Mr. Jonathan Schroeder of Brownstone reports

BROWNSTONE TESTS 2,225 BOPD FROM LOWER MIRADOR RESERVOIR OF THE CANAGUAY #1 WELL, LLANOS BASIN, COLOMBIA

Brownstone Ventures Inc. has made an oil discovery in the Lower Mirador formation at the well Canaguay-1 on the Canaguaro block in Colombia. Brownstone has a 25-per-cent working interest in the Canaguaro block. Partners in the project are Quetzal Energy Ltd. (25-per-cent working interest and operator) and Condor Exploration Inc. (50-per-cent working interest).

Canaguay-1 is the first well to be drilled on the Canaguaro exploration drilling program. The well began drilling on June 3, 2010, and finished drilling at a final total depth (TD) of 15,850 feet on Aug. 4, 2010.

Quetzal began completion and testing operations on Sept. 9, 2010. To date, the Une/Lower sandstone, Gacheta, Barco and Lower Mirador intervals have been perforated and tested. The Upper Mirador -- which had the majority of the indicated oil pay on the well logs -- is expected to be perforated and tested in the next several weeks.

Canaguay-1: cased hole drill stem test summary

The operator has provided Brownstone with the following test summary:

• DST 1, Une/Lower sandstone, perforated 15,484 to 15,469 feet, 15 feet: gas was observed at surface at a rate that was too small to measure and the pressure data indicated relatively poor permeability. Fifty barrels of 37-degree API oil was recovered during the reverse circulation after the test.

• DST 2, Une/Gacheta, perforated 15,359 to 15,353 feet, six feet: pressure data indicated poor permeability in the interval. A small sample of 27.4-degree API oil was recovered during the reverse circulation after the test. Hydrocarbon volumes were too small to measure.

• DST 3, Gacheta, perforated 15,248 to 15,231 feet, 17 feet: pressure data indicated very poor permeability in the interval. No hydrocarbons were recovered during the test.

• DST 4, Barco, perforated 14,736 to 14,724 feet, 12 feet: pressure data and production volumes indicate fair zonal permeability however no hydrocarbons were produced from this interval.

• DST 5, Lower Mirador, perforated 14,297 to 14,292 feet, five feet: coiled tubing was run to 6,000 feet and 500 standard cubic feet per minute of nitrogen was pumped to remove the fluid cushion, and achieved a drawdown of approximately 17 per cent. Fluid production rates averaged 2,225 barrels per day of 20.7-degree API oil with a trace of water during the test.

• DST 6, Upper Mirador, perforation interval to be determined based on further study of Lower Mirador results: Open hole well logs indicate that this reservoir is the most prospective in the well, which will be confirmed by completion and testing over the next several weeks.

Brownstone is earning into its 25-per-cent working interest in the Canaguaro block.