SOURCE: City Capital Corp.

September 08, 2006 15:30 ET

UPDATE: City Capital Expands Into Oil and Gas Production Through Acquisition of Montreal Beneficial, Now Goshen Energy Resources, Inc.

MENDOTA HEIGHTS, MN -- (MARKET WIRE) -- September 8, 2006 -- Today City Capital Corporation (OTCBB: CCCN) announced the acquisition of Montreal Beneficial, Inc., a Dallas-based group with over 100 years experience in oil and gas operations. A Nevada corporation in the name of Goshen Energy Resources, Inc. "Goshen," was created for this transaction. City Capital owns 600,000 shares and Montreal Beneficial owns 400,000 shares of Goshen. Goshen will engage in the buying, selling & drilling of oil & gas properties in South Louisiana, and mineral leases in the Northern portion of the Ft. Worth Basin Barnett Shale Play.

Through this acquisition, Goshen, owns 25 percent working interest in a West Delta gas producing offshore platform in Louisiana. It plans to purchase the remaining interest from the current owners.

In commenting on the acquisition, Terry Wilson, President & CEO of Montreal Beneficial, stated, "We were impressed with City Capital's powerful and aggressive approach towards fulfilling consumer demands in the economy, whether in affordable housing or otherwise. This joining of forces will allow us to combine the financial and management strength of City Capital, with our team's years of oil and gas industry experience, to take full advantage of current and future energy needs."

Ephren Taylor, CEO and Director of City Capital Corporation (OTCBB: CCCN), added, "Montreal Beneficial is an impressive group that brings over 100 years experience in the oil and gas arena. The formation of Goshen with an experienced team once again shows our strategy of combing profitable investments, capable management and creative capital."

Likewise, Harvey Lynch, the Business Development Consultant that engineered the marriage of the two companies, recognized the dynamics of City Capital, a Business Development Company, and Montreal Beneficial. "From 30 years in oil & gas industry capital management, as well as operational management, I feel the resources of City Capital are ideally suited to allow Goshen to act on many of the opportunities Montreal Beneficial has in place."

Montreal Beneficial, Inc., together with its wholly owned subsidiary Matador Energy, LLC was formed in September of 2000 to acquire existing oil and gas properties in South Louisiana and mineral leases in the Northern portion of the Ft. Worth Basin Barnett Shale Play.

City Capital Corporation (OTCBB: CCCN) is a Business Development Company (BDC) authorized by Section 54(a) of the Investment Company Act of 1940 to make loans and equity investments in developing business enterprises. City Capital currently manages the day-to-day development process for the Kansas City (Missouri) Historic Jazz District.

This release contains "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties, including those described in the Company's annual report on Form 10-KSB for the year ended December 31, 2005, that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, whether as a result of new information, future events or otherwise. The Company's plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, its ability to consummate, and the timing of, acquisitions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. Therefore, there can be no assurance that any forward-looking statement will prove to be accurate. The Company makes no undertaking to update such forward-looking statements.

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