Exall Operations Update, July 2008

CALGARY, ALBERTA–(Marketwire – July 29, 2008) – Exall Energy Corporation (TSX:EE) (“Exall” or the “Company”) is pleased to announce the following updates to operations:

Highlights:

– Permanent all-weather road access to the Marten Mountain oil discovery northwest of Edmonton, Alberta, has been completed allowing the well to be placed on permanent production starting July 22.

– The Marten Mountain horizontal well is producing at an average rate of 748 barrels of oil per day (BOPD).

– Two additional wells are planned on the Marten Mountain lands in Q3 of this year.

Construction of a permanent bridge and road to the Marten Mountain horizontal well site has been completed and the well was put back on production July 22. The well is producing at a stabilized rate of 748 BOPD (444 BOPD net to Exall) plus 200 MCFPD of solution gas. The solution gas is currently being flared.

Production from the well will be restricted to the Energy Resources Conservation Board (ERCB) new oil well test allowable of 290 BOPD for the remaining three-month test period and 145 BOPD thereafter. Exall plans to produce the entire 2008 well allowable prior to the end of September, at which time the well will be shut in to allow the drilling of the two additional development locations established by this well. Exall continues to pursue water injection and Good Production Practice (GPP) approval, which will allow higher production rates. The pipeline and battery facilities currently under design will be built once higher production rates have been approved.

Exall Energy Corporation is a junior oil and gas company active in its business of oil and gas exploration, development and production from its properties in Alberta, British Columbia and Texas. Exall is currently developing a new oil discovery in north- central Alberta which will add significant production over the next 12 months.

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