Vast Completes Production Sharing Contract in the Kurdistan Region-Iraq

CALGARY, ALBERTA, May 20 (MARKET WIRE) --
Vast Exploration Inc. ("Vast" or the "Company") (TSX VENTURE: VST) is
pleased to announce that with its consortium partner Niko Resources Ltd.
(TSX: NKO), as operator, it has entered into a Production Sharing
Contract ("PSC") with the Kurdistan Regional Government - Iraq ("KRG" or
"Government") for the exploration, development and production of
petroleum resources in the 846 square kilometre Qara Dagh Block in the
Sulaymaniya Governorate of the Federal Region of Kurdistan - Iraq.

To see the 'Kurdistan License Map' please visit the following link:
http://media3.marketwire.com/docs/klm.pdf.

The Company has been involved in a competitive bidding process and
advanced negotiations with the KRG over the past eight months. The final
terms were agreed in principle late last year, subject to KRG approving
the operator. Under the final agreement reached with the KRG, Niko
Resources Ltd. shall act as operator for the block. Niko Resources Ltd.,
with a market capitalization in excess of $4.5 Billion, was selected by
the Company as the operating partner due to its considerable
international experience, including activities in India, Thailand and
Bangladesh.

According to the terms of the PSC, the consortium has a 60% net
participating interest, not subject to further dilution by the KRG. Vast
and Niko Resources Ltd. each hold a 27% net participation interest in the
block, and Groundstar Resources Ltd., the third member of the consortium
will have a minority net participation interest of 6%. The Government
will have a direct 20% interest which will be carried exclusively by the
consortium. The remaining 20% is reserved by the Government to be
assigned to a third party or parties within a period of eight months,
with the requirement to pay back their share of petroleum costs incurred
by the consortium.

The obligations under the PSC include a onetime signature bonus and
initial capacity building bonus paid to the Government within a period of
30 days from the execution date of the contract. Annual contributions to
personnel, training, environmental and technological funds established by
the Government, as well as further community support contributions are to
be paid over a period of 15 months to assist with infrastructure projects
in the region. The consortium will also be responsible for paying its
proportionate share of certain production bonuses in the case of
commercial discovery. The remaining minimum work program obligation
represents an exploration commitment, expected to commence in the near
future, which includes the acquisition, processing and interpretation of
a minimum of 300 kilometres of 2D seismic data and drilling of one well
during the first exploration period. The Company expects to spend in
excess of $40 million over the next 3 years on the block. During the next
90 days, the Company intends to evaluate its financing options to raise
approximately $30 million, of which, it anticipates approximately $10
million will be spent on capital expenditures in 2008.

Mr. Stan Bharti, Chairman of the board of directors, commented "this
transaction is a significant milestone for our company and its
shareholders. We have been evaluating opportunities globally for Vast,
and we are delighted to get involved in a Region with relatively low
geological risk, reasonable commercial terms and clearly established
transparent contractual model and legal framework. The Qara Dagh Block
offers excellent potential for a major oil discovery, and it strongly
positions the Company to pursue further opportunities in the region. We
look forward to an aggressive exploration campaign."

Preliminary geological studies including surface mapping and subsurface
stratigraphical analysis have been initiated by the Company. An
independent evaluator engaged by the Company has reviewed neighbouring
oil and gas accumulations with recoverable reserves in the range of 30 -
600 million barrels oil equivalent based on previously released public
information.

Mr. Edward Sampson, Chairman of Niko Resources Ltd., commented "we are
very pleased to partner with Vast on this world-class opportunity."

Conference Call

The Company will host a conference call to update shareholders on
Wednesday May 21st, at 11:00 a.m. E.T. Messrs. Stan Bharti, Ahmed Said
and General (ret'd) Jay Garner will moderate the call.

Date: Wednesday, May 21st Time: 11:00 a.m. E.T.
Local Callers: 416-695-6320 North American Callers: 1-888-818-4097
International Callers: +1-416-695-6320

Kurdistan Region

The Kurdistan Region is a semi-autonomous area located in the Federal
Republic of Iraq, adjacent to Turkey, Iran and Syria. The KRG is a
secular, democratically elected body that exercises executive power
within the region. Due to historical political issues this area has had
very limited petroleum exploration and exploitation, despite being
located in a prolific basin with giant discoveries such as the Kirkuk
Field.

To view the 'Discovered Fields Map' please visit the following link:
http://media3.marketwire.com/docs/dfm.pdf.

The Kurdistan region passed its Oil & Gas Law in August 2007, and since
then the KRG has signed contracts with various international oil
companies including Addax Petroleum, OMV, MOL, Hunt Oil, KNOC (Korea),
Perenco, Hillwood, Norbest (TNK Affiliate), Reliance Industries and
others. For further information on the KRG, please visit www.krg.org.

The Company requires TSX Venture Exchange approval in connection with its
acquisition of its interest in the Block.

About Vast Exploration Inc.

Vast Exploration Inc. is an independent oil and gas exploration and
production company actively pursuing crude oil and natural gas
opportunities. Vast currently has production operations in the Province
of Alberta, Canada.

Regulatory Statements

This press release contains "forward looking information" within the
meaning of applicable Canadian securities legislation. Forward looking
information includes, but is not limited to, statements with respect to
the future financial or operating performance of the Company, the
prospective geology of the block, the terms of acquisition, the impact of
the acquisition on Vast and receipt of all necessary approvals, including
regulatory approvals, for the acquisition. Generally, forward looking
information can be identified by the use of forward-looking terminology
such as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or "does
not anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved". Forward-looking
information is subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of the Company to be materially different
from those expressed or implied by such forward-looking information,
including but not limited to: general business, economic, competitive,
geopolitical and social uncertainties; the actual results of exploration
activities; acquisition risks; regulatory risks; risks inherent in
foreign operations; and other risks of the oil and gas industry. Although
the Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue reliance
on forward looking information. The Company does not undertake to update
any forward-looking information, except in accordance with applicable
securities laws.

TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.

Contacts:
Vast Exploration Inc.
Ahmed S. Said
President and CEO
(403) 263-3000
Email: asaid@vastexploration.com

Vast Exploration Inc.
Stan Bharti
Chairman
(416) 861-5876
Email: info@vastexploration.com
Website: www.vastexploration.com

Copyright 2008, Market Wire, All rights reserved.

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