Fairmount Announces Filing of Annual Financial Statements and Ni 51-101 Reserves Data for the Year Ended March 31, 2009

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES OF AMERICA.


Fairmount Energy Inc. ("Fairmount" or the "Company") (TSX VENTURE:FMT) is
pleased to present a summary of its operating and financial results for the year
ended March 31, 2009. For a complete copy of Fairmount's annual financial
statements and management's discussion and analysis ("MD&A") and Fairmount's
Statement of Reserves Data in accordance with NI 51-101 with the related reports
please visit www.sedar.com. Certain information contained in this news release,
including reserves and present value of future net revenues, development plans,
drilling locations, and anticipated production from Gold Creek, constitute
forward-looking information which are subject to risks and uncertainties. See
"Forward-Looking Information".


Highlights:

- Cash flow from operations of $1,156,096 or $0.07 per share for the year.

- Record company production in the fourth quarter of 565 boe/day with full year
production averaging 366 boe/day.


- Before tax present value of Gross Proved plus Probable reserves discounted at
10% and using forecast prices of $27,116,000 at March 31, 2009.


- Gross Proved plus Probable reserves of 1,596,000 boe at March 31, 2009.

- Before tax present value of Gross Proved reserves discounted at 10% and using
forecast prices of $15,272,000 at March 31, 2009.


- Gross Proved reserves of 872,000 boe at March 31, 2009.

- During the year ended March 31, 2009, Fairmount disposed of 939,000 Gross
Proved plus Probable boe through the sale of its interests in the Harmattan and
Crossfield properties for aggregate gross proceeds of $14.25 million before
closing adjustments.


- The Board of Directors continues to assess various strategic alternatives to
maximize shareholder value.




Operations

----------------------------------------------------------------------------
                         Year Ended            Three Months Ended
                              March     March  December September      June
                                 31,       31,       31,       30,       30,
                               2009      2009      2008      2008      2008
----------------------------------------------------------------------------
Wells drilled - gross             6         0         2         3         1
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Wells drilled - net             3.8         0       0.8       2.5       0.5
----------------------------------------------------------------------------
Natural gas production -
 mcf/day                      1,390     2,262       990       914     1,412
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Oil production bbl/day            5         2         2         8         7
----------------------------------------------------------------------------
NGL production bbl/day          130       186        89        84       162
----------------------------------------------------------------------------
Average daily production -
 boe/day                        366       565       256       245       404
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Average selling price -
 natural gas $/mcf        $    7.03  $   4.79  $   7.13  $   8.73  $   9.40
----------------------------------------------------------------------------
Average selling price -
 oil $/bbl                $  103.07  $  48.56  $  54.04  $ 111.12  $ 123.35
----------------------------------------------------------------------------
Average selling price -
 NGL's $/bbl              $   47.86  $  31.75  $  43.56  $  62.73  $  60.73
----------------------------------------------------------------------------
Average selling price -
 $/boe                    $   45.00  $  29.81  $  43.16  $  57.82  $  59.34
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                         Year Ended            Three Months Ended
                              March     March  December September      June
                                 31,       31,       31,       30,       30,
                               2008      2008      2007      2007      2007
----------------------------------------------------------------------------
Wells drilled - gross             6         2         3         0         1
----------------------------------------------------------------------------
Wells drilled - net             2.9       1.0       1.8       0.0       0.1
----------------------------------------------------------------------------
Natural gas production -
 mcf/day                      1,370     1,439     1,307     1,333     1,402
----------------------------------------------------------------------------
Oil production bbl/day           15        12        13        19        17
----------------------------------------------------------------------------
NGL production bbl/day          139       162       138       116       140
----------------------------------------------------------------------------
Average daily production -
 boe/day                        383       414       369       357       390
----------------------------------------------------------------------------
Average selling price -
 natural gas $/mcf         $   6.59  $   7.94  $   6.07  $   5.17  $   7.06
----------------------------------------------------------------------------
Average selling price - oil
 $/bbl                     $  81.85  $  97.84  $  86.70  $  78.61  $  69.99
----------------------------------------------------------------------------
Average selling price -
 NGL's $/bbl               $  46.29  $  52.91  $  48.01  $  40.26  $  41.99
----------------------------------------------------------------------------
Average selling price -
 $/boe                     $  43.67  $  51.16  $  42.55  $  36.51  $  43.41
----------------------------------------------------------------------------



Total Company-2009

In the first quarter daily production was consistent with the prior year exit
rate with Gold Creek contributing 225 boe/day and Harmattan contributing 138
boe/day.


