Scout Exploration Inc.
OTC Bulletin Board : SCXN

Scout Exploration Inc.

June 26, 2008 15:26 ET

Scout Exploration Completes Acquisition of Alberta Oil/Gas Producer Kerrisdale Resources Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2008) - Scout Exploration Inc. (OTCBB:SCXN) is pleased to announce it has completed its acquisition of Kerrisdale Resources Ltd., a private Alberta oil and gas producing company. The Company completed an independent NI 51 101 compliant engineering report prior to the completion of the transaction.

The independent engineering report evaluated the Kerrisdale owned (48% WI) natural gas properties and assigned 76 Mboe of proved producing reserves with a discounted 10% before tax NPV value of nearly $1,000,000; which are concentrated in the southern portion of the massive Medicine Hat field of SE Alberta. These lands produce from the late Cretaceous aged Milk River Formation, which is comprised of a thick wedge of very fine-grained clastic material. An opportunity exists to add low risk, long-life incremental reserves by further down-space drilling of the Milk River and Medicine Hat Formations as commercial economics permit.

This first acquisition fits the Company's goal of acquiring fair to under-valued projects with long term production profiles. President, John Roozendaal states, "though the industry is experiencing record commodity price levels in oil and more recently gas, there remains tremendous opportunities for acquisitions and the Company is currently reviewing several which fit our growth objectives."

Kerrisdale Resources Ltd. is a private oil and gas company founded in 1994. The company has mineral rights and gas production in the Hilda, Atlee Buffalo, Jenner and Viking-Kinsella areas of S.E. Alberta and Gross Overriding Oil Royalties in S.E. Saskatchewan. Kerrisdale has interests in 4480 gross acres and 1238 net acres with gross production of 280 mcfd, of which Kerrisdale owns approximately 48%, and 0.7 bopd (47 boepd gross). The lands include 13 undrilled gas spacing units.

Brian Mahood P. Geol., P. Geo. A qualified person under NI 51 101, as approved the technical content of this news release.

On behalf of the Board;

Jason Walsh, Director

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