WellStar Announces Signing Letter of Intent for Alberta Acquisition

Calgary, Alberta--(Newsfile Corp. - January 25, 2016) - WELLSTAR ENERGY CORP. (TSXV: WSE) ("WellStar", or the "Company") announced today that it has signed a letter of intent ("LOI") to acquire an undivided 50% working interest in producing lands in west-central Alberta by issuance of shares and warrants.

The acquisition contemplates the Company issuing the vendor 750,000 shares at a deemed value of $0.10 per WellStar share and granting 500,000 share purchase warrants exercisable at a price of $0.05 per share for a 48 months from closing. The effective date of the transaction will be October 1, 2015 with the expected closing on or before February 15, 2016.

The acquisition will include three wells on three quarter sections in the Rosevear Field northeast of Edson, Alberta. The wells are offset by new production from the Cardium formation drilled in 2015. One of the three acquisition wells is currently on production at approximately net 4 barrels per day to the Company.

WellStar's President & CEO Andrew H. Rees stated "Management is pleased to execute an LOI for a share based acquisition at a valuation significantly above the current share price and at favourable acquisition metrics. Although production is small, it provides positive cash flow in the current depressed oil price environment. Our technical team believes there is significant upside potential for drilling Cardium and Second White Speck wells on the leases."

The acquisition is subject to TSX Venture Exchange approval.

For further information please contact Andrew H Rees at (403) 919-7900.

ON BEHALF OF THE BOARD

(signed) "Andrew H. Rees"
Andrew H. Rees
President

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.

THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESS RELEASE PRESENT THE EXPECTATIONS OF THE COMPANY AS OF THE DATE HEREOF AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.