Harmattan was sold at the end of the second quarter, on September 30, 2008.
During the second quarter, Harmattan contributed 140 boe/day to production.
However, production from Gold Creek was only 63 boe/day in the second quarter
due to a longer than anticipated plant shut down of the BP Canada South Wapiti
plant for a major scheduled plant turn-around. Due to the three week shut down,
flush production from other wells which had priority over our wells restricted
our capacity for most of the quarter.


In the third quarter, Gold Creek contributed 220 boe/day of production as the
restrictions caused by the plant turnaround were removed and we were allowed to
produce more volume and tie-in new wells. Full productive capacity at Gold Creek
was hampered by various bottlenecks which were largely resolved by the end of
this quarter.


In the fourth quarter, Gold Creek contributed 509 boe/day of production as the
capacity constraints and bottlenecks previously encountered were eliminated with
production coming on-stream from most wells.


Gold Creek

The Gold Creek area is located on the southern flank of the Peace River Arch,
near Grande Prairie, Alberta. Fairmount has working interests ranging from 30%
to 84% in 13.75 contiguous sections of land in the Gold Creek area. Fairmount is
the operator of all of its existing Gold Creek wells.


During the year, Fairmount participated in the drilling of 3 new wells (1.3 net)
at Gold Creek. Two (1.0 net) wells were tied-in and brought onto production
during the year, with one (0.30 net) standing awaiting tie-in operations at
March 31, 2009.


Gold Creek contributed an average of 509 boe/day of production for the three
months ended March 31, 2009 with an average of 253 boe/day for the year ended
March 31, 2009 as compared to 132 boe/day in the prior year. Much of the year
was spent working with our partners and the infrastructure owners in the Gold
Creek area to add capacity to the gathering system by removing production
restrictions due to various bottlenecks and bring our wells onto production. We
now believe we have addressed all of the capacity bottlenecks which have
constrained production levels historically and we anticipate being able to flow
all current wells without restriction going forward.


Fairmount and partners own gathering and compression facilities sufficient to
process 11 mmcf/day of raw gas from the Gold Creek area. Based on the productive
capability of existing wells and anticipated productive capability from planned
future wells, there is potential the current infrastructure capacity will not be
sufficient to allow unrestricted production from future wells. This means the
Company may need to create new or expand existing infrastructure to handle the
total productive capability of current and future Gold Creek wells. The Company
has started planning alternatives to provide additional capacity should this be
required.


Based on the results of the ten wells drilled to date on this property, geologic
mapping, and/or 2D and 3D seismic Fairmount has identified an additional 6
drilling locations on existing Company lands.


Certain information contained in this section is forward-looking and as such is
subject to certain risks and uncertainties. Reference should be made to the
discussion of risks and uncertainties that may influence Fairmount's actual
results contained under the headings "Forward-Looking Information" and "Risks".


Thorsby

The Thorsby property is located in west central Alberta, approximately 32
kilometres southwest of Edmonton. Fairmount entered into a farm-in agreement
with a major Canadian independent oil and gas company and drilled a successful
exploratory well in January 2008, and as a result earned a 100% working interest
in 2 sections of land, with drilling options on additional lands. The well was
completed in 3 zones and was placed on production during September 2008. During
the quarter ended March 31, 2009, this well contributed 16 boe/day of production
or 11 boe/day of production for the full year period ended March 31, 2009.


Fairmount drilled and cased 1 well (0.5 net) at Thorsby during the third quarter
and the well was successfully completed during the fourth quarter. This well is
currently standing with tie-in operations awaiting further area development. As
a result of the two successful wells drilled to date, Fairmount has identified
additional follow-up locations for potential future drilling.


Chin Coulee

The Chin Coulee property is located in southern Alberta, approximately 50
kilometres east of Lethbridge. Fairmount drilled and cased two wells (2.0 net)
on these lands during the second quarter but completion operations were not
successful and these wells were abandoned in the third quarter.


Harmattan

The Harmattan property is located approximately 105 kilometres north west of the
city of Calgary. Fairmount had an interest in approximately 20 sections of land
at Harmattan, with an average working interest of approximately 8%. Most wells
at Harmattan are oil wells with associated gas and natural gas liquids
production. Fairmount also owned 10% of the gathering and field compression
facilities at Harmattan.


