Exall Energy Corporation, Operations Update

CALGARY, ALBERTA, Jan 15 (MARKET WIRE) --
Exall Energy Corporation (TSX: EE) ("Exall" or the "Company") announced
today a number of recent developments.

Highlights:

- Exall plans $4 million capital expenditure program for 2008

- Operations update at Mitsue core area

- Exall drills successful well at Susan B. Harris property, Texas

- Exall plans wells at Mitsue and North Sea.

In a press release dated December 17, 2007 Exall Energy Corporation
announced that it had closed a non-brokered private placement with
aggregate gross proceeds of $2,016,001. This financing as well as
internally generated cash flow will enable Exall to complete a proposed
$4 million capital expenditure program in the Mitsue core area through
2008.

Previously announced plans (see press release dated November 27, 2007) to
drill two wells on the Marten Mountain prospect this winter are
proceeding on schedule. Site access has been completed and a rig is
scheduled to begin operations on Wednesday, January 17. The procedure
will be to re-drill the horizontal leg of the previously announced oil
discovery (see Press release dated May 29, 2007) and to complete and
production test the well. Planning of permanent access and production
facilities is also proceeding on schedule. Exall plans to drill two to
three wells in this core area this winter and to complete permanent
access and production facilities prior to spring breakup.

In November, 2007, Exall participated in the drilling of a gas well in
the Susan B. Harris Gas Unit #2 in East Texas. The well is on production
at the rate of 650 mcfpd plus liquids at 450 pounds flowing pressure from
the Cotton Valley Formation. This is the eighth successful well drilled
in the Unit. Exall has a 7.5% working interest in the well and Unit.

As of the last press release, dated November 27, 2007, Exall had agreed
to participate as to its 10% working interest in the drilling of a
proposed well on Block 21/22 in the central UK North Sea. The operator
was unable to acquire a commitment from the other partners by the
deadline and the lands have been relinquished. Exall considers the lands
prospective and is considering submitting a work program at future
licensing rounds.

Exall Energy Corporation is a Canadian junior energy company formed in
November, 2006 and engaged in the exploration and development of oil and
natural gas in Alberta, B.C., Texas and the U.K. North Sea.

Contacts:
Exall Energy Corporation
Frank S. Rebeyka
President and CEO
(403) 815-6637
Website: www.exall.com

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