Pepper Rock Preps for Production at Alberta Asset

Pepper Rock Resources announced that commercial production will commence shortly on the Company's Alberta, Canada property which lies in close proximity to the Montana border.

Pepper Rock previously announced that the Company will acquire certain petroleum related assets in Alberta, Canada that include a 49% interest in a natural gas processing and compression facility; natural gas pipeline, additional infrastructure and certain lands associated to the infrastructure. This project has been found to have the potential to contain over 8 BCF of natural gas. The Company also has the option to obtain the remaining 51% interest from the owner over a 2-year period.

Pepper Rock's intention is to tie-in the initial gas well in its Southern Alberta Gas Project, working in conjunction with its field operator. The well has two commercially viable and productive zones of natural gas currently shut in with gas behind pipe.

The completed gas well was drilled in 2004 and produced exceptional well tests performed by Well Test Specialists of Calgary, Alberta. Pepper Rock and the operator, following a short 2-mile connection and tie-in to the gas plant, anticipate plant start up and production immediately thereafter. All gas reservoirs have good permeability and porosity and could produce 3.2 million cubic feet (Mmcf) per day to the gas plant. At today's gas prices, when the project is fully developed, 3.2 Mmcf would equate to production valued at approximately $4.9 million on an annualized basis.