Mr. Mark Kilback of Kingsland reports

KINGSLAND ENERGY CORP. BUYS CONTROLLING OWNERSHIP OF EHR ENHANCED HYDROCARBON RECOVERY INC. FROM HTC PURENERGY INC.

Further to the previous announcement, Kingsland Energy Corp. still intends, subject to regulatory and majority disinterested shareholder approval, to purchase control of EHR Enhanced Hydrocarbon Recovery Inc. through the purchase of HTC Purenergy's entire interest in EHR. Through the acquisition, KLE will gain 70 per cent of EHR's outstanding shares, adding to the 29 per cent it already owns.

EHR owns and is developing new oil and gas production optimization and enhanced secondary/tertiary recovery technologies. Its technologies are a strong differentiated competitive advantage in the oil and gas industry. EHR has an experienced management team with a background in technology development, deployment and energy technology finance that will provide additional business synergies to Kingsland by joining the two companies together.

The acquisition by Kingsland of the 12 million common shares of EHR, currently owned by HTC Purenergy, is subject to Kingsland issuing six million common shares and the issuance of a secured, convertible debenture to HTC Purenergy at the date of closing. The value of the debenture, which is payable or convertible to Kingsland common shares no later than 24 months from the date of closing, is equal to the technology development investment previously invested in EHR by HTC Purenergy, at approximately $1.4-million. The board of directors of Kingsland has approved the transaction.

"We believe this transaction will provide compelling long-term value for our shareholders," said Mark Kilback, chairman of the board and chief executive officer of Kingsland.