Daylight Energy Provides Update on Non-Core Asset Dispositions and Redemption of Convertible Debentures

Daylight Energy Ltd. ("Daylight" or the "Corporation") (TSX:DAY) is pleased to
announce that the Corporation has executed purchase and sale agreements relating
to the disposition of certain non-core assets for gross cash proceeds of
approximately $70 million, prior to customary closing adjustments. These
dispositions include 8 separate transactions with aggregate production of
approximately 1,500 boe/d (50% natural gas / 50% liquids) which generates a
positive transaction metric of over $46,000 per flowing boe/d. Four of the
transactions have closed concurrent with execution of the purchase and sale
agreements during Q4 2010, with the other 4 transactions expected to close in
December 2010 with effective dates of October 1, 2010. In addition, Daylight has
executed letters of intent and is in discussions with several other parties
regarding the disposition of further non-core assets with additional aggregate
production of approximately 1,500 boe/d. 


These dispositions are a continuation of Daylight's strategic repositioning of
our portfolio towards growth by monetizing non-core assets and focusing our
financial and technical resources on our core growth assets at Pembina, West
Central Alberta and Elmworth in the Deep Basin. The net proceeds from these
dispositions will initially be used to repay bank indebtedness under Daylight's
credit facilities. Daylight's mid year credit facility review has been completed
and our borrowing base has been adjusted to $625 million. This adjustment
reflects the sale, and anticipated sale, of the above noted non-core assets plus
other non-core asset dispositions completed earlier during 2010 for combined
cumulative proceeds of approximately $200 million, net of the positive impact of
our highly successful 2010 internal organic growth program.


The disposition transactions that have not yet closed are subject to customary
approvals and other industry standard closing conditions. There is no guarantee
that these disposition transactions will be completed or that definitive
purchase and sale agreements will be negotiated with parties interested in
Daylight's other non-core assets offered for disposition.


FirstEnergy Capital Corp. has acted as exclusive financial advisor to Daylight
with respect to the non-core asset dispositions.


Redemption of Series B, 8.5% Convertible Debentures 

Daylight has also completed the previously announced redemption of our Series B,
8.5% convertible unsecured subordinated debentures ("Series B Debentures").
Other than $2.65 million aggregate principal amount of Series B Debentures which
were redeemed by Daylight through the issuance of 289,241 common shares, all of
the Series B Debentures were converted prior to the November 23, 2010 redemption
date. As a result, an aggregate of 6,166,793 common shares were issued upon
conversion and redemption of the $53.2 million face value of Series B Debentures
that were outstanding as at September 30, 2010. All interest accrued and unpaid
on the Series B Debentures up to but excluding the redemption date was paid in
cash. The redeemed Series B Debentures (DAY.DB.B) have been cancelled and
delisted from the Toronto Stock Exchange ("TSX"). Daylight's remaining
convertible debentures outstanding have a combined face value of $247.5 million
composed of $75.0 million of Series C Convertible Debentures and $172.5 million
of Series D Convertible Debentures.


Daylight is a growing intermediate light oil and natural gas producing company
with a high quality suite of resource play assets in Western Canada. Our highly
focused team utilizes our technical expertise in exploitation, development and
acquisitions to create long-term value for our shareholders. Our team has
developed a multi-year inventory of repeatable, low risk exploitation resource
play projects with substantial potential reserve additions on assets we
currently own and control in the premier Pembina Cardium light oil fairway and
Deep Basin areas of Alberta and British Columbia.


Daylight has approximately 210 million common shares outstanding which trade on
the TSX under the symbol DAY. Daylight Series C and Series D convertible
debentures trade on the TSX under the symbols DAY.DB.C and DAY.DB.D,
respectively.


A corporate presentation is available on Daylight's website at
www.daylightenergy.com.


ADVISORY:

Forward-Looking Information and Statements

This press release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking statements or
information. More particularly and without limitation, this press release
contains forward-looking statements and information concerning Daylight's
intention to dispose of certain non-core assets. 


The forward-looking statements and information in this press release are based
on certain key expectations and assumptions made by Daylight, including
expectations and assumptions concerning: prevailing and future commodity prices
and exchange rates; applicable royalty rates and tax laws; future production
rates; the performance of existing wells; application of existing technologies
and future advancements in technology to Daylight's operations and drilling
activities; the success obtained in drilling new wells; the inventory of new
drilling locations; the sufficiency of budgeted capital expenditures in carrying
out planned activities; the availability and cost of labour and services,
including but not limited to completion equipment and services; adequate weather
and environmental conditions for drilling and completion activities, including
transportation of associated equipment; the receipt, in a timely manner, of
regulatory and third party approvals; the receipt of required regulatory and
other third party approvals for the non-core asset dispositions, satisfaction of
other closing conditions relating to such dispositions and Daylight's ability to
negotiate terms of definitive purchase and sale agreements with parties
interested in Daylight's non-core assets offered for disposition. 


Although Daylight believes that the expectations and assumptions on which such
forward-looking statements and information are based are reasonable, undue
reliance should not be placed on the forward-looking statements and information
because Daylight can give no assurance that they will prove to be correct. There
is no representation by Daylight that actual results achieved during the periods
identified in this press release will be the same in whole or in part as those
forecast. 


Since forward-looking statements and information address future events and
conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to the risks
associated with the oil and gas industry in general such as: operational risks
in development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of reserve and resource (including original oil in place) estimates;
the uncertainty of estimates and projections relating to production, costs and
expenses; health, safety and environmental risks; risks associated with weather
and the impact on drilling and completion activities and the transportation of
associated equipment; commodity price and exchange rate fluctuations; marketing
and transportation of petroleum and natural gas and loss of markets;
environmental risks; competition; risks associated with utilizing existing
technologies and future technological advancements in Daylight's operations and
drilling activities; failure to realize the anticipated benefits of
acquisitions; risks regarding the integration of acquired entities and assets;
incorrect assessment of the values of acquisitions; Daylight's ability to obtain
all third party and regulatory approvals necessary to dispose of the non-core
asset and Daylight's, and the other parties to the non-core disposition
transactions, ability to satisfy the closing conditions to complete the sale of
the non-core assets and Daylight's ability to negotiate terms of definitive
purchase and sale agreements with parties interested in Daylight's other
non-core assets offered for disposition. Readers are cautioned that the
foregoing list of risk factors is not exhaustive. Additional information on
these and other factors that could affect the business, operations or financial
results of Daylight are included in reports on file with applicable securities
regulatory authorities, including but not limited to Daylight Resources Trust's
Annual Information Form for the year ended December 31, 2009 and Daylight
Resources Trust's Notice of Annual and Special Meeting and Information Circular
and Proxy Statement dated April 7, 2010, each of which may be accessed on
Daylight Resources Trust's (the predecessor to Daylight) SEDAR profile at
www.sedar.com. 


The forward-looking statements and information contained in this press release
are made as of the date hereof and Daylight undertakes no obligation to update
publicly or revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise, unless so required by
applicable securities laws. 


Barrels of Oil Equivalent

"Boe" or "barrel of oil equivalent" means barrel of oil equivalent on the basis
of 1 Boe to 6,000 cubic feet of natural gas. Boe's may be misleading,
particularly if used in isolation. A Boe conversion ratio of 1 Boe for 6,000
cubic feet of natural gas is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
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