N e w s R e l e a s e Petrostar Updates Shareholders on Previous Announcements January 13, 2011 - Victoria, BC - Petrostar Petroleum Corp. (TSX-Venture: PEP; Frankfurt: LMQ; “Petrostar” or “the Company”) would like to update its shareholders as to the status of announcements made in earlier Company news releases. 1. Regarding the $20 million financing deal wNith Capital Corp Merchant Bank (CCMB) of Orlando, Florida: The terms of this agreement were first announced on September 7, 2010 and updated on September 29, 2010. The update stated that Capital Corp Merchant Bank had begun its due diligence as part of its final decision process for granting the financing to Petrostar. This process was estimated to take 60 days, but has taken much longer than anticipated. The update from CCMB states that the next step has been taken and all of the information for third party valuation appraisal has been sent to American Appraisal. American Appraisal has offices in many countries around the world including Canada. CCMB has indicated that once a satisfactory final appraisal has been received, CCMB will prepare final closing documents for funding, which would then be filed with the TSX Venture Exchange for approval. This process is estimated to take 15 - 30 days to complete. A multi-well drill program on the Company’s Bakken area properties is planned to start once funding is completed. The Bakken project will then become a joint venture project between Petrostar and CCMB. 2. Regarding the sale of the Maidstone and Lashburn heavy oil properties: The terms of this agreement were first announced on September 29, 2010. On October 15, 2010, it was announced that the sale for $1.3 million had not completed and the offer was withdrawn. At that time, management decided to accept new offers and market the two properties that made up the original deal as separate entities. The asking price for Maidstone was $750,000 and Lashburn was $550,000 totalling the $1.3 million. The Company is in discussion with two different companies interested in the Maidstone property and one company interested in the Lashburn property. Petrostar will announce details of any deal upon completion.
. . . 2 Petrostar Petroleum Corporation News Release January 13, 2011 Page 2 3. Regarding the Electric Tank Heater (ETH) sale: Further to the news release of October 8, 2010, Petrostar and its ETH distributor, King Energy, have received inquiries regarding the ETH and are working on quotes for future sales. Some of the quotes are for specialized heating solutions for different applications than what the ETH was originally designed for, thus there is additional engineering that needs to be calculated and/or possible modifications needed to the heater to suit individual client needs. These enquires are currently being processed and further sales are expected. Petrostar’s Down Hole Heating Tool (DHT) is currently being reviewed by engineers associated with King Energy. The DHT may require further engineering and design changes, therefore the DHT is not being marketed until the review is complete. The Management of Petrostar wishes to thank its shareholders for their continued support and confidence while these projects work toward their completion. About Petrostar Petroleum Corp. Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders’ risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator. Petrostar is committed to advancing the use of “green technologies” where possible in the exploration and production of oil and gas. Petrostar and its partner, King Energy Distribution, are working together to lessen overall emissions by developing, using and distributing new technologies to the oil and gas industry. On behalf of the Board of Directors, Bruce Scafe, President |