WellStar Energy Corp.
TSX VENTURE : WSE

WellStar Energy Corp.

October 21, 2005 11:47 ET

WellStar Energy Corp.: Research Engaged to Raise CDN $5 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 21, 2005) - Andrew H. Rees, President and CEO of WellStar Energy Corp. (the "Company"), (TSX VENTURE:WST) is pleased to announce that the Company has engaged Research Capital Corporation (the "Agent") as lead agent for a brokered private placement (the "Offering"), on a best efforts basis, of up to 5 million units of the Company at $1.00 per unit ("Unit") for gross proceeds of up to $5 million.

Each unit consists of one common share and one half of one non-transferable share purchase warrant. Each whole warrant will entitle the holder to acquire one additional share at an exercise price of $1.50 for a period of 12 months from the closing date.

If the Company's shares close at or above $2.00 per share for a period of 30 consecutive trading days then the warrant holders must exercise their warrants during the following 60-day period, or the warrants will otherwise expire.

In connection with the Offering, it is agreed that the Agent shall be paid a sales commission of 7.5% of the gross proceeds of the Offering. In addition, the Agent will be entitled to receive an option entitling it to purchase up to that number of common shares as is equal to 12% of the Units sold under the Offering for one year from the closing date, at a price of $1.00 per common share.

Net proceeds of the Offering will be used to fund the continued exploration and development of the Company's projects and for general working capital.

The private placement is subject to TSX Venture Exchange acceptance for filing and required regulatory approvals.

On Behalf of the Board of Directors

Andrew H. Rees, President, CEO

This News Release contains forward-looking statements regarding the timing and content of upcoming programs. Actual results may differ materially from those currently anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release, which was prepared by management.

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