Lexington Resources Secures Ten Well Drilling Agreement

Lexington Resources has reached an agreement with Oak Hills Drilling to drill a ten well program. Oakhills Drilling is an Oklahoma based private drilling contractor that will provide the Company with drill rig and drilling expertise required for Lexington to execute its planned drilling initiatives according to the Company's timetable. The Company has experienced delays in obtaining drilling rigs in the past due to the high drilling demand in the Arkoma Basin where the Company has been concentrating its coal bed methane and other gas targeted production and leasing programs. This agreement eliminates wait times for proceeding with planned drilling initiatives due to limited rig availability and ensures the continuous availability of a dedicated drilling rig and crew.

The Company has negotiated standard drilling terms in accordance with the International Association of Drilling Contractors and market competitive labor and service charge out rates for a contracted ten well program. This phase will first target development of its Wagnon, Coal Creek, and South Lamar leases. Oakhills Drilling's "Wilson" model drill rig is undergoing final outfitting and is now scheduled to replace the drill rig of past contract for the Company's fourth horizontal gas well on its Wagnon Lease located in Pittsburg County, Oklahoma. The rig is now scheduled for Wagnon drilling within two weeks.

The Caleigh 4-2 well which is scheduled to be drilled, follows the successful drilling of the Kellster #1-5, Kyndal #2-2 and Bryce #3-2 horizontal gas wells, completed in February, June, and July, 2004 respectively. Drilling and completion time is estimated at two to three weeks based on depths and drilling protocols similar to those previously experienced in the drilling of the Hartshorne Coal production target of the Kyndal, Kellster, and Bryce wells.

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