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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 23, 2009) - Hemisphere Energy Corporation (TSX VENTURE:HME) is pleased to announce the successful closing of its private placement announced December 14, 2009. This "flow through" private placement consisted of the sale of 850,000 units at $0.24 per unit, for proceeds of $204,000. Each unit consisted of one "flow through" common share and one-half "non-flow through" share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of $0.35 until December 22, 2010. The proceeds raised will be used for development and exploration activities.

All of the securities issued in connection with the closing of this private placement are subject to a hold period until April 23, 2010.

Hemisphere Energy has been active on its Sylvan Lake property in central Alberta and has successfully re-completed an Edmonton Sand natural gas well. Pressure recorders have been installed to further evaluate well productivity and the Company anticipates tie-in of the well in early 2010.

Hemisphere Energy currently 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 focuses 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.

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

HEMISPHERE ENERGY CORPORATION

Don Simmons
President & CEO

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.