Petrostar Signs Letter of Intent with Elmdale Resources Ltd.

16.08.2012  |  The Newswire

(via Thenewswire.ca)

August 16, 2012

TSX-V Symbol: PEP

Petrostar Petroleum Corporation ("Petrostar" or "the Company") is pleased to announce that on August 7, 2012 the Company signed a Letter of Intent ("LOI") with Elmdale Resources Ltd., a private oil and gas company based in High River, Alberta.

The LOI is to effect a transaction that will result in the transfer of ownership of 2 wells in the Herronton Properties located in southern Alberta, specifically 06-32-18-25W4 & 10-31-18-25W4, from Elmdale to Petrostar. In consideration of 100% ownership of these 2 wells, Petrostar will issue 1,250,000 common shares of the Company's stock to the shareholders of Elmdale.

Both companies are now working towards the execution of a mutually acceptable definitive agreement. The transaction will require approval from the board of directors of both Petrostar and Elmdale, and the TSX Venture Exchange.

About Petrostar Petroleum Corp.

Petrostar is a Tier 2 Canadian-based oil and gas exploration company trading on the TSX Venture Exchange. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders' risk exposure to various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator.

For further information, please contact Bruce Scafe, IR and Communications Officer, at 1-877-737-8864 or bscafe@petrostarpetroleum.com.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada (IIROC) accepts responsibility for the adequacy or accuracy of this release.

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