On September 30, 2008 the Company completed the sale of its interests in the
Harmattan area to Pengrowth Energy Trust for $12,000,000 before closing
adjustments. The Harmattan property was assigned 528,000 boe of proved reserves
with a net present value before tax discounted at 10% of $10,556,000 in the
Company's NI 51-101 compliant independent reservoir engineering report as at
March 31, 2008 (1). Prior to the sale on September 30, Harmattan contributed 140
boe/day of production for the six months ended September 30 or 70 boe/day for
the full year period ended March 31, 2009.


The Harmattan property was the Company's first oil and gas property. Fairmount
participated in the drilling of 47 wells (3.8 net) during the four years prior
to its sale. The sale of the Harmattan property was the final step in the full
cycle business model with respect to this property. Over the past four years,
Fairmount participated in the drilling and the construction of infrastructure to
bring this property onto production and create reserve value. The exploration
and development opportunity for this property was largely exhausted and the
reserve value confirmed through production history. As a long life producing
asset, Harmattan no longer fit with the Company's high growth business model and
was successfully monetized.


Crossfield

Fairmount had a land position of approximately 5 sections with an average
working interest of approximately 47.5% in the Crossfield area, north west of
Calgary. On August 15, 2008 the Company completed the sale of its interests in
the Crossfield area to Bonavista Energy Trust for $2,250,000 before closing
adjustments. The Crossfield property was assigned 89,000 boe of proved reserves
with a net present value before tax discounted at 10% of $1,602,000 in the
Company's NI 51-101 compliant independent reservoir engineering report as at
March 31, 2008(1). This same report assigned 117,000 boe of proved plus probable
reserves with a net present value before tax discounted at 10% of $1,842,000(1).
Prior to the sale on August 15, Crossfield contributed an average of 22 boe/day
in the current fiscal year.


1. Additional information regarding the Company's reserves can be found in the
Company's NI 51-101 F1 Statement of Reserves Data and Other Oil and Gas
Information for 2008 as filed on Sedar at www.sedar.com. The reader is cautioned
that the estimates of reserves and future net revenue for individual properties
may not reflect the same confidence level as estimates of reserves and future
net revenue for all properties due to the effects of aggregation.




Financial Results and selected financial information

----------------------------------------------------------------------------
              Year Ended                     Three Months Ended
                   March        March     December    September        June
$ except number       31,          31,          31,          30,         30,
 of shares          2009         2009         2008         2008        2008
----------------------------------------------------------------------------
Natural gas
 sales         3,567,541      975,540      649,772      734,434   1,207,795
----------------------------------------------------------------------------
Crude oil and
 natural gas
 liquids sales 2,447,580      539,187      367,986      566,234     974,173
----------------------------------------------------------------------------
Interest
 income                -            -            -            -           -
----------------------------------------------------------------------------
Royalties     (1,534,820)    (449,440)    (220,285)    (250,232)   (614,863)
----------------------------------------------------------------------------
Revenue        4,547,060    1,065,287      754,849    1,307,152   1,419,772
----------------------------------------------------------------------------
Production
 expenses      1,258,014      446,925      253,395      216,791     340,903
----------------------------------------------------------------------------
General and
 administrative
 expenses      1,621,993      573,850      366,528      322,300     359,315
----------------------------------------------------------------------------
Depletion,
 depreciation
 & accretion   3,397,550    1,470,661      562,261      478,442     886,186
----------------------------------------------------------------------------
Interest
 expense         457,607       33,996       54,641      171,763     197,207
----------------------------------------------------------------------------
Net income
 (loss) before
 income taxes (2,432,080)  (1,527,373)    (468,388)      42,713    (479,032)
----------------------------------------------------------------------------
Recovery of
 future income
 taxes                 -            -            -            -           -
----------------------------------------------------------------------------
Net income
 (loss)       (2,432,080)  (1,527,373)    (468,388)      42,713    (479,032)
----------------------------------------------------------------------------
Net income
 (loss) per
 share - basic    $(0.14)      $(0.09)      $(0.03)       $0.00      $(0.03)
       - diluted  $(0.14)      $(0.09)      $(0.03)       $0.00      $(0.03)
----------------------------------------------------------------------------
Weighted
 average common
 shares
 outstanding:
----------------------------------------------------------------------------
 - basic      16,856,068   16,348,756   16,702,606   17,167,204  17,198,400
----------------------------------------------------------------------------
 - diluted    16,856,068   16,348,756   16,702,606   17,277,979  17,198,400
----------------------------------------------------------------------------


