Nexstar Energy to Drill New Light Oil Resource Play

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

Nexstar Energy Ltd. ("Nexstar Energy" or the "Company") (TSX VENTURE:NXE.A) (TSX
VENTURE:NXE.B) is pleased to provide the following update:


West Central Alberta - New Light Oil Resource Play Identified

The Company has recently secured several farmin and option agreements
encompassing over 7000 gross acres on a new light oil prospect in west central
Alberta and has committed to the drilling of two earning wells. Several existing
abandoned wells on the farmin lands indicate bypassed oil pay which management
believes may have resource potential of up to 500,000 barrels of oil equivalent
recoverable per section. The first earning well will involve the vertical
twinning of an abandoned well which exhibits untested bypassed potential in
three horizons including the main target zone. If successful as a vertical well,
follow-up horizontal wells are planned to exploit the resource potential of
these lands. The second earning well will involve the twinning of an existing
well with potential bypassed pay, followed by a minimum 1000 meter horizontal
section to evaluate the target formation. Horizontal wells will be completed
using multi-stage frac technology which has been successfully utilized on
similar resource plays in western Canada. If this initial horizontal well is
successful, management has identified up to 15 additional light oil drilling
locations on the farmin and option lands for further development. The gross cost
for the drilling, completion, multi-stage fracturing and equipping of each
horizontal well is estimated at $2.4 million. The Company has initiated surface
acquisition activities for the drilling of the earning wells and subject to
surface access, drilling operations are expected to commence in September 2008.
Nexstar Energy plans to participate for up to 50% in this project and will be
required to secure new financing for its participation in these wells. As there
is no assurance that the Company will be able to secure new financing, the
Company plans to obtain joint venture participants capable of funding the entire
project, if required.


Pembina Area, Alberta - Oil and Gas Well Tie-Ins

Field operations are expected to commence in August to tie-in two existing wells
(net .90) which management expects to provide up to 50 boepd net to the Company.
A third well (.60 net) in the area, which was previously thought to have
encountered poor reservoir quality has recently shown significant wellhead
pressure and is currently being re-tested for production potential. Subject to
the test results, this well could be tied in to existing Company infrastructure
in the third quarter. Also in the Pembina region, Nexstar Energy recently
finalized the installation of wellsite compression on its 100% working interest
04-19-47-3 W5M natural gas well with good initial results. The well has produced
intermittently at rates of up to 450 mcfd but with increased water production.
As a result of the recent downtime experienced with this well and increased
water production, the well is currently shut-in pending the possible
installation of artificial lift to deal with increased water production.


Whitecourt Area, Alberta - Deep Drilling Targets Identified on 3-D

In mid-April, the Company submitted a pre-licence application to the Energy
Resources Conservation Board ("ERCB") for the drilling of a planned test well in
the South Whitecourt area. This exploratory prospect (33% working interest)
resulted from an airborne survey utilizing stress-field detection technology
("SFD") and was subsequently confirmed utilizing conventional 3-D seismic. The
proposed exploratory well will target a seismically defined Swan Hills
collapse-feature in an area of dolomite reservoir development. The Swan Hills
formation, if hydrocarbon-bearing, is expected to contain sour natural gas with
the secondary Gilwood formation targeting light oil at a planned total depth of
3100 metres. This exploratory well is expected to qualify for depth-related
royalty benefits under the proposed new Alberta royalty program, effective
January 1, 2009. The Company is presently awaiting ERCB response for the
pre-licence application and will provide updates as appropriate. At Goodwin, in
the Whitecourt area, Nexstar Energy has recently entered into a farmout
agreement with a third party group for the drilling, completion and equipping of
a shallow exploratory well (.25 net before farmout, .10 net after farmout). This
non-operated well will be drilled at no cost to the Company and will test the
potential of several shallow sandstone reservoirs with indicated bypassed
natural gas pay. Drilling operations are expected to commence in mid-August and
if successful, the well will be tied-in to an existing pipeline system adjacent
to the farmout lands.


Puskwa Area, Alberta - Prospective Lands Acquired

Within the last year, Nexstar Energy has acquired an interest in four sections
of exploratory lands in this rapidly developing Beaverhill Lake light oil and
Montney natural gas prone area. The Company presently holds an average 21%
working interest in 2560 gross acres (544 net acres) of exploratory lands, some
of which have recently been offset with competitor drilled and cased potential
oil and gas wells. The Company plans to assess the competitor well results and
will either participate in the development of these lands, sell or farmout its
interest in the region once additional information is obtained.


Financial Update - Class A Shares Issued

Nexstar Energy also announces that pursuant to its news release issued June 2,
2008, the Company has issued approximately 2.7 million Class A Shares of Nexstar
Energy at a deemed price of $0.15 per share in satisfaction of a portion of its
outstanding debts and intends to continue to settle a portion of its remaining
outstanding debts with trade creditors through the issuance of additional Class
A Shares of Nexstar Energy. Any settlements will be subject to final TSX Venture
Exchange approval and the Class A Shares issued will be subject to a four month
hold period in accordance with applicable securities laws.


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


For further information, please go to Nexstar Energy's website and view our
updated July 2008 presentation.


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.


12,621,342 Class A Shares

1,080,000 Class B Shares