SOURCE: Silver Star Energy, Inc.

September 12, 2005 09:00 ET

Silver Star and Fidelis Suspend Amalgamation Discussions

LOS ANGELES, CA -- (MARKET WIRE) -- September 12, 2005 -- Silver Star Energy, Inc. (OTC BB: SVSE) today announces that management of the Company and Fidelis Energy, Inc. have collectively agreed to suspend the discussions as to the possible amalgamation of the two companies for a period of at least one year. Silver Star and Fidelis will continue to separately develop, along a parallel path, their own working interests in the North Franklin Project and the recently announced Kansas Play.

Management feels that with the recent increases in commodity prices, especially the revenue stream from the gas production in California, that Silver Star is adequately positioned to grow under its own corporate development plan. Silver Star is currently working towards securing a sizeable financing that will allow the full development of the North Franklin, Joarcam and Kansas projects.

ABOUT SILVER STAR ENERGY, INC.

The Company is committed to the exploration and extensive development of oil and natural gas reserves throughout western North America. Company management is focused on an acquisition program targeting high quality, low risk prospects provided via key strategic alliance partnerships.

Safe harbor for Forward-Looking Statements:

Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown 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. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Silver Star Energy, Inc. has little or no control.

ON BEHALF OF THE BOARD

Silver Star Energy, Inc.

Robert McIntosh-President

To find out more about Silver Star Energy, Inc. (OTC BB: SVSE), visit our website at www.silverstarenergy.com.

Contact Information

  • Investor Information:
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    Silver Star Energy, Inc.