TrueStar Petroleum Corporation
TSX VENTURE : TPC

TrueStar Petroleum Corporation

September 09, 2005 15:22 ET

TrueStar Petroleum Corporation: Litigation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 9, 2005) - TrueStar Petroleum Corporation (TSX VENTURE:TPC) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Litigation Matters Initiated by the Company

TrueStar Petroleum Corporation; Trinity Americas, Inc.; Trinity Barnett, LLC; Charles A. Kohlhaas; and Dwain M. Immel vs Optima Services International Ltd., p/k/a Optima International Trust Company Limited, The Balaton Group, Inc., and Robert J. Kubbernus. The Company advises that on August 22, 2005, a lawsuit was filed by the Company, two of its subsidiaries, Trinity Americas, Inc. and Trinity Barnett LLC and two of its directors, Charles A. Kohlhaas and Dwain A. Immel, in the State District Court of Harris County, Texas, 157th Judicial District, against Optima Services International Ltd., p/k/a Optima International Trust Company Limited, The Balaton Group, Inc., and Robert J. Kubbernus. The Company is also bringing suit against M. Carol Coale, Frederick Bryson Farrill, and John S. Burns.

The lawsuit seeks damages for breach of contract, business disparagement, breach of fiduciary duty and statutory fraud.

Litigation Matters Initiated by Chamberlain and Rhea

Robert E. Chamberlain, Jr. And J. W. Rhea, IV vs Optima International Trust Company, Ltd., Optima Services International, Ltd., Optima Partners, Inc., Balaton Group, Inc., Robert Kubbernus, Martin Doane, Bill Calsbeck, James Spence, Bryson Farrill, and Others. The Company advises that, on May 31, 2005, Robert E. Chamberlain, Jr., its CEO, CFO and director, and J. W. Rhea, IV, its former President, COO and director, filed a lawsuit against Optima International Trust Company, Ltd., Optima Services International, Ltd., Optima Partners, Inc., Balaton Group, Inc., Robert Kubbernus, Martin Doane, Bill Calsbeck, James Spence, Bryson Farrill, and others alleging, among other things, theft, breach of fiduciary duty, fraud/negligent misrepresentation, conspiracy, securities fraud, and breach of contract.

Litigation Matters Initiated by Optima and Related Parties

Management and the Board of Directors believe Optima and related parties have filed the following flurry of lawsuits and petitions to frustrate management and undermine the Company's ability to achieve its business objectives. Management and the Board of Directors intend to defend vigorously against each and every one of these claims. Robert E. Chamberlain, Jr., CEO, CFO, and director, noted "The Company is fortunate to have adequate and able legal counsel to deal with these matters in Canada and the US. Management will not be distracted from implementing the Company's growth and development strategy, and we are confident in our expected success".

Optima Services International Ltd. (IBC Number 430629; Registration Date February 5, 2001), formerly Optima International Trust Company Limited, through June 9, 2004, was struck off of the Corporate Registry of the British Virgin Islands on November 8, 2004. Optima Partners Limited (IBC Number 388258; Registration Date May 18, 2000) was also struck off of the Corporate Registry of the British Virgin Islands on November 1, 2002.

The BVI Companies Act states where a Company has been struck off the Registry it cannot carry on its business or deal with its assets or commence or defend legal proceedings.

Optima Services International, Ltd. and Balaton Group Inc. vs TrueStar Petroleum Corporation. July 8, 2005; Ontario Superior Court of Justice.

This lawsuit has been discontinued.

Optima Services International, Ltd. and Balaton Group Inc. vs TrueStar Petroleum Corporation; Trinity Americas, Inc.; and Trinity Barnett LLC. July 21, 2005; Ontario Superior Court of Justice.

The Company has instructed its Ontario counsel to bring a motion to stay this action on jurisdictional grounds. Management and the Board of Directors intend to defend this claim vigorously. Management currently believes it will be successful in staying the action or defending against the claim. Amounts pertaining to most of the claim are presented on the balance sheet of the Company under Provision for Litigation.

Nicole Wolfe vs TrueStar Petroleum Corporation. July 29, 2005; Ontario Superior Court of Justice.

Management and the Board of Directors intend to defend this claim vigorously against an alleged former employee who provides certain services to Optima and related entities.

Optima Services International, Ltd. vs TrueStar Petroleum Corporation; Trinity Americas, Inc.; Trinity Barnett, LLC; Charles A. Kohlhaas; Dwain M. Immel; Robert E. Chamberlain, Jr.; J. W. Rhea, IV; and Daniel Fox-Davies. August 22, 2005; Supreme Court of British Columbia.

The Company intends to defend against this petition vigorously. This petition was commenced by a minor shareholder who states in the Petition that they hold only approximately 1.45% of the capital of the Company.

M. Carol Coale and Bryson Farrill vs TrueStar Petroleum Corporation. August 25, 2005; Supreme Court of British Columbia.

Management and the Board of Directors intend to defend this claim vigorously against two former directors of TrueStar Petroleum Corporation. Mr. Farrill is Chairman of The Balaton Group, Inc., a company owned and controlled by Robert Kubbernus. Mr. Farrill is also the trustee for a blind trust that was set up to control 100% of Optima's interest in certain Convertible Debentures purchased from Mr. Chase Hoffman, a former director of the Company.

Optima Services International Ltd and Timothy Anastakis vs TrueStar Petroleum Corporation. August 23, 2005; Supreme Court of British Columbia.

Management and the Board of Directors intend to defend this claim vigorously.

BGC Consultants Limited vs TrueStar Petroleum Corporation. August 24, 2005; Supreme Court of British Columbia.

Management and the Board of Directors intend to defend this claim vigorously against BGC Consultants Limited, a company owned by Bill Calsbeck. Mr. Calsbeck is a Vice President of The Balaton Group, Inc., a company owned and controlled by Robert Kubbernus.

About TrueStar

The Company's focus is on the efficient development of hydrocarbons in North and Central America while maintaining high standards of environmental responsibility. TrueStar now has 27 producing natural gas wells (19 vertical and 8 horizontal). Working interest partners involved in the Company's various acreage holdings include publicly-listed Devon Energy (NYSE:DVN) and Carrizo Oil &Gas (NASDAQ NM:CRZO), along with other privately-held entities. TrueStar Petroleum Corporation is an oil and gas exploration and development company.

ON BEHALF OF THE BOARD OF DIRECTORS

Charles A. Kohlhaas, Chairman of the Board


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