Lexington Resources Closes on CBM Acreage in Oklahoma

Hughes County, Oklahoma
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Lexington Resources has closed the acquisition of approximately 4,850 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 more than doubles the Company's current drillable land holdings, and acreage delivered at closing is actually 5% greater than the 4,600 acres first announced in late June, 2004. Lexington Resources has completed final acquisition related due diligence and expends in excess of $606,300 for the farm out lease purchase. Acreage under acquisition extends over an area of mutual interest of approximately 24,320 acres and has been recently named the "H-9 Prospect" by Company representatives. Additional leasing activity is expected in conjunction with this acquisition to further expand acreage in order to maximize drillable inventory.

Company President Grant Atkins states, "The newly acquired H-9 Prospect significantly expands and solidifies our land holdings and drillable gas target inventory to approximately 9,500 acres -- enough inventory for our immediate drilling season and well into next year. Our challenge is to increase the pace of drilling to grow Company cash flow and capitalize on gas target lands acquired. With three successful well completions during the last two quarters, our operational infrastructure is formed and becoming very efficient. We are confident that the additional drill targets provided by the H-9 will result in the development of successful new gas wells. Lexington will continue to acquire high value, low risk, gas drilling targets such as these in order to generate immediate revenues and create strong long-term value."

The Company is currently completing its third well, the Bryce #3-2, located on its Wagnon lease in Pittsburg County, Oklahoma.

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