BELLAMONT EXPLORATION LTD. RELEASES SECOND QUARTER 2010 FINANCIAL AND
OPERATING RESULTS

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, Aug. 26 /CNW/ - Bellamont Exploration Ltd. (the "Corporation" or "Bellamont") (TSXV:BMX.A) (TSXV:BMX.B) is pleased to provide a summary of its financial and operating results for the three months ended June 30, 2010.

SECOND QUARTER 2010 HIGHLIGHTS AND SUBSEQUENT EVENTS

During the second quarter, Bellamont achieved the following:

    
    -   Increased average production to 2,515 Boe/d (37% oil and natural gas
        liquids), an increase of 45% from the first quarter of 2010 and 190%
        from the same period in 2009 and in excess of guidance of 2400 boe/d;
    -   Incurred $9.6 million of capital expenditures as follows:
        -  Completed 3 (2.25 net) wells resulting in 2 (1.25 net) oil wells
           and 1 (1) net abandoned well
        -  Tied in 2 (1.5 net) wells which were successfully drilled in the
           first quarter of 2010;
        -  Acquired its partner's interest in the Grande Prairie Dunvegan C
           light oil pool;
        -  Increased funds generated from operations of $4.03 million, a 923%
           increase from the same period in 2009;
    -   Generated cash flow per basic and diluted share of $0.03, an increase
        of 271% from the same period in 2009;
    -   Operating netback totalled $22.11, an increase of 38% from the same
        period in 2009; and;
    -   Increased it's revolving operating demand loan by $10.5 million to
        $42.5 million
    

Subsequent to the second quarter:

    
    -   Bellamont successfully drilled and completed a second well in its
        prolific Grande Prairie Montney oil pool. This pool is now producing
        approximately 1500 Boe/d (~400 oil and natural gas liquids) net to
        Bellamont as compared to approximately 670 Boe/d (~162 bbl/d of oil
        and liquids) at the time of acquisition of Standard Energy Inc. in
        February 2010.
    

FINANCIAL AND OPERATING HIGHLIGHTS

The Corporation will file its unaudited financial statements and related management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2010, with Canadian securities regulatory authorities on SEDAR. Copies of these documents may be accessed electronically on SEDAR at www.sedar.com or at www.bellamont.com. Certain selected financial and operational information for the three months ended June 30, 2010, March 31, 2010 and June 30, 2009 are set out below and should be read in conjunction with Bellamont's financial statements and MD&A.

    
    -------------------------------------------------------------------------
                                               June 30,  March 31,   June 30,
    Three Months Ended                            2010       2010       2009
    -------------------------------------------------------------------------
    FINANCIAL ($000s, except per share)
    Petroleum and natural gas sales              9,512      7,503      2,365
    Funds generated from operations(1)           4,032      3,394        394
      Per basic share                             0.03       0.03       0.01
    Net loss                                    (1,887)      (783)    (1,546)
      Per share basic and diluted                (0.01)     (0.01)     (0.03)
    Net capital expenditures(2)                  9,624     63,260      1,702
    Net debt(1)/(working capital surplus)       20,814     15,171       (847)
    -------------------------------------------------------------------------
    OPERATING
    Production
      Crude Oil (Bbls per day)                     773        617        174
      Natural gas (Mcf per day)                  9,491      6,297      4,058
      Natural gas liquids (Bbls per day)           160         65         16
      Total (Boe per day)                        2,515      1,731        867
    Average realized prices
      Crude Oil ($ per Bbl)                      71.08      76.57      61.09
      Natural gas ($ per Mcf)                     4.15       5.08       3.56
      Natural gas liquids ($ per Bbl)            63.85      64.70      56.74
      Average realized price ($ per Boe)         41.57      48.17      29.99
    Netbacks(1) ($ per Boe)
      Petroleum and natural gas sales            41.57      48.17      29.99
      Royalties                                  (5.19)     (8.43)     (0.70)
      Operating expenses                        (13.37)    (11.90)    (12.04)
      Transportation expenses                    (0.90)     (1.13)     (1.27)
      Operating netback                          22.11      26.71      15.98
    Undeveloped land holdings
      Gross acres                               91,286     97,123     65,878
      Net acres                                 61,775     64,712     40,903
      Average working interest                     68%        67%        62%
    -------------------------------------------------------------------------
    COMMON SHARES (000s)
    Shares outstanding, end of period
      Class A shares                           140,788    140,788     44,649
      Class B shares                             1,012      1,012      1,012
    Weighted average shares
      Basic and diluted(3)                     150,908    123,409     54,769
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) Funds generated from operations, Net debt and Netbacks as presented
        do not have any standardized meaning prescribed by Canadian GAAP and
        therefore may not be comparable with the calculation of similar
        measures for other entities. Please refer to the Non-GAAP Measures
        section of the MD&A for more details.
    (2) Total net capital expenditures, including acquisitions.
    (3) For the three months ended June 30, 2010 the Class B shares are
        converted at the minimum Class A share price of $1.00 and added to
        the Class A shares. Thus each Class B share converted to 10 Class A
        shares for the basic and diluted share calculation.
    

