California Well has Flow Rate of 12 Million Cubic Feet/Day

Silver Star Energy reports that the A.O.F. (absolute open flow rates at the sand face) rate has been calculated on the "Archer-Whitney #1" well by third party reservoir engineering. The well has an A.O.F. rate in excess of 12 million cubic feet per day. Also, the gas samples acquired during the recent flow test have returned a B.T.U. content of 940.

In addition, reservoir engineers report that the Company can expect excellent deliverability under producing conditions. As the casing pressure was increasing at the end of the testing period, the A.O.F. at the sand face of the well of 12 million cubic feet per day is a conservative rate calculation.

The B.T.U. value of 940 is within the range of Sacramento Valley gas production from reservoirs in the area, such as the Merritt Island, Staten Island, Snodgrass Slough and Elkhorn Slough gas pools.

Mr. Robert McIntosh, President of Silver Star states that, "The discovery of this new gas pool and upcoming development of the gas reservoir moves the Company from exploration to a near term producer. Silver Star management feels that the North Franklin gas discovery is a validation of our mandate of low risk, high quality projects and looks forward to the next several months toward well tie-in and ultimately commercial production."

Mr. John Howe, President of Archer Exploration, Inc. of Bakersfield whose Company authored the play and is a partner in the North Franklin Project states that, "The success of the Archer-Whitney #1 well culminates over two years of geological and engineering preparation work by Archer. We look forward to working with Silver Star on the upcoming development of this newly discovered gas reservoir and on other projects in California."

Silver Star will report on updates from the operator of the North Franklin Project in regards to gas purchasers and pipeline companies to determine the cost of tie-in of the well and to negotiate with pipeline companies for a prospective route for the tie-in of the well.

The North Franklin Project is located in the Sacramento Basin of California and is situated along the "Eastside Winters Stratigraphic Trend," which has produced in excess of 450 Bcf gas. The reservoir target at North Franklin is the Winters Formation. Silver Star has a 40% interest in the play.