----------------------------------------------------------------------------
              Year Ended                     Three Months Ended    
                   March        March     December    September        June
$ except number of    31,          31,          31,          30,         30,
 shares             2008         2008         2007         2007        2007
----------------------------------------------------------------------------
Natural gas
 sales         3,303,683    1,039,287      729,918      633,856     900,622
----------------------------------------------------------------------------
Crude oil and
 natural gas
 liquids sales 2,808,915      888,314      714,465      565,123     641,013
----------------------------------------------------------------------------
Interest
 income           12,129          111        3,511        3,840       4,667
----------------------------------------------------------------------------
Royalties     (1,621,296)    (537,145)    (317,908)    (345,581)   (420,662)
----------------------------------------------------------------------------
Revenue        4,493,474    1,351,713    1,142,088      865,907   1,133,766
----------------------------------------------------------------------------
Production
 expenses      1,148,054      328,057      288,903      315,449     215,645
----------------------------------------------------------------------------
General and
 administrative
 expenses      1,290,150      303,737      247,875      344,248     394,290
----------------------------------------------------------------------------
Depletion,
 depreciation
 & accretion   3,296,528      907,170      834,993      764,453     789,912
----------------------------------------------------------------------------
Interest
 expense         656,560      176,920      164,867      179,169     135,604
----------------------------------------------------------------------------
Net income
 (loss) before
 income taxes (2,197,035)    (408,837)    (463,674)    (820,840)   (503,684)
----------------------------------------------------------------------------
Recovery of
 future income
 taxes         1,402,166    1,402,166            -            -           -
----------------------------------------------------------------------------
Net income
 (loss)         (794,869)     993,329     (463,674)    (820,840)   (503,684)
----------------------------------------------------------------------------
Net income
 (loss) per
 share - basic    $(0.05)       $0.06       $(0.03)      $(0.06)     $(0.04)
       - diluted  $(0.05)       $0.06       $(0.03)      $(0.06)     $(0.04)
----------------------------------------------------------------------------
Weighted average
 common shares
 outstanding:
----------------------------------------------------------------------------
 - basic      15,008,384   17,241,614   15,457,889   13,671,889  13,671,889
----------------------------------------------------------------------------
 - diluted    15,008,384   17,241,614   15,457,889   13,671,889  13,671,889
----------------------------------------------------------------------------



Reconciliation of cash flow from operations to net income (loss):

The terms "cash flow" or "cash flow from operations" as used below do not have
any standardized meaning prescribed by GAAP and should not be considered an
alternative to, or more meaningful than, cash flow from operating activities or
net income (loss) as determined in accordance with GAAP as an indicator of the
Company's performance. In addition, the Company's determination of cash flow
from operations may not be comparable to that reported by other companies. The
reconciliation between net income (loss) and cash flow from operations is set
out below. Fairmount believes this measure is meaningful because it is an
indicator of funding sources for on-going efforts to replace production volumes
and increase reserve volumes. The Company also presents cash flow from
operations per share which is calculated using the same methodology as earnings
per share; however this measurement also does not correspond to GAAP.




----------------------------------------------------------------------------
                     Year Ended                Three Months Ended
                          March       March   December  September      June
$ except per share           31,         31,        31,        30,       30,
 amounts                   2009        2009       2008       2008      2008
----------------------------------------------------------------------------
Net Income (loss)    (2,432,080) (1,527,373)  (468,388)    42,713  (479,032)
Depletion,
 depreciation and
 accretion            3,397,550   1,470,661    562,261    478,442   886,186
Stock-based
 compensation           243,976      67,228    (13,588)    75,143   115,193
Loss (gain) on
 forward commodity
 contracts              (44,350)          -     48,925   (254,285)  161,010
Future income taxes
 (recovery)                   -           -          -          -         -
----------------------------------------------------------------------------
Cash flow from
 operations           1,165,096      10,516    129,210    342,013   683,357
----------------------------------------------------------------------------
Cash flow per common
 share:
----------------------------------------------------------------------------
 - Basic                  $0.07       $0.00      $0.01      $0.02     $0.04
----------------------------------------------------------------------------
 - Diluted                $0.07       $0.00      $0.01      $0.02     $0.04
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                     Year Ended                Three Months Ended
                          March       March   December  September      June
$ except per share           31,         31,        31,        30,       30,
 amounts                   2008        2008       2007       2007      2007
----------------------------------------------------------------------------
Net Income (loss)      (794,869)    993,329   (463,674)  (820,840) (503,684)
Depletion, 
 depreciation and
 accretion            3,296,528     907,170    834,993    764,453   789,912
Stock-based
 compensation           299,217      44,666     69,124     83,428   101,999
Loss (gain) on
 forward commodity
 contracts               44,350      44,350          -          -         -
Future income taxes
 (recovery)          (1,402,166) (1,402,166)         -          -         -
----------------------------------------------------------------------------
Cash flow from
 operations           1,443,060     587,349    440,443     27,041   388,227
----------------------------------------------------------------------------
Cash flow per common
 share:
----------------------------------------------------------------------------
 - Basic                  $0.10       $0.03      $0.03      $0.00     $0.03
----------------------------------------------------------------------------
 - Diluted                $0.10       $0.03      $0.03      $0.00     $0.03
----------------------------------------------------------------------------



