Lexington Announces 10 Week Production Results

Lexington Resources reports production for its Kellster 1-5 well in Pittsburg County, Oklahoma for the ten-week period since commencement in mid February, 2004 reached approximately 27,700 MCF of gas. The net cash revenue for this period is in excess of US$71,000. The well continues through dewatering phases that over time could see production increase. If current production trends and gas pricing experienced remain stable, well drilling and completion capital costs should be fully realized and repaid in less than 12 months.

Private drilling funds have been utilized to provide the capital costs of the first three wells on the Wagnon lease. The Company's operating subsidiary will "back-in" to a residual 53.2% working interest in net proceeds on the Kellster 1-5 well from production once capital repayment is complete.

The Company also announces as at the date of this news release, that drilling on the Kyndal #2-2 is proceeding according to plan with vertical section drilling completed. Horizontal section drilling is now in process. A third well, the Bryce #3-2, is scheduled to follow the drilling of the Kyndal #2-2 immediately after well completion. A total of four to five horizontal CBM gas wells are planned on the Wagnon lease.

About the Drilling Play: The drilling site is located in the Hartshorne coal zone fairway of the prolific Arkoma Basin, in the middle of one of the largest CBM drilling programs undertaken in the State of Oklahoma. According to the Oklahoma Geological Survey, 865 (40%) of the 2,179 CBM completions in Oklahoma from 1988 to 2002 were located in the Arkoma Basin. Wells adjacent to this property have average initial production of between .5 and 1.0 MMCF per day, although a number of the wells are producing over 1.0 MMCF per day. An average of 153 horizontal CBM wells completed in Hartshorne coal have provided initial production that averages 0.418 MMCF per day.
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