Mr. Jonathan Schroeder reports

BROWNSTONE JOINT VENTURE PARTNER ACQUIRES NEW OFF-SHORE ISRAEL INTEREST

Brownstone Ventures Inc.'s joint venture partner in offshore Israel, Adira Energy Ltd., has signed a definitive co-operation agreement with Geo Global Resources Inc., and its wholly owned subsidiary, Geo Global Resources (India) Inc. (collectively "GGR") confirming the terms whereby GGR have agreed to assign an option it has to acquire up to a 5-per-cent participating interest in each of two deepwater licences offshore Israel known as petroleum licences 347 Myra and 348 Sara, (the "M&S options") to Adira.

Pursuant to an agreement between Brownstone and Adira, Brownstone has the right, subject to certain conditions, to earn a 15-per-cent participating interest in Adira Energy's interest in all offshore licenses, see press release in Stockwatch dated Sept. 14, 2009.

The Myra and Sara licenses are located in the Levantine basin which is located off the western coast of Israel in the Mediterranean Sea, in waters approximately 1,400 metres deep, approximately 35 kilometres from the recent 8.4-trillion-cubic-foot Tamar 1, Tamar 2, and adjacent to the 0.5-trillion-cubic-foot Dalit natural gas discoveries by the Noble Energy consortium. The Sara license covers an area of approximately 404 square kilometres (156 square miles) and the Myra licence covers an area of approximately 396 square kilometres (153 square miles).

Three dimensional seismic data for Myra and Sara has been shot, acquired, and processed. The 3-D seismic data in respect of the Myra and Sara licences have been submitted to the Ministry of National Infrastructures ("MNI"). The initial interpretation of the results of the 3-D seismic data was completed and a report submitted to the MNI on Aug. 1, 2010. It is expected that the during the remainder of 2010, the following will occur: an initial prospect on each licence is to be prepared during September, 2010; a report on the hydrocarbon system on the licences by October, 2010, and final preparation of the prospects, together with well plans should be completed by Dec. 31, 2010, all as per the agreed work program in the licence awards. A contract with a drilling contractor is expected by March 31, 2011, followed by an expected spud date of the third quarter of 2011.

The Myra and Sara licences before the exercise of the M&S options are held by a consortium of owners comprising Emmanuelle Energy Ltd. (24.161-per-cent participating interest), Emmanuelle Energy Gas and Oil Explorations LP (19.161-per-cent participating interest), Modiin Energy LP (19.282-per-cent participating interest) (Adira Energy's participating interest partner of the Gabriella licence, where Brownstone also has an interest), I.P.C. Oil and Gas (Israel) LP (13.609-per-cent participating interest), The Israel Land Development Co. Ltd. (5-per-cent participating interest), IDB Development Corporation Ltd. (5-per-cent participating interest), Blue Water Oil & Gas Exploration Ltd. (8.787-per-cent participating interest) and GeoGlobal Resources (India) Inc. (5-per-cent participating interest and operator).