Marksmen Resources Ltd.

Marksmen Resources Ltd.

October 26, 2005 14:46 ET

Marksmen Operations Update

COMOX, BRITISH COLUMBIA--(CCNMatthews - Oct. 26, 2005) - Marksmen Resources Ltd. (TSX VENTURE:MA) ("Marksmen") is pleased to announce that after successfully closing the Plan of Arrangement with Signet Minerals Inc. on October 11, 2005, Marksmen is now a pure junior oil and gas company positioned to take advantage of the current buoyant market in the oil and gas sector in order to reach the next level of growth.

In addition to the current inventory of drilling prospects discussed below, management is presently in discussions with several companies with respect to adding new projects to its inventory by way of farmin opportunities and potential joint ventures.

Marksmen's current capital budget for 2006 is forecast to be approximately $2,850,000 for the program outlined below, of which approximately 80% will be directed to low to medium risked oil development, 15% to higher risked exploratory drilling and the remainder for facilities. Funding for the current capital program, for the most part will come from cash flow, working capital, and Marksmen's bank line.

Based on Marksmen's current inventory of drilling prospects and depending on the level of drilling success attained, management has estimated that a significant increase in production from the current production level of 45 boe/d could be achieved. Up to 16 locations have been budgeted for drilling in 2006 covering three key prospect areas.

At Nottingham, Saskatchewan, where Marksmen has a 20% working interest in approximately 1,280 acres of land with proven producing and probable booked reserves, up to six (6) horizontal well locations have been identified. Immediate plans are to spud a dual leg horizontal well prior to year end.

Marksmen has an average 24% working interest in 320 acres of land at Innes West in southeast Saskatchewan and an option to earn an additional 1,280 acres. Recently, the operator completed the Frobisher formation in a vertical well located at 7- 30 -7-11W2. The initial production rate of this well has been approximately 50 bbls/d. Subject to further appraisal of the 7-30 well performance, up to three (3) additional horizontal wells and two (2) vertical wells could be drilled on this prospect.

Marksmen's other key potential growth property is at Riviere located just west of Edmonton. This project, which is comprised of approximately 6,240 gross acres, is prospective for multi-zone oil and natural gas. Recently, Marksmen participated as to its 16% working interest in the first of up to six (6) potential wells on this prospect. The well located at 1-2-55-26W4 was cased as a potential dual zone gas well. Marksmen is also considering increasing its working interest in this project to approximately 50% in all future wells.

In addition to the aforementioned activity, at Namao South near St. Albert, Alberta, the surface lease has finally been obtained after several delays that were experienced throughout the year. Marksmen has an opportunity to earn a 24.5% working interest by participating in a well that is scheduled to be drilled prior to year end. This well is targeting multi-zone oil and natural gas.

With the recent changes in management and with completion of the mineral property spinout, management believes that Marksmen is well positioned to pursue opportunities that will allow Marksmen to operate and to grow its production, reserves, and cash flow over the next year.

On behalf of the Board of Directors

"Peter Malenica"


President & CEO, Director

Statements in this press release may contain forward-looking statements. Except for statements of historical fact, all statements in this press release - including, without limitation, statements regarding future plans and objectives of the Company - are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Basic Shares: 14,910,781

Fully Diluted Shares: 18,291,084

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information