Hi Pinkalish,
I'd say a couple of things. First, don't exercise if your bg is over 12, for the very reasons you mention. Your sugars will rise to the sorts of harmful levels you mention.
Second, you may find your bg rises regardless of your bg level if your exercise session isn't long enough. Exercise always releases stress hormones which push your bg higher and it might help to exercise a wee bit longer in order to bring them back down again.
Third, some people appear happy to start exercise with bgs in the 7-10 region, but I think that's a bit daft really. They're relying on there being sufficient insulin in their bloodstream to bring their bg down from a diabetic to a nondiabetic level. That usually means too much insulin to begin with.
In my experience, it's perfectly possible to exercise at bgs of 4-5 and for them not to change too much as a result of your workout. The key to this however is relatively low insulin levels and a diet that doesn't cause big bg fluctuations in the first place.
Hope that helps?
fergus