Forward - Looking Information

This news release contains forward-looking information, including but not
limited to the Company's plans to review strategic alternatives for maximizing
shareholder value, estimated reserves and future net revenues, future
exploration and development plans and anticipated production levels. Information
relating to reserves and related future net revenue has been independently
evaluated by GLJ Petroleum Consultants Ltd. and is forward-looking information
as it involves the implied assessment, based on certain estimates and
assumptions that the reserves described can be profitably produced in the
future. Additionally, estimates of future net value involve assumptions relating
to production rates, commodity prices and exchange rates, operating costs,
capital expenditures and well abandonment costs. This information relates to
future events or the Company's future performance. All statements and
information other than statements of historical fact are forward-looking
information. In some cases, forward-looking information can be identified by
terminology such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "estimate", "predict", "potential", "continue", or the negative of
these terms or other comparable terminology. Forward-looking information
relating to reserves and future net revenue are estimates only. Actual reserves
and future net revenues will differ from those estimated by GLJ Petroleum
Consultants Ltd. and such differences may be material. By its nature,
forward-looking information involves numerous assumptions, known and unknown
risks and uncertainties, both general and specific, that contribute to the
possibility that the predictions, forecasts, projections and other
forward-looking information will not occur. Forward-looking information is based
on assumptions, including, among other things, the Company's ability to benefit
from the combination of growth opportunities and the ability to grow through the
capital markets; the Company's acquisition strategy, the criteria to be
considered in connection therewith and the benefits to be derived therefrom;
sustainability and growth of production and reserves through prudent management
and acquisitions; the emergence of accretive growth opportunities; the impact of
Canadian and Alberta governmental regulation on the Company; the strategy of the
Company regarding commodity price risk management, changes in oil and natural
gas prices and the impact of such changes on cash flow; the level of capital
expenditures devoted to development activity rather than exploration; the use of
development activity and/or acquisitions to replace and add to reserves; the
quantity of oil and natural gas reserves and oil and natural gas production
levels; and currency, exchange and interest rates.


Although the Company believes that the expectations reflected in the
forward-looking information are reasonable, there can be no assurance that such
expectations will prove to be correct. The Company can not guarantee future
results, levels of activity, performance, or achievements. Moreover, neither the
Company nor any other person assumes responsibility for the accuracy and
completeness of the forward-looking information. Some of the risks and other
factors, some of which are beyond the Company's control, which could cause
results to differ materially from those expressed in the forward-looking
statements contained in this press release include, but are not limited to,
general economic conditions in Canada, the United States and globally; the
actual productive capacity from new and existing wells in the Gold Creek area
may differ materially from the Company's forecasted production rates once wells
come onto production and the timing of wells coming onto production may differ
materially from that expected by the Company; industry conditions, including
fluctuations in the price of crude oil, natural gas and natural gas liquids and
services used by the Company; uncertainties associated with estimating reserves;
royalties payable in respect of oil and gas production; governmental regulation
of the oil and gas industry, including income tax and environmental regulation;
fluctuation in foreign exchange or interest rates; stock market volatility and
market valuations; the impact of environmental events; the need to obtain
required approvals from regulatory authorities; unanticipated operating events
which can reduce production or cause production to be shut-in or delayed;
failure to obtain industry partner and other third party consents and approvals,
when required; third party performance of obligations under contractual
arrangements; and the current financial downturn has resulted in severe economic
uncertainty and resulting illiquidity in capital markets which increases the
risk that actual results will vary from forward-looking expectations and these
variations may be material. Subject to the company's obligations under
applicable securities laws, the Company is not under any duty to update any of
the forward-looking information after the date of this press release to conform
such statements to actual results or to changes in the Company's expectations.


Per barrel of oil equivalent amounts have been calculated using a conversion
rate of six thousand cubic feet of natural gas to one barrel of oil (6:1).
Barrel of oil equivalents ("boe") may be misleading, particularly if used in
isolation. A boe conversion of ratio 6 mcf:1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. Present values of future net
revenue do not represent fair market value of Fairmount's reserves.