Fellows Energy Ltd. (OTCBB: FLWE)("Fellows") is pleased to announce that it has entered into an agreement, subject to due diligence, to acquire two advanced geothermal projects in the Andes Region of Argentina from Geothermia Andina, SA, a private Argentine entity. The two new projects are in addition to the Company’s recent announcement relating to 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 two projects now under option include the Valle Del Cura and the Tuzgle-Tocomar projects, both entering the pre-feasibility stage and hosting an estimated combined 300 MW of electric power generating potential. Fellows has targeted a third project in Argentina which has been the subject of a feasibility study covering the first 30 MW of an estimated 100 MW of generating potential. The three projects combined would host an estimated 400 MW of potential. The Company is also working toward the completion of its acquisition of GMA.

Although the precise terms of the purchase options have not been disclosed at this time for competitive reasons, the purchase options call for nominal up-front payments and a graduated option payment schedule over several years. This structure gives the Company adequate time to evaluate the value of the projects and obtain joint venture or other funding for development and purchase capital.

In spite of the current conditions in the financial markets in general, 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. In addition to the revenue associated with generating power, it is also expected that the projects will qualify for ¨carbon bonds¨ and national premiums that will further enhance the cash flow potential of the 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.

“The signing of option agreements to acquire these two projects is a big step forward in bringing value into the Company and restructuring our asset base,” said Fellows CEO, George Young. “Acquiring the rights to these two advanced-stage projects will greatly assist us in building shareholder value and enable us to grow the Company while we improve our balance sheet and capital structure. We plan to move forward quickly with preliminary project evaluation and assessment of financing alternatives through partnerships or joint venture arrangements.”

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, 303-926-4415
or
Investor & Public Relations
Charles A. Moskowitz, 781-826-8882
cm@focuspartners.com