August 7, 2008

Independent Petroleum Engineering Report Suggests Value of Capital City Energy Group’s Oil and Gas Proven Reserves Increased By 50% in Latest Quarter

Capital City Energy Group, Inc. (OTCBB: CETG) announced today results from an independent reserve report conducted by James Engineering, Inc in Marietta, Ohio, a leading petroleum engineering firm, to value the Company's proven oil and gas reserves. The Report concluded that the value of the Company's reserves increased by nearly 50% during the past quarter, despite James Engineering using a conservative pricing model for their oil and natural gas reserves. The evaluation was conducted on the Company's 178 producing properties located in 14 States.

"We are pleased that we were able to double the value of our reserves, despite the fact that we are in the early stages of proving up the oil and gas assets on our properties," said Capital City Chief Executive Officer Timothy W. Crawford. "This reserve report will enhance our financial flexibility and validates our strategy of low-risk exploration and production activities that will deliver near-term revenue."

About Capital City Energy Group, Inc.

Based in Columbus, Ohio, Capital City is a diversified oil and natural gas company with three separate divisions. Capital City is evolving from being an innovative leader in the design, management and sponsorship of retail and institutional direct participation energy programs to become one of the few vertically integrated independent oil & natural gas companies. Their strategy is to continue to grow a portfolio of core areas that provide growth opportunities through grass-roots drilling, operating, service companies, acquisitions and fund management.

"Investing in America's Energy Future"

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Safe Harbor Statement

Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of our officers and directors during presentations about our energy funds, along with Capital City Energy Group's filings with the Securities and Exchange Commission, including the Company's registration statements, quarterly reports on Form 10-Q and annual report on Form 10-KSB, are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects,""anticipates,""intends,""plans,""could,""might,""believes,""seeks,""estimates" or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by the Company's management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about Capital City Energy Group, its technology, economic and market factors and the industries in which the Company does business, among other things. These statements are not guarantees of future performance and Capital City Energy Group, Inc. undertakes no specific obligation or intention to update these statements after the date of this release