Savoy Energy Corporation announced that the principal financial officer of the company has made a determination that the consolidated financial statements of the December 31, 2010 as well as the consolidated financial statements for the periods ending March 31, 2011, June 30, 2011 and September 30, 2011, should no longer be relied upon because of errors in such reports. This conclusion was reached in August 2012, in connection with the preparation of filling for the fiscal year ended December 31, 2011. The consolidated financial statements for the year ended December 31, 2010 included $35,000 as compensation expense, that was erroneously recorded as a reduction in paid in capital; related to payments made pursuant to an agreement with a shareholder and working interest participant in certain oil and gas properties to allow the shareholder to put their interest in the properties to the company.

Additionally, the company is correcting an error in accounting for certain convertible promissory notes. The convertible promissory notes contained conversion features that would require the company to issue common shares upon exercise of the conversion feature that would exceed the company's authorized common shares. As a result the restated consolidated financial statements will include a derivative liability and a discount to convertible promissory notes, as well as an increase to interest expense for the related amortization of the note discount.

The effect of the restatement increased total liabilities by $14,498 increased paid in capital by $35,000 and increased the net loss for the year ended December 31, 2010 by $49,518.