SOURCE: Silver Star Energy, Inc.

October 10, 2005 09:00 ET

Silver Star Energy Arranges Financing

LOS ANGELES, CA -- (MARKET WIRE) -- October 10, 2005 -- Silver Star Energy, Inc. (OTC BB: SVSE) is pleased to announce that it has received commitments from certain institutional investors to acquire senior secured convertible promissory notes and warrants of the Company for gross proceeds of $3,350,000.

The convertible notes can be converted to common shares on the basis of $0.315 per share. In addition to the notes, the Company has agreed to issue investor warrants for 100% of the common shares underlying the notes exercisable into common shares for 5 years at an exercise price of $0.63.

The Company has agreed to registration rights for the investors, although the securities to be issues are restricted and may not be sold or offered in the U.S. absent registration or an applicable exemption from registration requirements. The funds will be utilized to repay the Company's outstanding debenture to Cornell Capital LLP, for drilling costs and for working capital.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes or the warrants. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933, as amended.

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:
    1-888-803-SVSE (7873)
    Silver Star Energy, Inc.