August 7, 2009 – Marking a significant step for the future development of the province’s oil and gas resources, Ed Martin, President and CEO of Nalcor Energy and Jim Keating, Vice President of Nalcor Energy – Oil and Gas announced its operatorship in three exploration permits in the Parsons Pond area of the Great Northern Peninsula in western Newfoundland.

“Nalcor Energy’s exploration program on the province’s west coast will provide access to new, valuable information and further assess the petroleum potential in this area,” said Mr. Martin. “Improved prospectivity resulting from increased exploration activity may also entice other proponents to come into the area stimulating additional exploration activity and helping advance the west coast basin for future development.”

Nalcor Energy has acquired an average of 67 per cent gross working interest in three exploration permits on the west coast of the Northern Peninsula. “Nalcor Energy has acquired equity in three permits from Leprechaun Resources,” explained Mr. Keating.

“This acquisition of working interest is valued at $559,000 for work commitments performed to date by Leprechaun Resources. In addition, Nalcor will assume its proportionate share of Leprechaun Resources work expenditure commitments to the Provincial Government. This refundable deposit of approximately $580,000 will be returned to Nalcor by the Provincial Government once the exploration drilling is completed.”

In addition to Nalcor Energy, there are four other project partners with varying holdings in the three permits: Leprechaun Resources Ltd.; Deer Lake Oil and Gas Inc.; Investcan Energy Corporation; and Vulcan Minerals Inc.

“Nalcor believes in the oil and gas potential of western Newfoundland and by partnering with companies active in the area we will bring together the resources and capability to mount a comprehensive exploration campaign to assess the oil and gas potential of this area,” added Martin. “As a company, we have an aggressive plan for growth, and this new acquisition fits with our long