SOURCE: Freedom Financial Holdings, Inc.

December 23, 2008 12:55 ET

Freedom Financial Holdings: "Heavy Oil" Technology Field Test Improves Oil Production

FORT WAYNE, IN--(Marketwire - December 23, 2008) - Freedom Financial Holdings, Inc. (PINKSHEETS: FDMF) CEO Brian Kistler announced today that the company has completed another field test in which the "Heavy Oil" technology improved oil production over 360%.

Kistler stated, "On 11-21-08, Freedom Financial Holdings, Inc. and Carmel Energy, Inc. began a field test in the north field of an active lease held by CRMY in Vernon County, Deerfield, Missouri. There were 14 wells that received a small amount of our technology. Prior to the treatment of these wells, the concentration of oil in the fluid being pumped each day averaged between 12%. After five weeks of daily monitoring, the concentration of oil in the fluid being pumped each day is now averaging in excess of 50% and the amount of oil recovered during the test was 364% higher than what would have been expected from prior averages."

Kistler further commented, "Bob Davis, Field Supervisor, for Carmel Energy, was a great help in making sure that the data was collected in an orderly manner and the wells were monitored by his crew. The results were much higher than I anticipated. I was hoping for a double, but am extremely pleased that we got the Grand Slam."

Bob Davis commented, "I am not sure what is in the technology that Freedom has, but in over 30 years of experience in the oil industry and having worked in this area for most of my life, this may be the most exciting development, for someone to finally be able to get the heavy oil to flow. What is most exciting is that prior to the treatment, we would have to heat and treat the oil in our tank batteries in order to get the water out of the oil. In samples taken of the oil once in the tanks, we found there to be around 1% water, and this is with no further treatment. I am truly convinced that Freedom has something special, and will be happy to recommend their technology."

"The current price of oil that is putting a squeeze on many of the companies working in heavy oil is actually creating urgency for our technology to be launched. During times like these, as in any business, overhead and productivity are of upmost importance. I could not have asked for a better environment to offer a potential solution of enhanced oil recovery. I am excited for the future as we all know the use of oil is not going to go away," concluded Kistler.

ABOUT FREEDOM FINANCIAL HOLDINGS, INC.

Freedom Financial Holdings, Inc. (FDMF) is a holding company with a focus on the identification of opportunities. The Company's objective is to acquire undervalued assets and/or initiate operations in underserved niches. Once established within the FDMF portfolio, the Holding Company will provide the support necessary to enable each of its subsidiaries to maximize their business opportunities.

ABOUT CARMEL ENERGY, INC.

Carmel Energy, Inc.'s (CMRY) primary business, since its inception, has been the development and operation of enhanced recovery oil properties. The company's mineral leasehold interests in Missouri are located along the Missouri -- Kansas border between Nevada, Mo. and Ft. Scott, Ks. The company has two formations: the Eastburn Formation and the Warner Formation. The Eastburn formation produces 21 to 23 gravity crude oil from depths ranging from 90 to 150 feet below the surface and the Warner Formation produces 16 to 20 gravity crude oil.

FORWARD-LOOKING STATEMENT

This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, the Company's ability to develop operations, the Company's ability to consummate and complete the acquisition, the Company's access to future capital, the successful integration of acquired companies, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, sales and other factors that may be identified from time to time in the Company's public announcements.

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