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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 2, 2009) - Hemisphere Energy Corporation (TSX VENTURE:HME) is pleased to announce the successful closing of the first tranche of its private placement announced November 4, 2009. This first tranche consisting of the sale of 3,925,000 units at $0.20 per unit, for proceeds of $785,000. Each unit consists of one common share and one share purchase warrant, with each warrant entitling the holder to purchase one additional common share at a price of $0.30 until December 1, 2010. The proceeds raised will be used for development and exploration projects, financing acquisitions and general corporate purposes. In connection with the closing of the first tranche, Hemisphere Energy issued the following securities to Canaccord Capital Corporation in payment of a finder's fee: (a) 151,515 common shares; and (b) 248,500 share purchase warrants, each entitling the holder to purchase one common share at a price of $0.30 until December 1, 2010.

All of the securities issued in connection with the closing of this first tranche, including the securities issued in payment of the finder's fee, are subject to a hold period in Canada until April 2, 2010.

Hemisphere Energy has also attained its operator's licence for the province of Alberta. This provides the Company the ability to perform oil and gas operations on its existing Alberta property in Sylvan Lake as well as new project areas.

Hemisphere Energy has production from 13 wells and has an inventory of numerous low risk development drilling locations within its properties in the Trutch area of northeast British Columbia and the Sylvan Lake property in central Alberta. The Company continues to focus on developing projects with low risk drilling opportunities, multiple zones of potential and long-life reserves that will continue to increase the Company's production, reserves and cash flow.

The Company's management and board view the market conditions as providing an excellent opportunity to aggressively pursue value-added acquisitions and farm-ins. Hemisphere Energy continues to evaluate numerous opportunities that complement its producing Trutch and Sylvan Lake properties in western Canada.

HEMISPHERE ENERGY CORPORATION

Don Simmons
President & CEO

For further information on Hemisphere Energy Corporation, visit our website at [ www.hemisphereenergy.ca ].

Forward-looking Statements

This news release contains "forward-looking statements" that are based on Hemisphere's current expectations, estimates, forecasts and projections. These forward-looking statements include statements regarding Hemisphere's outlook for our future operations, plans and timing for the commencement or advancement of exploration and development activities on our properties, and other expectations, intention and plans that are not historical fact. The words "estimates", "projects", "expects", "intends", "believes", "plans", or their negatives or other comparable words and phrases are intended to identify forward-looking statements. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Many of these factors are beyond the control of Hemisphere. Consequently, all forward-looking statements made in this news release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by Hemisphere will be realized. For the reasons set forth above, investors should not place undue reliance on such forward-looking statements. Hemisphere disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of factors beyond its control, and actual results may differ materially from the expected results.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.