Colonia Posts Continued Strong Financial and Operating Results for the Second Quarter 2008

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

COLONIA ENERGY CORP. (the "Company") (TSX VENTURE:CLA) released today its
un-audited financial statements for the three and six month periods ended June
30, 2008.


The Company is pleased to report continued growth in all metrics for the second
quarter, 2008. Production for the period averaged 168 BOE/d, up 283% over the
previous year's corresponding quarter with light sweet oil accounting for 78% of
production. Revenues for the quarter jumped more than five and a half times to
over $1,689,000 while cash flow rose more than twenty-fold to over $1,197,000.
Net earnings for the three-month period were $677,000, up significantly from the
$60,000 loss reported the year prior. The Company's average price received per
BOE in the second quarter of 2008 was $110.68 leading to impressive field
netbacks averaging $87.78 per BOE.


Colonia's success in our core area of Florence South in southeastern
Saskatchewan continued in the second quarter with the spudding of a 50% working
interest horizontal Midale well in early May. This well was placed on regular
production through the Company's central battery facilities at initial rates in
excess of 100 bopd in the latter part of that month. A 50% working interest
step-out horizontal well which spudded just prior to the end of June will be
abandoned as testing operations in July confirmed the well to be water bearing.


Extended production testing of the 45% working interest Florence 1C5-1 HZ well
which was drilled in August, 2006 is planned to commence in early September.
Testing had been delayed due to water disposal constraints. The Company has
additional lands located along this trend, with drilling pending the extended
production test results.


During the first half of 2008, the Company leased over six net sections of
prospective acreage in the southeastern Saskatchewan Bakken light oil resource
play. The year-to date 2008 Provincial Crown sales immediately adjacent and
contiguous to the Company's lands have sold for average values of $2,500 per
hectare. Colonia will continue to expand its Bakken land inventory as well as to
acquire additional prospective lands for Mississippian targets in and around its
Florence South core area.


In North Dakota, a vertical well re-entry operation on a Ratcliffe light oil
prospect at Missouri Ridge, located approximately 50 miles south of the
US/Canada border was unsuccessful in negotiating re-entry into the old
production casing. Partners are currently evaluating the drilling of a new well
into the prolific target zone.


Colonia has successfully increased its land and light oil prospect inventory in
southeast Saskatchewan and northwestern North Dakota at a pace commensurate with
the Company's surging cash flow. While the Company is committed to expand its
asset base to include non-associated gas prospects as well as growth through
acquisitions and corporate combinations in the future, it will continue its
focus in southeast Saskatchewan of adding high quality light oil to its
production base which currently yields netbacks that are amongst the highest in
the industry.


Additional information on Colonia Energy Corp. may be viewed on SEDAR at
www.sedar.com or visit our website at www.coloniaenergy.ca.


Advisory

This news release contains forward looking statements which may include
assumptions related to the Company's drilling success, production, capital
expenditures and cash flow. These statements are based on current expectations
that involve a number of risks and uncertainties which could cause actual
results to vary from those anticipated.


BOE Presentation - The term barrels of oil equivalent (BOE) 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. All BOE
conversions in this report are derived by converting gas to oil in the ratio of
six mcf of gas to one bbl of oil.