Wellstar Enters Into Letter of Intent to Acquire Oil & Gas Assets and Announces Private Placement

WellStar Energy Corp. (TSX VENTURE:WSE.H)(FRANKFURT:W6V1) (the "Company" or
"WellStar"), announced today that on July 23, 2012 the Company submitted a cash
offer of US$51.5 million ("the Offer") to an arm's length vendor of non-operated
oil & gas assets located in North Dakota ("the Assets").


On September 7, 2012, after further negotiations with the vendor, the Company
signed an acceptance letter (the "Letter of Intent") whereby the vendor agreed
to the terms of the Offer and set an effective date for the transaction (the
"Transaction") of November 1, 2012. The completion of the Transaction is
conditional upon, among other things, completion of due diligence, entering into
a mutually acceptable definitive purchase and sale agreement by September 28,
2012, preparation of a National Instrument 51-101 compliant technical report;
the Company securing suitable financing within the timeframe agreed to by the
parties and obtaining all necessary regulatory approvals to the Transaction,
including the TSX Venture Exchange (the "TSX-V").


The Assets consist of significant non-operated working interests in
approximately 18,271 gross (7,159 net) acres in North Dakota. The Assets are
operated by an established Bakken exploration and production company with
multiple operated drilling rigs and dedicated hydraulic fracturing crews. Based
on data provided by the operator, including the current drill schedule in place
and forecast, all acreage is currently expected to be held by production by year
end 2013.


The Assets are currently producing approximately 450 net barrels of oil per day
from multiple wells. There are another 45 gross (10.57 net) locations identified
based on the planned drilling of Bakken and Three Forks wells per 1280 acre
drill spacing unit. The operator has currently scheduled seven gross wells to be
drilled in the first seven months of 2013 with an additional four wells
currently anticipated to be drilled during the remainder of the year. 2013
capital expenditures on the Assets are currently expected to total approximately
US$37 million.


The Company also announces a non-brokered private placement (the "Offering") of
up to 1,333,333 shares (the "Shares") at a price of $0.15 per Share for total
aggregate consideration of approximately $200,000. All securities issued in
connection with the Offering will be subject to a statutory hold period of four
months plus a day from the date of issuance in accordance with applicable
securities legislation. The net proceeds from the Offering will be used by the
Company for costs relating to the Transaction and for general working capital.
The Company may pay a finder's fee on the Offering and on the Transaction within
the amount permitted by the policies of the TSX-V. Closing of the Offering is
subject to a number of conditions, including receipt of all necessary corporate
and regulatory approvals, including the TSX-V.


The Company's president and CEO, Andrew H. Rees commented, "I am excited with
the opportunity to enter the prolific North Dakota Bakken oil play. Management
believes the key to success for a small company such as WellStar in the Bakken
is to be aligned as a non-operator with a high quality multi-billion dollar
operating partner. This allows a company to enjoy risk diversification,
technology transfer and maintain low overhead which is extremely important when
drilling $10 million wells. As a non-operator, low overhead is achieved because
WellStar isn't responsible for R&D engineering, seismic and legal or accounting
with respect to production. To advance the Company further, management will
continue developing its existing assets, while utilizing relationships in the
sector in pursue additional acquisitions under $100 million that may be deemed
too small for major players."


ON BEHALF OF THE BOARD

Andrew H. Rees, President and Chief Executive Officer

Except for historical information contained herein, this news release contains
forward-looking statements that involve risks and uncertainties. Actual results
may differ materially. Except as required pursuant to applicable securities
laws, the Company will not update these forward-looking statements to reflect
events or circumstances after the date hereof. More detailed information about
potential factors that could affect financial results is included in the
documents filed from time to time with the Canadian securities regulatory
authorities by the Company.