TAG Oil Announces New Light Oil Discovery, Taranaki Basin, New Zealand

Vancouver, BC, Canada, September 30, 2010 --(PR.com)-- TAG Oil Ltd. (TSX-V: TAO) reports a new
oil discovery in New Zealand's Taranaki Basin with the Sidewinder-1 exploration well, located within
TAG's 100%-controlled, 7,910 acre, Broadside exploration permit PEP 38748.

The Sidewinder-1 well was drilled to a total depth of 1,601m, and encountered 14 meters of net (22m
gross) oil-bearing sandstones in the Mt. Messenger Formation. Electric logs indicate excellent reservoir
qualities, with average porosities of 22.5% and oil saturations of 60%.

“We are extremely pleased to achieve oil pay in excess of what we had anticipated; these results also
increase the likelihood of additional discoveries and the prospectivity of the Broadside permit,”
commented Garth Johnson, CEO of TAG Oil. “TAG will now proceed to complete the Sidewinder-1 well
for production. We'll commence flow testing immediately after completing the fracture stimulation of the
Cheal B-3 well, located in our 100%-owned Cheal Mining Permit.”

The drill rig will now move to the Cheal Mining Permit to initiate drilling of the Cheal-BH-1 horizontal
well. This well, with a total measured depth of 2,325m, including a 600m horizontal section, will be
drilled into the proven producing area of the Cheal A block, and will target the widespread turbidite fan
deposits identified in the Mt. Messenger Formation. Cheal-BH-1 will be completed with a multi-stage
fracture treatment along the horizontal section.

TAG Oil Ltd.

TAG Oil Ltd. is a Canadian-listed company (TSX-V:TAO) with onshore operations in New Zealand.
With 100% control over all its core assets, including production infrastructure, TAG is anticipating
production growth through development of multiple oil and gas discoveries in the Taranaki Basin and
through high-impact exploration drilling on prospects identified over 3,500 sections of land.

In the East Coast Basin, TAG is pursuing the major unconventional resource potential that has been
demonstrated in the Waipawa Black Shale and Whangai Shale source-rock formations that are
widespread across the Company's acreage. The geological characteristics of these oil-rich, naturally
fractured, thermally mature formations compare favorably to fractured shale formations such as the
Bakken Shale in the Williston Basin and Liassic Shale in the Paris Basin.

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

Cautionary Note Regarding Anticipated Results and Forward-Looking Statements

Statements contained in this news release that are not historical facts are anticipated results and
forward-looking statements that involve various risks and uncertainty affecting the business of TAG Oil.
Actual results may vary materially from the information provided in this release. As a result, there is no

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representation by TAG Oil that actual results realized in the future would be the same in whole or in part
as those presented herein. Actual results may differ materially from the results predicted, and reported
results should not be considered as an indication of future performance.

TAG Oil is involved in the exploration for and production of hydrocarbons and all of its current property
holdings, with the exception of the Cheal Oil Field, are in the grass roots or primary exploration stage.
Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. There is no
certainty that the expenditures incurred on TAG Oil's exploration properties will result in discoveries of
commercial quantities of hydrocarbons. TAG Oil's future success in exploiting and increasing its current
reserve base will depend on TAG Oil's ability to develop its current properties and on its ability to
discover and acquire properties or prospects that are producing. But, there is no assurance that TAG Oil's
future exploration and development efforts will result in the discovery or development of additional
commercial accumulations of oil and natural gas.

Other factors that could cause actual results to differ from those contained in the anticipated results and
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 most recent reports in Canada under National
Instrument 51-102.

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/266219

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