Mr. Andrew Rees reports

WELLSTAR ENERGY CORP. ANNOUNCES MCTAGGART SK ACQUISITION

Wellstar Energy Corp. has signed a purchase and sale agreement to acquire a partner's 39.2925-per-cent interest in the company's McTaggart, Saskatchewan, oil project, plus additional lands and 2-D seismic data. Before adjustments, the purchase price for the acquisition is $90,900. The company has deemed this to be an exempt transaction.

WellStar's president and chief executive officer Andrew H. Rees stated: "Management is extremely pleased to be able to sign the purchase agreement. The acquisition will provide the company with an approximate 90-per-cent interest in its McTaggart facility, increasing revenues while reducing operating costs. This will allow for more flexibility and quicker action on future development opportunities and facility expansion plans necessary to accommodate additional development wells in the area."

Acquisition overview:

The acquisition interests at the McTaggart project includes two oil wells and facilities which include a salt water disposal well, a 5,000-barrel oil storage battery and a freshwater source well.

In September, 2015, over $15,000 of monthly salt water disposal revenue was received net to the vendor's 39.2925-per-cent working interest. The company expects to receive similar amounts in the forthcoming months.

In September, 2015, the 5B9-6 oil well averaged 2.9 cubic metres per day of oil production (or 18.2 barrels of oil per day). The 39.2925-per-cent working interest being acquired from vendor represents approximately seven barrels of oil per day. The well is currently undergoing maintenance while management is evaluating and budgeting for the installation of an ESP (electronic submersible pump) which would significantly increase production volumes. The change in oil production would be dependent on the water cut.

The company's recent recompletion in the 1B9-6 well in September, 2015, is the second well in the acquisition package. The vendor did not participate in the recompletion and has therefore been in penalty. After penalty payout, the vendor would have earned revenue from its 39.2925-per-cent working interest in the well.

As part of this acquisition, the company will acquire a licensed copy and/or the vendor's interests in four 2-D seismic lines in the McTaggart area. These 2-D seismic data will aid in the development of future opportunities in the McTaggart area.

WellStar will acquire a 25-per-cent mineral interest from the vendor in two freehold leases. These lands directly offset the company's McTaggart property.

We seek Safe Harbor.