4th Vertical Well, Q3 Results, Royalty AgreementTrafina Announces Drilling of Fourth Vertical Evaluation Well at McMullen, Gross Overriding Royalty Agreement and Q3 2011 Results CALGARY, ALBERTA--(Market wire - Nov. 21, 2011) -NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.Trafina Energy Ltd. ("Trafina" or the "Company") (TSX VENTURE:TFA.A)(TSX VENTURE:TFA.WT.A) is pleased to announce that it has drilled a fourth vertical test well on its McMullen lands in northeastern Alberta to further evaluate the Wabasca A heavy oil zone and establish optimum future slant well drilling locations.Trafina's fourth test well at 08-28-077-24 W4M was rig-released on November 20, 2011. The well encountered 10 metres of Wabasca A sand, has in excess of 32 percent porosity and, more importantly, bottom-hole pressure between 1,875 and 1,900 kilopascals (kpa). As previously discussed, optimum characteristics are more than five metres of Wabasca A sand, porosity greater than 25 percent and bottom-hole pressure greater than 1,200 kpa. The Company is very pleased with the results of this well. At this time, the only unknown characteristic is viscosity which will be determined in the next several days. The 8-28 well will be placed on production as soon as possible, given service rig availability. This fourth well completes Trafina's vertical test well drilling on Section 28. This past summer, the Company drilled and placed on production three wells at 16-28 and 05-28 and 11-28. Current production from the three wells is approximately 70 barrels of oil per day.Although the Wabasca zone is not a homogenous reservoir, all three test wells demonstrated the pressure and viscosity necessary for commercial production. Based on the drilling results to date, instead of pursuing the original plan to drill up to eight slant wells from one vertical location, Trafina is considering drilling several slant wells from all four vertical well locations. The Company expects to begin its slant well program in the first quarter of 2012, after adequately production testing the 8-28 well and subject to slant drilling rig availability.Additionally, Trafina has signed a binding letter of intent which grants a Gross Overriding Royalty (GORR) to an Alberta corporation that was instrumental in the Company acquiring the initial McMullen lands. The GORR is restricted to two of the 33 sections of land at McMullen and replaces a 20 percent right to participate in the two sections. The letter of agreement provides for payment of a 2.5 percent GORR, less deductions applicable to production of this type. The parties expect to enter into a definitive agreement prior to the end of November 2011. When this transaction is completed, Trafina will have 100 percent ownership in the McMullen lands and reserves.Q3 2011 HIGHLIGHTS During the three months ended September 30, 2011, Trafina took a major step forward developing its heavy oil play at McMullen. The Company drilled, completed, equipped and placed on production three vertical test wells. The coring results of all three wells were encouraging with zonal characteristics such as viscosity and pressure meeting or exceeding expectations. All three wells were placed on production in August 2011 and the Company began trucking oil for sale in September 2011.In order to facilitate further development at McMullen, the Company sold its entire interest in its Cardium oil play at Pembina, Alberta in September 2011. Net proceeds from the sale were approximately $1.7 million.SELECTED FINANCIAL INFORMATION For the three months ended September 30,2011 2010 % Change Total petroleum and natural gas revenue ($) 1,182,204 1,110,876 +6Royalties ($) 144,289 117,961 +22Operating, processing, and transportation expenses ($) 912,349 810,167 +13Funds flow used-in operations(1) ($) (230,435 ) (18,581 ) +1,140 per basic and diluted common share ($) --- --- ---Weighted average basic shares outstanding 55,690,562 18,627,262 +199Net loss ($) (2,802,144 ) (764,924 ) +266 per basic and diluted common share ($) (0.05 ) (0.04 ) ---Net capital expenditures (dispositions) - cash ($) 1,462,006 (1,509,568 ) ---Total assets ($) 17,846,426 17,140,762 +4Net debt and working capital deficiency(2) ($) 3,145,267 5,195,863 -39 (1) Funds flow used in operations is a Non-IFRS Measure. See "Non-IFRS Measures" in Trafina's Management's Discussion and Analysis (MD&A) for the third quarter of 2011.(2) Net debt and working capital deficiency consists of current assets minus current liabilities less effects of commodity contracts.SELECTED FINANCIAL INFORMATION For the nine months ended September 30,2011 2010 % Change Total petroleum and natural gas revenue ($) 4,022,167 3,881,182 +4Royalties ($) 401,796 452,934 -11Operating, processing, and transportation expenses ($) 2,785,622 2,844,502 -2Funds flow used-in operations(1) ($) (593,533 ) (434,629 ) +37 per basic and diluted common share ($) (0.01 ) (0.02 ) ---Weighted average basic shares outstanding 45,221,191 18,449,943 +145Net loss ($) (4,011,878 ) (2,721,561 ) +47 per basic and diluted common share ($) (0.09 ) (0.15 ) ---Net capital expenditures - cash ($) 4,433,989 801,663 +453Total assets ($) 17,846,426 17,140,762 +4Net debt and working capital deficiency(2) ($) 3,145,267 5,195,863 -39(1) Funds flow used in operations is a Non-IFRS Measure. See "Non-IFRS Measures" in Trafina's MD&A for the third quarter of 2011.(2) Net debt and working capital deficiency consists of current assets minus current liabilities less effects of commodity contracts.Trafina's third quarter 2011 financial statements and management's discussion and analysis have been filed on SEDAR at www.sedar.com and are also available on the Company's website at www.trafinaenergy.com.