Mustang Enjoys Successful 2003 Drilling Program

Mustang Resources reports that it drilled 29 gross wells (18.5 net), all in the second half of 2003. To date 11 gross (5.0 net) wells are currently on production, 6 gross (5.2 net) wells are being tied in, 4 gross (2.2 net) wells are cased and are presently being evaluated and the remaining 8 gross (6.1 net) wells were dry and abandoned. As a result Mustang is currently producing in excess of 1,000 boe/d. Mustang estimates that it has approximately 700 boe/d of behind pipe production that should be all on stream by the end of April. The behind pipe production is situated in the following areas:

Medicine River, Alberta - The projected on-stream date for the Mustang operated Leduc Pinnacle Reef well at 8-35-38-4 W5M is early April/04. This new pool wildcat oil well flowed light oil (44 degree API) at various rates up to 1,000 bbls per day and 750 mcf/d of natural gas (6% H2S) over a six day production test period. Initial production from the well will be at a restricted rate of between 600 to 750 boe/d. The Company will be applying for Good Production Practise (GPP) and Mustang expects the production rates to increase once GPP is obtained. Mustang has a 50% before payout and 35% after payout working interest in the well.

Mustang's second Leduc discovery located at 7-2-38-4 W5M should also be on stream by early April/04. This gas well had an absolute open flow potential of 19 mmcf/d. Mustang is expected to produce the well at a restricted rate of 1.0 mmcf/d or 115 boe/d net to Mustang (70% W.I.).

Central, Alberta - Mustang has drilled two new discovery wells in its Central Alberta core area. The first discovery well is currently producing at a rate of 150 boe/d net to Mustang. The additional two follow up wells will be coming on stream next week at approximately 100 boe/d net to Mustang. The Company expects to have additional drilling activity in this area during 2004 based on this early drilling success. Mustang has also cased a second discovery well in this core area and is currently evaluating two zones. This well is also expected to be on production by early April/04 at approximately 150 boe/d net to Mustang. The Company will be focusing on this area in 2004 as it has access to 5.5 sections of 100% W.I. land.

Clive, Alberta - Mustang has drilled the first four Horseshoe Canyon shallow gas wells to test a coal bed methane project in the area. The 100% W.I. wells are currently being completed and are expected to be on production by mid February at approximately 80 boe/d. Another 20 follow up locations could be drilled in 2004 on existing Crown lands depending on the production results of the first four wells. Mustang's owns 100% of the pipeline and processing infrastructure that the wells will be tied into.

Mr. Richard Todd, President of Mustang stated "I am very pleased with the drilling results for the Company's first full year of operations. These positive results reflect favorably upon Mustang's strong technical team. With the excellent results for 2003, we are looking forward to continuing to increase per share value for our shareholders in 2004."