, this press release contains forward-looking information and
statements pertaining to, among other things, the following: 2012 anticipated
production; anticipated timing of the completion and tie-in of Arcan's last well
on its four-well pad in the northwest portion of the Ethel Unit; Arcan's
expectations respecting its newly completed oil gathering pipeline in the Ethel
area and the Moosehorn pipeline; expectations respecting the impact of pipeline
infrastructure on operating costs, downtime and Arcan's future development;
Arcan's expectations respecting its growth and activities throughout the
remainder of 2012; Arcan's ability to execute on the remainder of its 2012
business plans and strategic direction; future growth including development,
exploration, acquisition, construction and operational activities and related
expenditures. 


The forward-looking information and statements contained in this press release
reflect several material factors and expectations and assumptions of Arcan
including, without limitation: that Arcan will continue to conduct its
operations in a manner consistent with past operations; the accuracy of current
horizontal production data, historical well production and waterflood results;
the general continuance of current or, where applicable, assumed industry
conditions; continuity of reservoir conditions across Arcan's Swan Hills land
base and its Ethel oil pool; availability of debt and/or equity sources to fund
Arcan's capital and operating requirements as needed; the continuance of
existing and, in certain circumstances, proposed tax and royalty regimes; the
accuracy of the estimates of Arcan's reserve volumes; and certain commodity
price and other cost assumptions and estimates. 


Arcan believes the material factors, expectations and assumptions reflected in
the forward-looking information and statements are reasonable at this time but
no assurance can be given that these factors, expectations and assumptions will
prove to be correct. The forward-looking information and statements included in
this press release are not guarantees of future performance and should not be
unduly relied upon. Such information and statements involve known and unknown
risks, uncertainties and other factors that may cause actual results or events
to differ materially from those anticipated in such forward-looking information
or statements including, without limitation: for reasons currently
unanticipated, Arcan's production rates may not reach the levels currently
expected; the application and modification of horizontal, multi-stage fracture
technologies may not have the impact currently anticipated by Arcan; the future
drilling locations identified by Arcan may prove to be unsuitable or unavailable
and drilling on the locations identified may not occur; water injection at
additional sites in the Deer Mountain Unit #2 or in the Ethel field may not have
the impact on production currently anticipated by Arcan, the operation of
Arcan's oil gathering pipeline and the Moosehorn pipeline may not have the
impact on operating costs, downtime and future development currently anticipated
by Arcan and there may be interruptions of service in the future; Arcan's
capital spending and operational plans for 2012 may not be completed in the
timelines anticipated, in the manner anticipated or at all and the execution of
such plans may not have the results currently anticipated by Arcan; changes in
tax or environmental laws or royalty rates; increased debt levels or debt
service requirements; inaccurate estimation of Arcan's oil and gas reserves
volumes; limited, unfavourable or no access to debt or equity capital markets;
increased costs and expenses; the impact of competitors; changes in commodity
prices; reliance on industry partners; and certain other risks detailed from
time to time in Arcan's public disclosure documents including, without
limitation, those risks identified in this press release, and in Arcan's annual
information form for the year ended December 31, 2011, copies of which are
available on Arcan's SEDAR profile at www.sedar.com.


The forward-looking information and statements contained in this press release
speak only as of the date of this press release, and Arcan does not assume any
obligation to publicly update or revise them to reflect new events or
circumstances, except as may be required pursuant to applicable laws.

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