On March 10, 2011 Daylight Energy Ltd. (TSX:DAY) ("Daylight") was informed by
SemCAMS, operator of the K3 Gas Plant and Gathering System, that a significant
mechanical failure had occurred at the K3 Gas Plant. As a result of the
mechanical failure, processing capacity at the K3 Gas Plant has been temporarily
suspended in order to perform the necessary repair work. This suspension has
resulted in a significant portion of Daylight's liquids rich natural gas
production from its West Central and Wapiti Montney properties being temporarily
shut in (approximately 8,500 boe per day net) until the repairs are completed
and the facility is brought back on line. It is currently estimated that
processing at the K3 Gas Plant will recommence on or about March 22, 2011. The
impact of the suspension on average 2011 first quarter and annual production is
estimated at 1,500 boe per day and 400 boe per day, respectively.


Daylight is a growing intermediate 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
in the premier Deep Basin area 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 D convertible debentures
trade on the TSX under the symbols DAY.DB.C and DAY.DB.D, respectively. 


Information Regarding Disclosure in This News Release 

The term "boe" is utilized by Daylight in relation to reserves or production to
combine the volumetric measures of natural gas, light oil, heavy oil, and NGLs
to a common "barrel of oil equivalent" term of measurement. Natural gas volumes
have been converted at the ratio of 6,000 cubic feet of natural gas to one boe
and this conversion ratio is based upon an energy equivalent conversion method
primarily applicable at the burner tip and does not represent value equivalence
at the wellhead. Light oil, heavy oil, and NGLs have been converted at the ratio
of one barrel of these liquids to one boe. Use of the terms boe and amounts per
boe without reference to the underlying commodity may be misleading.


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 anticipated
timing to complete the repair work to the K3 gas plant and the impact on
Daylight's 2011 first quarter and annual production.


The forward-looking statements and information in this press release are based
on certain key expectations and assumptions made by Daylight. 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. 


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. Additional information on the 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's Annual Information Form for the year ended December
31, 2010 and Management's Discussion and Analysis for the year ended December
31, 2010, each of which may be accessed on Daylight's SEDAR profile at
www.sedar.com or on our website at www.daylightenergy.com.


The forward-looking statements 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.


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