Fellows Energy Ltd. (OTCBB: FLWE)("Fellows") is pleased to announce that it has entered into an agreement, subject to due diligence, to acquire Grupo Minero Aconcagua SA (“GMA”), a private Argentine company in advanced stages of negotiation to acquire rights to geothermal and wind energy projects in central and southern Argentina. The geothermal project being targeted has been the subject of a previous feasibility study, with initial evaluations at the 30 MW level.

“We are updating internally the previous feasibility study to obtain a current estimate of the revenue potential of the project as our first step to move forward with the project,” said Fellows’ Vice-President, Operations, Steve Prince. “In addition to the revenue associated with generating power at the 30 MW level, we also expect that the project will qualify for over $6 million per year in 'carbon bonds' and national premiums,” he said.

The acquisition of GMA gives Fellows the capability to negotiate and acquire a number of alternative energy projects in the country, and marks a significant turning point in the restructuring and resurgence of the Fellows. Terms of the transaction call for success payments to be made to the GMA shareholders in relation to the generating capacity of the rights obtained in the first year.

The Company believes that a number of financial incentives and an emerging, favorable market and attractive financing terms for geothermal, wind and other alternative energy projects will provide a solid basis to move forward with these projects. Although the Company is now actively refocusing its efforts to take advantage of the alternative energy segment of the industry, it also continues in its efforts to obtain joint venture financing on its oil and gas exploration projects in the western United States to enable it to eliminate its convertible debt and strengthen its balance sheet. While those joint venture financing efforts continue, efforts to pursue the Dolar Energy acquisition, previously announced, have not been successful, and the Company is discontinuing that transaction.

“We are excited to acquire an entity that is well positioned to negotiate and acquire geothermal and wind energy projects throughout Argentina,” said CEO George S. Young. “We plan to pay down our debts completely in the near future by restructuring our asset base and selling interests in some of our early-stage oil and gas exploration properties. Acquiring rights to advanced-stage wind and geothermal projects will greatly assist us in building shareholder value without additional drilling or putting significant amounts of capital at risk, and enable us to grow the Company while we improve our balance sheet and capital structure. We believe that the time is opportune to enter into the alternative energy market, and we have the contacts to do so quite effectively.”

About Fellows Energy

Fellows is an early-stage oil and gas company with emphasis in the Rocky Mountain Region using traditional and new technologies, and is also now focused on acquisitions in the alternative energy market. For additional information please go to www.fellowsenergy.com.

Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as probable, possible and potential, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-KSB, File No. 0-33321, available from us at 370 Interlocken Boulevard, Suite 400, Broomfield, Colorado 80021. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

Examples of such disclosures would be statements regarding "probable," "possible," or "recoverable" reserves among others.

Management hopes these transactions will bring additional value to the shareholders of Fellows Energy. There is no guarantee that the projects that Fellows has recently acquired will increase the value of its shares of common stock, or that Fellows will acquire rights to explore and operate any other such projects, or that in the event that it acquires rights to explore and operate other such projects, that these actions will be successful or increase the value of Fellows’ common stock.

This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. There are many factors that could cause our expectations and beliefs about our plans to acquire additional exploration or production properties, our plans to drill or our drilling results to fail to materialize: competition for new acquisitions; availability of capital; unfavorable geologic conditions; the complexity of coal bed methane exploration and production; and prevailing prices for natural gas and general regional economic conditions. Fellows assumes no obligation to update the information contained in this press release.

Fellows Energy Ltd.
George S. Young or Shane Reeves, 303-926-4415
or
Investor & Public Relations
Charles A. Moskowitz, 781-826-8882
cm@focuspartners.com