Mr. Andrew Rees reports

WELLSTAR ENERGY CORP. ENTERS INTO $12,000,000 LETTER OF INTENT TO ACQUIRE OPERATED OIL & GAS ASSETS IN ALBERTA, CANADA

Wellstar Energy Corp. has entered into a letter of intent dated as of July 27, 2016, in connection with the acquisition of certain oil and gas assets located in east-central Alberta from an arm's-length vendor. Pursuant to the terms of the LOI, the company will acquire the assets in consideration for a net purchase price of $12-million including aggregate cash payments of $8-million and the issuance of $4-million of common shares of the company at a deemed price of 50 cents per share.

The assets encompass 212,997 gross (147,576 net) acres of operated and non-operated working interests in east-central Alberta producing approximately 700 barrels of oil equivalent per day.

WellStar president and chief executive officer, Andrew H. Rees, stated, "This acquisition represents a clear path forward for the company to excel through the current challenging resource price environment."

He commented further: "The assets, based on vendor-supplied third party engineering, while not reflecting recent production gains, contain approximately 2.68 million boe in total proved reserves with a net present value discounted at 10 per cent of approximately $22.5-million. Additionally, WellStar's technical team believes there is significant upside to increase production from current levels."

The company will further define the assets in coming news releases.

The completion of the acquisition is conditional upon, among other things, completion of due diligence, entering into a mutually acceptable definitive agreement by mid-October, 2016, the company securing suitable financing within the time frame agreed to by the parties and obtaining all necessary regulatory approvals to the acquisition, including the TSX Venture Exchange.

We seek Safe Harbor.