Nexstar Energy Announces Initial Closing of Private Placement and Settlement of Bank Debt

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO US PERSONS.

Nexstar Energy Ltd. (TSX VENTURE:NXE.A) (TSX VENTURE:NXE.B) ("Nexstar Energy" or
the "Company") is pleased to announce that, further to the Company's press
release issued on November 21, 2008, it closed the first tranche of its
previously announced private placement of up to $3,500,000 (the "Private
Placement"). The initial closing resulted in the receipt by the Company of gross
proceeds of $2,660,000 from the sale of Units (the "Units"). The Company further
advises that it is accepting additional subscriptions and intends to close up to
a minimum amount of $2,900,000 in the Private Placement. The Company has
scheduled a second closing to occur within the next two weeks to complete this
minimum amount. Each Unit of the Private Placement is priced at $1,000 and is
comprised of a $1,000 Convertible Debenture providing an 8% annual interest rate
and 20,000 Purchase Warrants to acquire Flow-Through Class A Shares of the
Company (the "Class A Warrants"). Each $1,000 Debenture will be purchased at an
ascribed value of $980, will mature on November 21, 2010 at par and will be
convertible at the option of the holder at any time prior to maturity into
20,000 Class A Shares of the Company. Each full Class A Warrant will be
exercisable for one Class A Share of the Company at a price of $0.05 per share
until November 21, 2009. The funds from the Private Placement will be utilized
by the Company for exploration and development drilling in the Company's core
areas, debt reduction and working capital. All securities issued pursuant to the
Private Placement will be subject to a four month hold pursuant to applicable
securities legislation. The Company agreed to pay finder's fees to Blackmont
Capital Inc. on the private placement proceeds, which include a 1%
reorganization fee, 8% on retail orders, 5% on fund orders and 6.5% broker
warrants, which are convertible into Class A Shares of the Company at $0.05
until November 21, 2009.


The Company is also pleased to advise that in conjunction with the Private
Placement, it has finalized the previously announced agreement with respect to
settlement of its indebtedness with its major lender. As a result of this
agreement, the Company has eliminated its bank debt.


About Nexstar Energy

Nexstar Energy is a newly reorganized junior oil and gas company that is focused
on drilling multi-zone oil and natural gas prospects in western Canada,
complemented by strategic acquisitions.


This document contains forward-looking information that is based on expectations
and estimates as of the date of this document. This forward-looking information
is information that is subject to known and unknown risks and other factors that
may cause future actions, conditions or events to differ materially from the
anticipated actions, conditions or events expressed or implied by such
forward-looking information. Forward-looking information is information that
does not relate strictly to historical or current facts, and can be identified
by the use of the future tense or other forward-looking words such as
"proposed", "believe", "expect", "anticipate", "intend", "plan", "estimate",
"should", "may", "objective", "projection", "forecast", "continue", "strategy",
"position" or the negative of those terms or other variations of them or
comparable terminology. Examples of such forward-looking information in this
document include but are not limited to the following, each of which is subject
to significant risks and uncertainties and is based on a number of assumptions
which may prove to be incorrect. The Company will be required to secure
financing in order to participate in the projects referenced in this document
and there is no assurance that the Company will be able to secure such
financing. This forward-looking information represents the Company's views as of
the date of this document and such information should not be relied upon as
representing the Company's views as of any date subsequent to the date of this
document. The Company has attempted to identify important factors that could
cause actual results, performance or achievements to vary from those current
expectations or estimates expressed or implied by the forward-looking
information. However, there may be other factors that cause results, performance
or achievements not to be as expected or estimated and that could cause actual
results, performance or achievements to differ materially from current
expectations. There can be no assurance that forward-looking information will
prove to be accurate, as actual results and future events could differ
materially from those expected or estimated in such statements. Accordingly,
readers should not place undue reliance on forward-looking information. These
factors are not intended to represent a complete list of factors that could
affect the Company. Boes may be misleading, particularly if used in isolation. A
boe conversion ratio of 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.


13,032,869 Class A Shares

1,080,000 Class B Shares