Petrostar Signs $1.3 Million Cash Deal

VICTORIA, Sept. 30 /CNW Telbec/ - Petrostar Petroleum Corp. (TSX-V: PEP) ("Petrostar" or "the Company") is pleased to announce that the Company has accepted an offer to purchase its Maidstone and Lashburn heavy oil fields near Lloydminster Saskatchewan from Pavillion Energy Corp of Richmond BC. The offer is for both properties being sold as a package for $1,300,000.00 CAD. The closing date for this deal is October 15, 2010.

By divesting the Company's interest in these two fields, it will allow Petrostar to focus its efforts on the development of the Company's Bakken properties in SE Sakatchewan and SW Manitoba where management sees the most future potential. Proceeds of the sale will be used to further develop current holdings in the Bakken properties; look for other possible land acquisition or farm-in opportunities; and retire debt.

Further to the Company's news release dated September 7, 2010, the Company has now entered into the due diligence phase with CCMB. This phase is the final step in procuring the $5,000,000 previously announced and subsequent additional funding of $15,000,000 upon a successful drill program.  Petrostar has created a wholly owned subsidiary, Bakken Oil Resources Inc., to facilitate this joint venture. Twenty-three quarter-sections of leased land in Moosomin and Kirkella areas will be rolled into the venture, and when the funding closes, $5,000,000 will be contributed by CCMB for a 50% interest in Bakken Oil ($4.6M debenture and $400K equity interest).  It is anticipated that funding will occur within the next 60 days.

Mr. Bruce Scafe said "This sale will allow the Company to further develop its current interest on the Bakken Lands and will allow the Company to look at other possible opportunities in the area. As management, our job is to maximize the potential value for shareholders and we feel the Bakken is where the Company should be focused to achieve greater potential at this time."

About Petrostar Petroleum Corp.
Petrostar Petroleum is a Canadian-based oil and gas producer committed to providing sustainable growth and value to its shareholders through progressive production of heavy and medium oil properties. The long-term objective of management is to aggressively seek  properties with high potential that can be advanced with minimum expenditures. The policy of the Company is to lower shareholders' risk exposure at various stages of exploration by entering into joint ventures with third parties or acquiring projects that the Company can operate as the sole owner-operator.

Neither 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.

For further information:

Renmark Financial Communications Inc.
Barry Mire: [email protected]
Arash Shahi: [email protected]
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