Fairstar Explorations Inc.

Fairstar Explorations Inc.

August 02, 2005 09:50 ET

Fairstar Receives Conditional Approval for Merger with Western Energy Corporation and Listing on the TSX

MONTREAL, QUEBEC--(CCNMatthews - Aug. 2, 2005) - Fairstar Explorations Inc. ("Fairstar") (TSX:FFR) is pleased to announce that it has received conditional approval from the Toronto Stock Exchange ("TSX") for the previously announced merger with Western Energy Corporation ("Western") of Calgary Alberta, to form FairWest Energy Corporation ("FairWest") and for the listing of FairWest's shares on the TSX, subject to approval by the shareholders of Fairstar at a special meeting to be held on August 15, 2005.

Should the merger with Western be approved, shareholders of Fairstar will own 13.96% of the outstanding shares of FairWest, an oil and gas exploration company. Pursuant to the terms of the merger, Fairstar shareholders will receive one common share of FairWest for every 6.7226 common shares of Fairstar.

FairWest will be engaged in the exploration for, and the acquisition, development and production of oil and natural gas reserves in the Provinces of Alberta and Saskatchewan. FairWest is currently producing approximately 525 barrels of oil equivalent per day and has a large inventory of exploration and development properties.

Larry Nachshen, Chairman of Fairstar stated: "We are very pleased that we are close to completing the final stage of the two step reorganization of the Company. The end result will be that shareholders of Fairstar will now own shares in two highly prospective companies, one focused on gold exploration (American Bonanza Gold Corp.) and the other concentrating on oil and gas exploration and development in Western Canada."

Contact Information

  • Fairstar Explorations Inc.
    Larry Nachshen
    Fairstar Explorations Inc.
    George Tooley
    Chief Financial Officer
    (514) 695-8080
    (514) 695-8011 (FAX)