Diversified Resources Closes on Purchase of San Juan Basin Operating Company

Diversified Resources, Inc. (OTCQB: DDRI) announced today that it has closed on its purchase of 98% of the outstanding shares of BIYA Operating, Inc. a private energy company.

The assets of BIYA Operating Inc. consist of 48 producing wells, miscellaneous equipment and leases covering approximately 10,400 acres in the Horseshoe Gallup Field in Northwest New Mexico. Pursuant to the terms of the purchase and sale agreement, Diversified paid approximately $4.9 million in consideration including cash, stock, notes and assumption of liabilities. Diversified has a 100% working interest in the 48 producing wells and an average 100% working interest in the oil and gas leases.

Paul Laird, CEO of Diversified Resources commented: “We are extremely proud of all the work that has gone into making this transaction possible. With the acquisition of BIYA, we have added a very attractive property and group of employees we think can be leveraged alongside our capital and that of industry partners into a major asset for the Company. The wells we acquired can be enhanced with work-overs and we estimate the property contains dozens of vertical and horizontal drilling opportunities. This acquisition is a solid building block for the Company. We are seeing quite a bit of industry interest in this area of the San Juan Basin and considering the economics, we are looking at a number of similar projects.”

Jubal Terry, Exploration Manager/Geologist expanded on the potential: “I see tremendous upside potential in this 10,000+ acre unit in the Horseshoe/Gallup field. The source rock for this play is the relatively shallow Mancos/Niobrara Shale. We have current production in sands associated with the Mancos/Niobrara Shale, specifically the Gallup Sands and the Tocito Sands with deeper horizons that include the Dakota Sandstone, the Paradox formation and the Mancos/Niobrara Shale itself. We are aware of some very impressive horizontal completions in the Mancos in nearby acreage and we are very excited to start development - both horizontally and vertically.”

Mr. Laird continued: “Our corporate goals of increased production, reserve additions and increased cash flows are commensurate with the characteristics of this acquisition; and we look forward to working with the Ute Mountain Ute Tribe- the mineral owners. I would like to take this opportunity to thank all those who worked so hard getting a reasonably difficult deal to the finish line, including our investors, counsel, staff and the BIYA principals. This project area and our existing Niobrara acreage position in the DJ and Raton Basins lay the foundation for an active capital plan for 2015. We are positioning the Company to grow in these plays given the $80 priced oil environment. We seek to build strong acreage positions at a low cost and put our capital into the drilling and development of those assets we deem attractive.”

DIVERSIFIED RESOURCES, INC.

Diversified Resources is a Colorado-based energy company focused on the development of its D-J, Raton and San Juan Basins assets.

SAFE HARBOR

This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release regarding our financial position, business strategy, and plans and objectives of management for future operations and industry conditions, are forward-looking statements. These forward-looking statements are based on current expectations and assumptions concerning events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.