AREA UPDATES

Grande Prairie Montney Oil Pool

Bellamont has now drilled, completed and equipped its second successful horizontal step-out well (100% working interest) at 3-30-71-4W6 ("3-30") in the Grande Prairie Montney I Oil pool, which was acquired by Bellamont in its corporate acquisition of Standard Energy Inc. in February of 2010. In total, there are now five horizontal wells producing in this pool.

The first well drilled by Bellamont in this pool (100% working interest) at 3-25-71-4W6 ("3-25") was placed on production at the end of April 2010 and to date has produced at an average of approximately 110 bbl/d of light oil and natural gas liquids together with another 1.6 mmcf/d of natural gas for a combined total of 380 Boe/d. After more than three months of production, the well is still producing at a restricted rate of 360 Boe/d. The 3-30 was recently placed on production on August 14, 2010 and is flowing at an initial rate superior to that of all the other wells in the pool, exceeding management's expectations. As such, Bellamont expects the 3-30 well's production profile to meet or exceed that of the 3-25 well.

Bellamont has a total of six more drilling locations in this pool, all 100% working interest. Based on the performance of the existing wells in this pool, management estimates these locations could add up to 2,400 boe/d of productive capacity net to Bellamont. As a result, the Corporation expects this property to be a solid cash flow, reserves and production growth asset for the next several years.

Grande Prairie Dunvegan Oil Pool

In the second quarter, Bellamont closed a transaction to acquire its partner's interest in the Grand Prairie Dunvegan C light oil pool for $6.8 million. This transaction increased Bellamont's interest in the pool from 50% to 100%. The pool currently produces approximately 80 bbl/d of light oil (36 degree API) net to Bellamont from four vertical wells, realizing a superior operating netback of approximately $43/Boe in the second quarter.

Bellamont is in the midst of a two well horizontal development drilling program to further exploit the pool. The first well has been drilled and cased as a potential oil well. The second well is currently being drilled. Bellamont expects to complete both wells via multistage fracture stimulations in the fall. The vertical wells in this pool produced at an average initial rate of approximately 80 bbl/d of oil and are still producing at a low decline with average rate of approximately 20 bbl/d per well after three years of production. Management expects that successful horizontal wells could produce at initial rates in excess of 150 bbl/d per well and will ultimately be more efficient in draining the pool than vertical wells. The cost to drill, complete and equip these wells is estimated to be $1.8 million per well, which offers excellent economics on every key metric. The Corporation has an additional five horizontal drilling locations in this pool.

Based on core analysis, Bellamont believes the Dunvegan C pool is a likely candidate for water flood which could ultimately lead to recovery factors of up to 35.0% of the original oil in place.

Grimshaw Montney Oil Pool

The Corporation now has five wells (one vertical and four horizontals) on production in its Montney oil pool discovery at Grimshaw. The Corporation realized excellent operating netbacks of approximately $37/Boe at this property in Q2. The Corporation recently placed on production its fourth horizontal oil well (100% working interest) which it drilled in the first quarter. Since August 1, 2010 this new well has produced at an average rate of approximately 70 Bbl/d day of oil. The Corporation has partially completed its gathering system for a multi-well battery which will centralize production operations for all its producing wells. Bellamont plans to drill 2 (1.7 net) additional low risk in-fill wells in this oil pool by year end and has a total of 16 (12 net) further locations in this pool, based on 4 wells per section spacing. Bellamont is planning on shooting a 12 square mile three dimensional seismic program over the pool in the fourth quarter of 2010 to optimize further development of the pool in 2011.

