Probe Announces Expiration of Debt Restructuring Agreement, Engagement of a Restructuring Agent, Filing of Chapter 11 Bankruptcy

Probe Resources Ltd. (TSX VENTURE:PBR) (the "Company" or "Probe") announces that
the Company's Debt Restructuring Agreement (the "DRA") which became effective on
August 31, 2009 (see news release dated September 21, 2009) has expired and,
accordingly, the Company's Board of Directors has appointed a restructuring
agent to assist with the Company's restructuring efforts. Additionally, the
Company's U.S. subsidiaries have filed voluntary Chapter 11 petitions in U.S.
Bankruptcy Court.


DEBT RESTRUCTURING AGREEMENT

The DRA was established to schedule repayment of the Company's outstanding past
due trade payables and credit agreements in an orderly manner consistent with
monthly collected revenues, following deduction for well and lease operating
costs, transportation payments and royalty payments as well as general and
administrative expenses of the Company. The amended DRA expired on October 15,
2010 and did not have established renewal or extension provisions for
outstanding balances at the time of expiration. As a result of the expiry of the
DRA, the Company's Forbearance Agreement with its primary lender has also
expired resulting in modifications to the cash management process that has been
in place since August 31, 2009. The Company's primary lender has also exercised
its right to take control over funds in the respective control accounts of
Probe's operating subsidiaries. 


CHIEF RESTRUCTURING OFFICER APPOINTMENT

Probe's Board of Directors has formally engaged Energy Spectrum Advisors Inc.
("ESA") as the Company's exclusive financing advisor and restructuring agent.
ESA will immediately undertake a restructuring plan on behalf of Probe in the
best interests of the Company and its stakeholders.


Also as part of its terms of engagement, Coy Gallatin, Senior Vice President of
ESA will act as Chief Restructuring Officer of the Company effective
immediately. Mr. Gallatin has been an advisory professional with ESA since 2008.
Prior to joining ESA, Mr. Gallatin served three years as Executive Vice
President and manager of Energy Lending for Bank of Texas, an affiliate of BOK
Financial. In addition, he has served as manager of other BOK Financial
affiliated energy groups. Mr. Gallatin brings with him over 25 years of
experience with financial institutions in various energy-related fields,
including all of the major mid-continent markets.


CHAPTER 11 FILING

The Company's U.S. subsidiaries today filed voluntary Chapter 11 petitions in
the U.S. Bankruptcy Court for the Southern District of Texas in Houston, Texas.
Probe and its subsidiaries will continue to operate their businesses and manage
their properties as debtors in possession. 


The bankruptcy filing follows the expiration of the DRA and Forbearance
Agreements, and the resulting sweep of all unrestricted cash accounts by the
Company's primary lender. In addition, the emergency cash fund held in
restricted accounts by the Creditors' Agent under the DRA was disbursed to
creditors. This left the Company with no operating cash. Management and its
primary lender had previously proposed several restructuring plans that were
initially agreed to by both secured and unsecured creditors, but none of the
plans were executed. Ultimately, the primary lender and Creditors' Agent
indicated to Management that no further plans would be considered in absence of
a Bankruptcy filing.


"The loss of all cash flow as a result of Hurricane Ike, unprecedented declines
in commodity prices, the mechanical failure of the EC 37 A-2 well, and
difficulty in accessing affordable capital have resulted in the Company's
current situation. We are hopeful that the restructuring of the Company through
the Bankruptcy process will result in the ability to fully realize the
significant value of the Company's undeveloped assets," stated Scott Broussard,
Probe's Chief Executive Officer and Chairman of the Board.


OPERATIONAL UPDATE 

The Company provides an operational update on its development activities in the
Gulf of Mexico as follows:


High Island 115

After an extended shut in due to decommissioning of the host processing platform
in HI 71, related disconnection of the sales export pipeline, and installation
of production facilities, the High Island B-1 Sidetrack well recommenced
production in July 2010 and is currently producing approximately 6.5 MMCF/D.
Probe, non-operator of the well, currently owns a 27.50% working interest ("WI")
and 22.06% net revenue interest ("NRI") in the well.


East Cameron 36

The EC 36 A-1 well continues to produce at a gas rate of 5.7 MMCF/D with a
condensate rate of 50 BCPD and flowing tubing pressure of 2,310 psi. Probe is
the operator and holds a 52% WI and a 35.62% NRI prior to project payout
("BPPO"). Petrodome EC, LLC owns a 44% WI and 32.10% NRI BPPO.


