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VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Hemisphere Energy Corporation (TSX VENTURE:HME) is pleased to announce that it has arranged the following non-brokered private placements:

(a) up to 2,500,000 units at a price of $0.40 per unit to raise gross proceeds of up to $1,000,000, with each unit to consist of one common share and one-half (1/2) of a non-transferable share purchase warrant, with each whole warrant to entitle the holder to purchase one additional common share at a price of $0.60 for a period of 18 months from closing; and

(b) up to 1,200,000 flow-through units at a price of $0.45 per flow-through unit to raise gross proceeds of up to $540,000, with each flow-through unit to consist of one flow-through common share and one-half (1/2) of a share purchase warrant, with each whole warrant to entitle the holder to purchase one additional common share at a price of $0.60 for a period of 18 months from closing.

The proceeds from these private placements will be used to fund exploration and development expenditures on Hemisphere's oil and gas properties and for working capital purposes.

Hemisphere is focused on building and developing core areas that provide low to medium risk drilling opportunities to increase production, reserves and cash flow.

HEMISPHERE ENERGY CORPORATION

Don Simmons, President and CEO

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of the Company 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.

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 exploration and other risk 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 release.