TAG Reports Strong Flow Test at Sidewinder-3 Discovery, and On-Track to

Produce First Commercial Oil and Gas from Sidewinder Discoveries

Sidewinder-3 was drilled to a total depth of 2,160 meters (7,085 feet), encountering 15.4 meters (50
feet) of net gas-bearing sandstones. With the four wells drilled to date, the interpreted total
hydrocarbon column at Sidewinder exceeds 60 meters (196 feet) in thickness, with no water column
evident in any of the Sidewinder wells.

Vancouver, B.C., Canada, June 06, 2011 --(PR.com)-- TAG Oil Ltd. (TSX-V: TAO) and (OTCQX:
TAOIF) is pleased to report that the initial flow test of the Sidewinder-3 discovery well is now complete.
The Sidewinder-3 well is located in TAG Oil's 100% controlled Petroleum Exploration Permit 38748 in
the Taranaki Basin, New Zealand, where TAG has now drilled four successful discovery wells to date.

Located 1.1 km to the south of the Sidewinder-1 discovery, the Sidewinder-3 well was drilled to a total
depth of 2,160 meters (7,085 feet), encountering 15.4 meters (50 feet) of net gas-bearing sandstones. With
the four wells drilled to date, the interpreted total hydrocarbon column at Sidewinder exceeds 60 meters
(196 feet) in thickness, with no water column evident in any of the Sidewinder wells.

A 4-Point Isochronal test on the Sidewinder-3 discovery well achieved a stabilized flow rate of 7.2
million cubic feet per day (1200 BOE per day) with less than a 50% drawdown. These results are
consistent with the Sidewinder-1 well flow test, which achieved stabilized flow rates of 8.5 million cubic
feet of gas plus 44 barrels of oil per day (1461 BOE per day) from 14m (46 feet) of net pay encountered.

Further reservoir engineering analysis of the 4-point Isochronal test for the Sidewinder-1 well, calculated
the absolute open flow rate to be 30 million cubic feet of gas per day or 5000 barrels of oil equivalent per
day. A similar analysis will be completed on Sidewinder-3 once the down hole gauges are retrieved in
approximately two weeks.

“The strong flow rates we are achieving in the Sidewinder wells support our decisions to expand the
through-put capabilities as well as fast-tracking the construction of the new production facilities. As a
result, we are on track to produce the first oil and gas from the Sidewinder discoveries by August 2011,”
Garth Johnson, TAG Oil CEO commented. “Our Sidewinder acreage is proving to be a very exciting and
prolific discovery area that we believe can provide TAG with substantial near-term production increases,
as well as significant reserve growth. We also look forward to flow testing the recent Sidewinder-2 and
Sidewinder-4 discoveries, and continuing our pursuit of the many high-impact exploration opportunities
TAG has identified on 3D seismic permit-wide.”

TAG also reports that the service rig has now been moved onto the Sidewinder-4 discovery well for flow
testing. The Sidewinder-4 penetration is approximately 1 km to the east of the Sidewinder-1 well and
encountered 19 meters (62 feet) of net oil-and-gas bearing sandstones. Once the Sidewinder-4 flow test is
complete, the service-rig will move to the Sidewinder-2 well, which encountered 47 meters (154 feet) of
net oil-and-gas bearing sandstones to the west of Sidewinder-1 well.

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For more information on TAG Oil's Sidewinder Discovery please visit:
http://www.tagoil.com/20110506-Fifth%20Exploration%20Discovery-Sidewinder-4.asp

TAG Oil Ltd.

TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based production and exploration company with
operations focused exclusively in New Zealand. With 100% control over all its core assets, including oil
and gas production infrastructure, TAG is anticipating substantial oil and gas production and reserve
growth through development of several light oil and gas discoveries. TAG is also actively drilling
high-impact exploration prospects identified across 2,712 sections of land in the onshore Taranaki and
East Coast Basins of New Zealand's North Island.

In the East Coast Basin, TAG Oil is pursuing the significant unconventional resource potential estimated
in the fractured shale source-rock formations that are widespread over the Company's acreage. These
oil-rich, naturally fractured and thermally mature source-rock formations have many similarities to North
America's Bakken Shale source-rock formation in the successful Williston Basin.

Contact:
Dan Brown or Garth Johnson
TAG Oil Ltd. 1-604-682-6496
Website: http://www.tagoil.com/

"BOE"s may be misleading, particularly if used in isolation. A BOE conversion ratio of 6Mcf: 1 Bbl is
based on an energy equivalency conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.

Cautionary Note Regarding Forward-Looking Statements

Statements contained in this news release that are not historical facts are forward-looking statements that
involve various risks and uncertainty affecting the business of TAG Oil. All estimates and statements that
describe the Company's objectives, goals, or future plans, including the drilling plans and flow testing
related to the exploration, testing and development of TAG Oil's Sidewinder-1, Sidewinder-2,
Sidewinder-3 and Sidewinder-4 light oil and gas discoveries in the Taranaki Basin of New Zealand are
forward-looking statements under applicable securities laws and necessarily involve risks and
uncertainties including, without limitation, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, volatility of commodity prices, imprecision of
reserve estimates, environmental risks, competition from other producers, and changes in the regulatory
and taxation environment. These forward-looking statements are based on certain factors and
assumptions. Consequently, the Company's actual results may vary materially from the information
provided in this release and there is no representation by TAG Oil that actual results realized in the future
would be the same in whole or in part as those presented herein.

Additional risk factors and uncertainties that could cause actual results to differ from those contained in
the forward-looking statements are set forth in, but are not limited to, filings that the Company and its
independent evaluator have made, including the Company's Annual Information Form and its most recent

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reports in Canada under National Instrument 51-101.

Neither 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.

###

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Contact Information:
TAG Oil Ltd.
Dan Brown
1-604-682-6496
media@tagoil.com
www.tagoil.com

Online Version of Press Release:

You can read the online version of this press release at: http://www.pr.com/press-release/329394

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