Mart Resources, Inc.
TSX VENTURE : MMT

Mart Resources, Inc.

July 12, 2005 09:00 ET

Mart Resources, Inc. Signs Agreement for Participation in Umusadege Field

CALGARY, ALBERTA--(CCNMatthews - July 12, 2005) -

Not for distribution to United States newswire services or for dissemination in the United States.

Mart Resources, Inc. (TSX VENTURE:MMT) ("Mart"), is pleased to announce that it has entered into a legally binding Heads of Agreement with Midwestern Oil and Gas Ltd. ("Midwestern") that outlines and specifies the commercial terms under which Mart will be granted the right to participate in the development of the Umusadage Field, Nigeria. The Umusadage Field is an on-shore oil and gas field located in Nigeria's Niger Delta region that was recently awarded to Midwestern under the Nigerian Government's marginal field allocation round. This field is one of 24 proven oil and gas fields that have been granted to indigenous companies under the allocation program. These oil fields have been reported as having the potential of adding in excess of 150,000 barrels to Nigeria's daily national oil production. Mart is presently negotiating agreements to provide technical and financial services for a share of production on a number of other of these proven fields.

Three wells were drilled and cased in the Umusadage Field between 1974 and 1980. The N2 well, which was the only well tested, flowed 2,654 barrels of oil per day. Under the terms of the Heads of Agreement with Midwestern, Mart shall be responsible for paying 100% of the costs required for joint operations on the Umusadage Field. In return, Mart shall be entitled to receive an allocation of crude oil and natural gas produced from the field under a production sharing arrangement with Midwestern. The Heads of Agreement will shortly be followed by signature of a Finance, Services, and Production Sharing Agreement.

Mart is currently assessing the availability and costs of contracting a rig to re-enter the N2 well on the Umusadage Field sometime in the next few months in order to test and re-complete the well. Additional development plans could include re-completion of the Umusadage #1 well, and the drilling of one or two new wells.

Mart is an independent international energy company focused on developing oil, gas and power projects in West Africa.

Certain statements in this News Release constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

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

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