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File: WSE-NR East Central AB LOI July 28, 2016.docx

Suite 700, 903 - 8th Ave S.W., Calgary, Alberta, Canada 
T2P 0P7
 TSX-V: WSE 
T403.261.7949
F403.261.9698
www.wellstarenergy.com
 
 /

NEWS RELEASE 16-06
WellStar Energy Corp.  Enters into $12,000,000 Letter of Intent  to Acquire Operated Oil & Gas Assets in Alberta, Cana
--->da


Calgary, AB, July 28, 2016 - WELLSTAR ENERGY CORP. (TSX-V: WSE) (the "Company") advises that the Company has entered i
--->nto a Letter of Intent dated as of July 27, 2016 (the "LOI") in connection with the acquisition of certain oil & gas a
--->ssets located in East Central Alberta (the "Assets") from an arm's length vendor (the "Acquisition"). Pursuant to the 
--->terms of the LOI, the Company will acquire the Assets in consideration for a net purchase price of $12,000,000 includi
--->ng aggregate cash payments of $8,000,000 and the issuance of $4,000,000 of common shares of the Company at a deemed pr
--->ice of $0.50 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 ("BOE") per day.

WellStar president and CEO 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 that "The Assets, based on ven
--->dor 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 percent of approximately $22.5 million. Additi
--->onally, WellStar's technical team believes there is significant upside to increase production from current levels."

The Company will further define the Assets in upcoming 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 ti
--->meframe agreed to by the parties and obtaining all necessary regulatory approvals to the Acquisition, including the TS
--->X Venture Exchange (the "TSX-V").

For further information please contact Andrew H. Rees at (403) 919-7900.

ON BEHALF OF THE BOARD

(signed) "Andrew H. Rees" Andrew H. Rees President

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the 
--->TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Except for historical information contained herein, this news release contains forward-looking statements that involve
---> risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities l
--->aws, the Company will not update these forward-looking statements to reflect events or circumstances after the date he
--->reof. More detailed information about potential factors that could affect financial results is included in the documen
--->ts filed from time to time with the Canadian securities regulatory authorities by the Company. 

THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESS RELEASE PRESENT THE EXPECTATIONS OF THE COMPANY AS OF THE DATE 
--->HEREOF AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE.  READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON F
--->ORWARD-LOOKING STATEMENTS.  

BOE presentation:
Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversi
--->ons in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barre
--->l of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not
---> represent a value equivalency at the well head.