East Cameron 37

Remediation efforts have been unsuccessful in resolving the mechanical issues in
the EC 37 A-2 well. The Company is evaluating its plans to plug back to a gas
bearing sand in the current well bore. The well may ultimately be sidetracked to
re-capture Rob L reserves and to evaluate deeper objectives. The Company holds a
52% WI and 35.36% NRI BPPO. Petrodome EC, LLC owns a 44% WI and 32.10% NRI BPPO.


East Cameron 246

The EC 246 #2 well was drilled, cased, and suspended in 2008. Probe is reviewing
its plans to complete the development of the discovery early in 2011. The
development consists of the installation of production facilities, an export
pipeline, and completion of the well. The expected gross production rate from
this formation is 8-12 MMCF/D plus associated condensate. Probe's independent
reserve engineers estimated probable reserves of 11.1 BCF gas and 5,600 BBLS
condensate. Probe is operator and currently holds a 90% WI and a 61.60% NRI in
the EC 246 Well #2 BPPO. The ultimate restructuring plan will address potential
sources of funding required to complete the development of the discovery. 


South Timbalier 214

The ST 214 #A-6 Sidetrack well is currently producing at a nominal gas rate of
2.0 MMCF/D and condensate rate of 20 BCPD. It also produces approximately 2,250
BWPD. The well has produced approximately 10.5 BCF of gas and 117,000 barrels of
condensate to date. Production has significantly exceeded the projected proved
reserve estimates conducted by Probe's independent reservoir engineers at the
time of initial production. The independent reserve engineers are currently
updating the reserve estimates to reflect actual production. Probe is the
operator and holds a 100% WI and 68.50% NRI BPPO.


South Timbalier 198

Probe will be evaluating plans to drill the ST 198 A-7 Sidetrack 2 well. The
lease was acquired in 2009 subsequent to purchasing the platform used to develop
the ST 214 A-6 Sidetrack well. Probe's independent reserve engineers have
estimated approximately 9.3 BCF gas and 167,000 BBLS condensate as proved
undeveloped reserves and 8.7 BCF gas and 212,000 BBLS condensate as probable
reserves with the potential for additional reserves in other categories. Probe
is currently seeking a joint venture partner to facilitate the drilling and
completion of a sidetrack of an existing well on the platform to develop these
reserves. The ultimate restructuring plan will address potential sources of
capital required to fund Probe's share of completion costs. Probe is operator
and currently holds a 100% WI and 70% NRI in the lease. 


The foregoing approximations are estimates only based on available technical
data and are not contained in a compliant National Instrument 51-101 reserve
report and therefore should not be relied upon in making any investment
decision. As part of its annual fiscal reporting requirement, Probe has engaged
its independent engineering firm to complete a National Instrument 51-101 report
with respect to the possible additional reserves which will be filed publicly as
soon as such report is available. In addition to the risks with respect to the
completion of the reserve report, Probe will require funding in order to develop
any additional reserves.


ABOUT PROBE RESOURCES LTD.

The Company, along with its wholly-owned subsidiaries located in The Woodlands,
Texas, is an oil and natural gas exploration and production company focused on
generating, acquiring, developing, and operating drilling prospects within the
Texas and Louisiana Outer Continental Shelf of the Gulf of Mexico.


ABOUT ENERGY SPECTRUM ADVISORS INC.

ESA was founded in 1997 to provide high-quality, focused oil & gas property
sales and private capital placement advisory services to energy companies
focused on the upstream oil and gas sector. Since 1997, ESA has closed more than
90 transactions with a total aggregate transaction value exceeding $5.0 billion.


ON BEHALF OF PROBE RESOURCES LTD.

Scott Broussard, Chief Executive Officer and Chairman of the Board

This news release does not constitute an offer to sell or a solicitation of an
offer to buy any of the Company's securities in the United States. The Company's
securities have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the United States or to
U.S. persons unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is available.


Statements in this press release may contain forward-looking information
including expectations of future operations (including drill rig commitments and
use of proceeds), commerciality of any gas discovered, production rates,
operating costs, commodity prices, administrative costs, commodity price risk
management activity, acquisitions and dispositions, capital spending, access to
credit facilities, income and oil taxes, regulatory changes, and other
components of cash flow and earnings. The reader is cautioned that assumptions
used in the preparation of such information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from those
predicted, a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company. These risks
include, but are not limited to, the risks associated with the oil and gas
industry, commodity prices and exchange rate changes. Industry related risks
could include, but are not limited to, operational risks in exploration,
development and production, delays or changes in plans, risks associated to the
uncertainty of reserve estimates, or reservoir performance, health and safety
risks and the uncertainty of estimates and projections of production, costs and
expenses. The reader is cautioned not to place undue reliance on this
forward-looking information.
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