Mr. Bruce Scafe reports

PETROSTAR'S AMENDMENT OF FARROW LAND LEASE

Petrostar Petroleum Corp. has entered into a formal agreement to amend its previously announced Alberta surface lease agreement. The agreement has been amended so that it will not be effective until it has been approved by the TSX Venture Exchange.

The agreement pertains to the lease of lands by Farrow Distillation Corp. (FDC), an operating subsidiary of the company, for the future construction of a modular refinery development project in Farrow, Alta., Canada, where the lands are located.

The lease was entered into by FDC with Randle Ranches Ltd., a company owned and controlled by the family of Mackenzie Loree, a director, president and chief executive officer of Petrostar. The agreement may be determined to be a related-party agreement and may require shareholder approval before it is effective.

In consideration for securing the 25-year lease, with an option to extend for two consecutive 25-year terms, FDC has agreed, subject to exchange approval, to issue 250,000 shares in its authorized capital to Randle Ranches during the first year of the lease. The 250,000 shares, if issued, will be approximately 33 per cent of the total issued and outstanding shares of FDC, with the balance of shares owned by Petrostar. Further, if Petrostar is successful in building an oil refinery on the lands, then it will make annual payments consisting of a 1-per-cent royalty of gross revenues from all petroleum substances processed, saved and marketed from the lands.