EMERALD BAY PROVIDES OPERATIONAL UPDATE

CALGARY, June 10, 2011 /CNW/ - Emerald Bay Energy Inc. (TSX Venture: EBY) (the "Company" or "Emerald Bay") is pleased to provide an operational update on recent activities in Texas and Alberta.

Texas

Well optimization efforts continue at the Company's oil producing properties in Medina and Atascosa Counties.  Five wells were selected for a pilot re-stimulation program targeting a zone that has been producing for approximately 25+ years, but shows signs of near-wellbore damage created by fines migration over several years.  With production volume increases in excess of 150% the Company is very encouraged by the early results.  We will continue to monitor and test each well during the month of June to assess any volume decline before proceeding with the next phase to re-stimulate approximately 15 wells.  Based on these results we would then roll this out to the remaining 125+ wells in the Taylor-Ina field.

Drilling permits are approved on the JN Wilson "B" lease for the summer drilling program at Taylor-Ina.  It is expected that drilling operations on the seven wells will take place during the summer and fall of this year.

Mineral leasing operations continue for the Emerald Bay in Medina, Atascosa, Frio, and Guadalupe Counties, as the Company focuses on liquid rich opportunities in Texas.

Central Alberta

At Joffre, Alberta, work continues on two sections of land where three wells (.50 net) were drilled, cased, cemented and are in various stages of completion and tie-in.  02/03-21-39-25 W4 is now tied-in and producing natural gas from the Edmonton Sands.  16-21-39-25 W4 is currently awaiting tie-in this summer.  16-8-39-25 W4 is perforated, tied-in and flowing gas from the Edmonton Sands, and Horseshoe Canyon Coals.

At Chigwell, Alberta, two wells (.47 net) in two separate sections are now producing. 02/14-19-41-24 W4 was drilled as part of the 2010 drilling program, which was completed in the Belly River Sand.  The pipeline and facilities work is complete and flowing into a sales line.  Recent workover at 5-31-42-25 W4 is now complete in the Glauconitic and is now producing.

At Elnora, Alberta, well 13-9-34-23 W4 (.17 net) and well 12-21-46-22 W4 (.25net) at Bittern Lake Alberta were drilled, cased and cemented in 2010 to the base of the Horseshoe Canyon Coals.  Pipeline and facilities operations are underway and expected to be completed by the end of July.

At Gilby, Alberta, The Company has two wells (.43 net) on two separate sections in various stages of development.  The wells will be producing from the Ellerslie, Glauconitic, and Viking.  16-26-40-1 W5 was drilled in 2010 and is expected to complete pipeline and facilities operations by the end August.  8-33-40-1 W5 will have conventional lifting equipment for optimization.  Pipeline and facilities operations are complete at this location.

At Lacombe, Alberta, three wells (.67 net) were drilled, cased, and cemented in the Horseshoe Canyon Coals.  Pipeline construction and facilities were completed at 16-17-41-26 W4.  Perforation and stimulation operations are anticipated to begin by the end of June.  13-27-41-26 W4 has been perforated and is currently producing.  Completion and tie-in operations are scheduled for this summer at 8-21-41-26 W4.

About Emerald Bay

Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas producer with production properties in Western Canada and South Texas.  The common shares of Emerald Bay trade on the TSX Venture Exchange under the symbol "EBY".  Please visit www.emeraldbayenergy.com.

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.

Forward-Looking Statements

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect", "plan", "intend", "anticipates", "projects", "potential"  or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Forward-looking statements are statements that are not historical facts. 

Information inferred from the interpretation of drilling results may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a well is actually developed. BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 Bbl is based on energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The reader is cautioned that assumptions used in the preparation of such information, which are considered reasonable by Emerald Bay at the time of preparation, may prove to be incorrect. Actual results achieved will vary from the information provided and the variations may be material. There is no representation by Emerald Bay that actual results achieved will be the same in whole or part as those indicated in the forward-looking statements.  Forward-looking statements in this document include statements regarding the Company's exploration, drilling and development plans, the Company's expectations regarding the timing and success of such programs. In particular, forward-looking information in this news release includes, but is not limited to, statements with respect to: pipeline acquisitions and leasing; pipeline permits, pipeline construction, production estimates, drilling operations, completion operations, funding and development goals.  Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.  Factors that could cause or contribute to such differences include, but are not limited to, fluctuations in the prices of oil and gas, uncertainties inherent in estimating quantities of oil and gas reserves and projecting future rates of production and timing of development activities, competition, operating risks, acquisition risks, liquidity and capital requirements, the effects of governmental regulation, adverse changes in the market for the Company's oil and gas production, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the applicable securities regulators.

SOURCE Emerald Bay Energy Inc.

For further information:

Emerald Bay President, Shelby D. Beattie, by telephone at (403) 262-6000 or by email at info@ebyinc.com,

or

CHF Investor Relations:

Robin Cook, Senior Account Manager, (416) 868-1079 x228, robin@chfir.com.

If you would like to receive press releases via email please contact lauren@chfir.com. Please specify "Emerald Bay press releases" in the subject line.

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Emerald Bay Energy Inc.

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