Lexington Resources Doubles Arkoma Basin Acreage

Lexington Resources has acquired approximately 4,600 acres of Coal Bed Methane ("CBM") target gas leases located in 38 sections of Hughes and McIntosh Counties in the State of Oklahoma. This acquisition will more than double the current drillable land holdings of the Company. Lexington Resources has paid a total of $125,000 towards the farm out lease purchase totaling $600,000. Completion of final due diligence is expected within 30 days. Acreage under acquisition extends over an area of mutual interest of approximately 24,320 acres. Additional leasing activity is expected in conjunction with this acquisition to further expand acreage in order to maximize both drillable inventory and drilling opportunity.

These new leases encompass rights to all possible producing zones to the base of the Hartshorne Coal Formation at estimated depths of approximately 3,000 feet and include a 79.25% Net Revenue Interest and a 100% Working Interest. The Company has begun planning further horizontal gas well development on the acquired lands, along with further land leasing activity.

Lexington's President, Grant Atkins commented, "The new land position brings our total drillable acreage to almost 9,000 acres effectively doubling drillable leases -- enough inventory for our immediate drilling season and well into next year. The Company continues to acquire high value, low risk, gas drilling targets such as these in order to generate immediate revenues and create strong long-term value."
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