Summary of NEW WESTERN ENERGY CORP

Item 5.02 Appointment of Director; Compensatory Arrangements of Certain Officers

On October 1, 2012 NEW's Board of Directors was expanded from 3 to 4 members and the Board appointed Terry L. Carroll Sr. to the newly created vacancy. Mr. Carroll has over 30 years of experience in the oil and gas industry and currently serves as the Operating Manager of Carroll Energy LLC, a company he founded in 2001. Carroll Energy is a privately owned exploration and development company primarily involved with the exploration and development of Coalbed Methane Gas in Kansas and Oklahoma. Mr. Carroll's Director compensation includes the following:

1) He will be issued 200,000 shares of restricted NWE common stock issued over four quarters with the first 50,000 shares issued on October 1, 2012.

2) He will be granted options to purchase up to 200,000 shares of NWE common stock pursuant to NWE's 2012 Stock Option Plan. The options will have a term of 3 years with an exercise price of $0.60 per share, which is the fair market value of a share of NWE common stock as of the grant date.

3) He will be paid the standard outside Director Fee of $500 per month for his services as a Board member. He will be paid an additional $500 per month for his services, in addition to his services as a Board member, in assisting with the Corporation's business promotion including assisting with sales calls and general business advice.

4) He will also be reimbursed for all normal business expenses, including travel, he incurs in support of NWE's business activities.

As previously announced in a Form 8-K filed April 27, 2012, on April 25, 2012 NWE entered into an exploration and development agreement with Carroll Energy LLC to prepare engineering, reserves and geological reports on NWE's 1,700-acre B&W Ranch Oil and Gas lease located in Oklahoma.

On August 30, 2012, the NWE Board approved the New Western Energy Corporation 2012 Stock Option Plan pursuant to which officers, key employees and non-employee Directors can be awarded stock options to purchase shares of NWE's common stock. Up to 5,000,000 shares of common stock can be issued pursuant to the Stock Option Plan. The Stock Option Plan is subject to NWE shareholder approval.