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Message: NR purchase add'l land leases Marlborne area...new big debt $200b



Fairborne Energy Ltd. ("Fairborne" or the "Company") (TSX:FEL

) is pleased to announce that it has

entered into an agreement to purchase a significant land position with producing assets and facilities (the

“Assets”) in the Company’s core Marlboro/Pine Creek area. The acquisition will have an effective date of

July 1, 2010 and is expected to close on or about September 9, 2010 for a cash purchase price, at closing, of

approximately $71.5 million, subject to closing adjustments. The completion of the transaction is subject to

customary regulatory approvals and other conditions. The acquisition will be funded through Fairborne’s

existing credit facility.

Transaction Highlights:

The Assets to be acquired by Fairborne doubles the Company’s position in a significant new gas play and

exploration trend in the Company’s core Marlboro/Pine Creek area of West Central Alberta.

The acquisition has the following assets and attributes:

167 gross sections (91.4 net sections) of land, which includes 71.8 net sections of undeveloped

Wilrich rights;

Significant development opportunities on the Assets with an identified inventory of more than 200

potential Wilrich horizontal locations on the acquired lands;

Over 30 potential gross Notikewin/Falher horizontal locations;

Significant number of vertical locations with multi zone potential;

More than 100 workover locations in various reservoirs identified in existing well bores;

Strategic infrastructure including over 150 km of operated pipelines and a 55.1% working interest in

a 14 MMcf/d (licensed to 42 MMcf/d) gas plant;

Reserves estimated by GLJ Petroleum Consultants Ltd., effective as of June 30, 2010, of 2.7 MMboe

total proved and 5.1 MMboe total proved plus probable; and

Current production of approximately 980 boe/d of mature, shallow decline production (83% gas).

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