PrimeGen Energy Announces Interim Operations Update

  PrimeGen Energy Corp. (PINKSHEETS: PGNE) ("PrimeGen" or the "Company") announces the following Interim update for the period from January 1, 2010 to June 30, 2010.

Key Highlights

• The average daily production rate reached 31,507 barrels of oil per day ("bopd") in Q2 2010;
• Six wells came on stream at average rates of 1,550 bopd, 1,420, 1,760, 1,900 bopd and 2,730, 2,809 bopd;
• Capital expenditure on infrastructure and drilling was approximately US$26.8 million for Q2 2010.

Vladamir Y. Protskiv, CEO, commented: "PrimeGen continues to increase production. In Q2 2010 we achieved a 3000% increase in gross production compared to Q1 2009. This year we have added 7 new wells to our drilling program, in addition to the objective of completing 25 wells by year end. Additionally, our infrastructure program for the year is proceeding as planned to facilitate our expansion."

Production Update Q2 The gross production for Q2 2010 averaged 31,507 bopd. This represents a 3000% increase over the comparable period in 2009 when the average daily production rate was 1,050 bopd.

Drilling Update Q2 Rig 0187720035 completed the Kochmesskoye #13 and #14 wells in Q2 2010. The wells tested at a combined rate of 3,680 bopd. Rig 0187720035 has since been moved to the next drill location on the Timan-Pechora property where it has commenced drilling the Kochmesskoye #15 well.

The Kesrzova rig has completed the Rod 10-24 and Rod 10-25 wells in Q2 2010. The wells tested at a combined rate of 5,548 bopd. Future wells are expected to have better performance, as they will target a more prolific area of the property.

Marketing PrimeGen has been marketing the majority of its barrels through a crude oil swap contracts with a subsidiary of a National Russian Oil Company. The terms of the swap contracts are for 5 years and expires on June 30, 2014. PrimeGen is satisfied that there is sufficient capacity in existing marketing routes to satisfy current production. The realized prices are expected to be impacted by any future changes in the marketing arrangements. PrimeGen continues to assess additional routes to market its crude oil.

Corporate restructuring On April 5, 2010, the Board of PrimeGen Energy Corp. announced that it had decided to proceed with a proposed corporate restructuring of the Company. This proposal was made following an extensive review of the options and implications of a restructuring, together with a period of shareholder consultation. PrimeGen currently quoted on Pink Sheets or OTC Markets in the United States under the Stock Symbol: PGNE. The Company is pursuing other public listing options to maximize shareholder stock value, not limited to stock exchanges in the United States or Europe. The Company moved its operations to Russia in March 26, 2010 to facilitate future expansion and development and will continue to build its infrastructure from the new location moving forward.

Capital expenditure Capital expenditure for Q2 2010 was around US$26.8 million. Of the total capital expenditure, approximately 14% was attributable to infrastructure with the balance spent on drilling.

Current Operations and Outlook Rig 0187720035 is due to complete the Kochmesskoye #15 well on August 12, 2010. Rig 0187720036 is scheduled to complete Kochmesskoye #16 well and complete a further 5 wells by the year-end. The Kesrzova rig which is expected to complete the current well on Rod 10-26 before the end of August, 2010. PrimeGen is working towards completing 25 new wells in 2010. The Company expects to be able to achieve an average production growth of approximately 15% to 20% per annum over the three year period of 2010 to 2012.

About PrimeGen Energy Corporation

PrimeGen Energy Corp. is an oil and gas exploration Company whose primary focus is exploring and developing high potential unconventional resource plays. The Company's strategy and development assets are focused on a prolific and historic oil and natural gas resource play in Krasnoarmeiskome District, Saratovskoi Oblast in Russia. The Company is headquartered in Moscow, Russia. PrimeGen Energy plans to use its comparative advantages in certain geographic regions to expand rapidly through strategic acquisitions of small oil and gas producing entities and production assets including wells, properties, operating equipment, and pipelines.

Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the development of an early stage company in the alternative energy industry, its products, and the entry into new markets for such products. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's current and periodic reports filed from time to time with the Securities and Exchange Commission.

Contact: Vladamir Y. Protskiv PrimeGen Energy Corporation Email: [e-mail] Tel: [phone] http://www.primegenenergycorp.com