Solimar Energy provide the following update on ongoing production testing operations at the Company's 100% owned Kreyenhagen shallow oil field redevelopment project in the San Joaquin Basin, California.

Initial, ongoing production testing confirms shallow Temblor heavy oil resource, encouraging unstimulated flow rates, and better than expected oil gravity and viscosity profiles.

Testing of the Temblor Sandstone at 850 feet depth in the 4-33 well achieved a stable rate of 4 bopd (40% water cut) following a maximum initial rate of 15 BOPD.

Sampled oil gravities of 14.6°-17.3° API with correspondingly lower than anticipated viscosity values increases opportunities for selective commercial primary production in conjunction with a more efficient steam enhanced production development.

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