Brownstone Energy Partner Moves Drill to Kokopelli Leasehold

Brownstone Energy Inc. (TSX VENTURE:BWN)(OTCQX:BWSOF) ("Brownstone" or the
"Company") today announces that it has been advised by the operator, Dejour
Energy Inc. (NYSE AMEX:DEJ)(TSX:DEJ), that a drill rig has been contracted to
drill the first well at Brownstone's 28% owned Kokopelli project in the Piceance
Basin, Colorado and that the rig is now moving onto the location. 


Brownstone has been advised that this well is expected to spud during the coming
week and will be directionally drilled to the base of the Williams Fork, logged,
with casing set during the third quarter of 2012. Successful completion of this
well will secure for Brownstone and its partner the substantial portion of the
proven and probable undeveloped reserves, approx. 60 BCFe including approx.
3.6MM barrels of liquids net to Brownstone, attributed to the Williams Fork
section of this Kokopelli leasehold by independent engineers. Production is
expected to be tied into existing gathering systems by year end. 


This 2,200 acre project is ideally situated for exploitation of both the
Williams Fork and Mancos hydrocarbon laden shale bodies immediately adjacent to
Williams Energy (NYSE:WPX) and Bill Barrett Corporation (NYSE:BBG) who are both
developing and producing their respective leaseholds to the east, west and north
of the Company's acreage. Brownstone, through the operator, Dejour, has worked
closely with important constituents including local citizenry and government,
the Bureau of Land Management and the Colorado Division of Wildlife to develop a
mutually acceptable development plan for this environmentally sensitive area.
Construction of the first drilling pad commenced in the fourth quarter of 2011
with production expected to begin in the second half of 2012. According to
National Instrument 51-101 standard in Canada, the reserves evaluation report
for Brownstone's leases at Kokopelli Field effective June 30, 2011, performed by
Gustavson and Associates of Boulder, Colorado, projects the before tax
discounted net present value 10% (NPV10) of proved undeveloped (PUD) reserves
valued at $34.6 million and proven plus probable undeveloped (2P) reserves
valued at $74.5 million in the Williams Fork section net to Brownstone..


The initial drilling program has been reduced to reflect current commodity
prices, but will allow the Company to secure these valuable assets for the
long-term benefit of our stakeholders.


About Brownstone  

Brownstone Energy Inc. is a Canadian-based, energy focused company with direct
interests in oil and gas exploration projects, including varying interests in
three off-shore Israel concessions and in four Colombian blocks in the Llanos
basin, as well as other oil and gas interests worldwide. By owning and managing
a diversified portfolio of energy-based projects, Brownstone provides
shareholders with a unique energy alternative. For additional information,
please see Brownstone's website:www.brownstoneenergy.com.


For further information, please contact:

Cautionary Statements 

This news release contains forward-looking information and forward-looking
statements within the meaning of applicable securities laws (together,
"forward-looking information"). The use of any of the words "expect",
"anticipate", "continue", "estimate", "believe", "plans", "intends",
"confident", "may", "objective", "ongoing", "will", "should", "project",
"should" and similar expressions are intended to identify forward-looking
information. 


The forward-looking information is based on certain key expectations and
assumptions made by the Company, including expectations and assumptions
concerning the operational results at Kokopelli. Although the Company believes
that the expectations and assumptions on which the forward-looking information
are based are reasonable, undue reliance should not be placed on the
forward-looking information because the Company can give no assurance that they
will prove to be correct. 


Since forward-looking information addresses future events and conditions, by its
very nature it involves inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number of factors
and risks. These include, but are not limited to, the inherent risks involved in
the exploration and development of oil and gas properties, the uncertainties
involved in interpreting drilling results and other geological data,
uncertainties relating to fluctuating oil and gas prices, the possibility of
cost overruns or unanticipated costs and expenses and other factors including
unforeseen delays. Anticipated exploration and development plans relating to the
Company's properties are subject to change. 


The foregoing list of assumptions, risks and uncertainties is not exhaustive.
The forward-looking information contained in this press release is made as of
the date hereof and Brownstone undertakes no obligation to update publicly or
revise any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws