Kentucky USA Energy, Inc. Announces Joint Venture with 7921 Energy LLC

LONDON, Ky.--(Business Wire)--
Kentucky USA Energy, Inc. (the "Company") (OTCBB: KYUS), announced today that
the Company has entered into a joint venture ("JV") agreement with 7921 Energy
LLC ("7921") to develop natural gas and oil prospects in, above and below the
New Albany Shale formation on new acreage in Todd, Muhlenberg and Christian
counties in western Kentucky where the Company recently acquired farm-out rights
from Thomasson Petroleum Enterprises, Inc. ("TPE"). The additional farm-out
acreage is adjacent to the Company`s existing leasehold property and the wells
to be drilled under this JV agreement will utilize the Company`s field gathering
system that is currently in final phases of being connected to the Olive Grove
Gathering & Treatment Facility owned by Seminole Gas Company, LLC.

Under the terms of the JV agreement, 7921 will have the right to participate
with the Company in drilling and developing up to 40 wells on the newly acquired
farm-out acreage. Phase 1 under this JV agreement will consist of drilling and
completing ten (10) wells. Under the terms of the JV, 7921 will earn a 50%
working interest in each of the first ten wells, which translates to a 37.5% net
revenue interest, in exchange for providing the Company with $1,675,000 to
acquire its interest in the Phase 1 wells.

Andrew Golden, President of 7921 Energy stated, "We have known the management of
Kentucky USA for many years. That along with their proven track record in
western Kentucky makes this an outstanding opportunity for both companies."

"This is an exciting opportunity for us to work together with 7921 on a new
project in the New Albany Shale. In addition, on this new acreage from TPE, we
have the opportunity to develop and produce all horizons above and below the New
Albany Shale," said Steven Eversole, CEO of Kentucky USA Energy. "We feel that
this partnership will allow us to capitalize on our experience to grow our
portfolio of natural gas wells, to increase our reserves, and, we expect, to
bring these wells to production as early as this year. This is yet another step
to grow our Company and enhance shareholder value."

About Kentucky USA Energy, Inc.

Headquartered in London, KY, Kentucky USA Energy, Inc. engages in the
acquisition, exploration, and development of oil and natural gas resource
properties, with a primary focus on New Albany shale gas in the Illinois Basin
in western Kentucky. The Company is a growing, exploration stage independent
energy company with, it believes, the experience and technological expertise to
exploit the gas resources on its properties in the Illinois Basin`s New Albany
Shale.

More information about the Company may be found at www.kusaenergy.com.

Forward-Looking Statements

Certain statements in this news release, which are not historical facts, are
forward-looking statements. These statements are subject to risks and
uncertainties. Words such as "expects," "intends," "plans," "may," "could,"
"should," "anticipates," "likely," "believes" and words of similar import also
identify forward-looking statements. Forward-looking statements are based on
current facts and analyses and other information that are based on forecasts of
future results, estimates of amounts not yet determined and assumptions of
management. Actual results may differ materially from those currently
anticipated due to a number of factors which may be beyond the reasonable
control of Kentucky USA Energy, including, but not limited to, the availability
and pricing of additional capital to finance operations, including the drilling
of its initial gas wells, longer term drilling programs and additional leasehold
acquisitions, the viability of the shale gas fields in the Illinois Basin in
western Kentucky, the ability of Kentucky USA Energy to build and maintain a
successful operations infrastructure and to effectively drill and develop
producing wells, the successful negotiation and execution of cost-effective
third-party gas drilling, processing and distribution agreements, the continued
commitment of drill rig operators and future economic conditions and the
volatility and decreases in energy prices. Readers are urged not to place undue
reliance on the forward-looking statements, which speak only as of the date of
this release. We assume no obligation to update any forward-looking statements
in order to reflect any event or circumstance that may arise after the date of
this release. Additional information on risks and other factors that may affect
the business and financial results of Kentucky USA Energy can be found in the
filings of Kentucky USA Energy with the U.S. Securities and Exchange Commission.

Kentucky USA Energy, Inc.
Steven Eversole, CEO, 606-878-5987
or
Investor Relations
Corporate Evolutions, Inc.
Ph: 516-482-0155
Toll Free: 877-482-0155
info@corporateevolutions.com
www.corporateevolutions.com

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