Mr. Andrew Rees reports

WELLSTAR ENERGY ANNOUNCES SIGNING OF DEFINITIVE AGREEMENT TO ACQUIRE OIL & GAS ASSETS

Wellstar Energy Corp., further to its news release of Sept. 10, 2014, has entered into a share purchase and sale agreement dated as of Feb. 5, 2015, in connection with the acquisition of certain oil and gas assets located in Alberta and Saskatchewan from an arm's-length vendor.

Pursuant to the terms of the definitive agreement, the company will acquire the assets in consideration for aggregate cash payments of $1.6-million (subject to adjustment in certain circumstances), including $200,000 upon closing the acquisition, and the issuance by the company of four million warrants. Each acquisition warrant will entitle the vendor to purchase one common share at an exercise price of five cents for a period of 48 months following the closing of the acquisition. The balance of the cash payment, being $1.4-million, is payable by monthly instalments of $10,000 plus applicable interest. In addition, the company is obligated to pay 20 per cent of the gross proceeds of any future securities offering to the vendors until the deferred payment has been fully satisfied.

The assets consist of operated working interests producing approximately 62 net barrels of oil equivalent per day from approximately 6,000 net acres in Saskatchewan and Alberta. This includes 3,500 net acres in Saskatchewan prospective for the Bakken formation, with current production from three wells in the Red River and Winnipeg sand formations. The assets also include facilities consisting of a salt water disposal well, five 1,000-barrel oil storage tanks and a fresh water source well.

The completion of the acquisition remains subject to the parties obtaining all necessary regulatory approvals to the acquisition, including the final approval of the TSX Venture Exchange.