ELECTION OF NEW DIRECTOR - MR. IAN FERGUSSON

At its June 3, 2010 annual meeting of shareholders, Mr. Ian Fergusson was elected as a new director of Bellamont. Mr. Fergusson is Senior Vice President of Camcor Partners Inc. ("Camcor"). Camcor is a private equity fund manager specializing in equity investments in the oil and gas exploration and production industry. Mr. Fergusson received his Bachelor of Commerce Degree (Honors) in 1993 from the University of Calgary with a double major in finance and accounting. Subsequently, he received his Chartered Accountant designation in 1996 and his Chartered Financial Analyst designation in 2001.

COMMODITY RISK MANAGEMNT PROGRAM

The Corporation has initiated a risk management program with the National Bank, the Corporation's banker. Accordingly, Bellamont has hedged 300 barrels a day of production as follows (note: all figures are based on WTI in Canadian funds):

    
        i)    100 Bbl/d; August 2010 - October 2010 fixed price swap; $81.84;
        ii)   100 Bbl/d; August 2010 - January 2011, costless collar - $75.00
              floor; $87.90 ceiling
        iii)  100 Bbl/d; August 2010 - April 2011, costless collar - $70.00
              floor; $93.10 ceiling
    

OUTLOOK

Bellamont has assembled a balanced, low risk drilling inventory of development projects in numerous high impact plays concentrated in the Peace River Arch of Alberta. Bellamont has maintained a disciplined approach and a conservative balance sheet. At the end of second quarter, Bellamont's net debt stood at $20.8 million, approximately 1.3X debt to cash flow (Q2 annualized). The Corporation is well positioned to significantly grow production, reserves and cash flow on a per share basis over the next 18 to 24 months, funded by its cash flow and available bank lines. Bellamont is on track to meet or possibly exceed its corporate guidance for the year of 2,300 boe/d average and 2,750 boe/d exit. Bellamont's capital budget for the second half of 2010 is $15.3 million and is weighted towards oil projects. The Corporation expects to reach 50% oil and natural gas liquids weighting in 2011.

Since the acquisition of Standard Energy Inc. in February of 2010, Bellamont has increased production from the acquired properties from approximately 1,000 boe/d to 1,900 boe/d on capital expenditures of approximately $10.5 million. The Standard transaction has been accretive on all key metrics and is representative of the type of opportunity the Corporation selectively targets and aggressively pursues.

Bellamont's strategy is to build a low risk reserve, production and cash flow base through acquiring, developing and exploring primarily in the Peace River Arch area of Alberta. Bellamont has a strong technically focused management team that internally generates and develops high quality large resource based prospects. The Company has a drilling inventory of 90 wells (71 net). In addition, the Company has compiled an undeveloped land inventory of 91,286 gross acres (61,775 net), of which 71,601 gross acres (52,753 net) is located in the Peace River Arch area of Alberta.

Bellamont is an oil and gas company focused on the acquisition, exploration, development and production of oil and natural gas in western Canada and trades on the TSX Venture Exchange under the symbols "BMX.A" and "BMX.B". The Corporation has 140,787,690 Class A shares and 1,012,000 Class B shares outstanding.

FORWARD LOOKING STATEMENTS

This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. More particularly, this press release contains statements concerning Bellamont's future production estimates, expansion of oil and gas property interests, exploration and development drilling and capital expenditures. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors that could affect Bellamont's operations or financial results are included in Bellamont's reports on file with Canadian securities regulatory authorities.

The forward-looking statements or information contained in this news release are made as of the date hereof and Bellamont undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

OIL AND GAS ADVISORY

This press release contains disclosure expressed as "Boe/d". All oil and natural gas equivalency volumes have been derived using the ratio of six thousand cubic feet of natural gas to one barrel of oil. Equivalency measures may be misleading, particularly if used in isolation. A conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Not for distribution to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities law.

%SEDAR: 00024373E

SOURCE BELLAMONT EXPLORATION LTD.

For further information: For further information: Steve Moran, President and Chief Executive Officer, (403) 802-1355; or Tavis Carlson, Vice President Finance and Chief Financial Officer, (403) 802-0117, 1208, 250 - 2nd Street S.W., Calgary, Alberta, T2T 5S8, Email: info@bellamont.com, www.bellamont.com

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