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Exall Increases Production to 750 BOEPD Upon Completion of Mitsue Area Pipeline and Battery Facilities

CALGARY, ALBERTA--(Marketwire - Dec. 22, 2009) - Exall Energy Corporation (TSX:EE) ("Exall" or the "Company") is pleased to announce the completion of pipeline and battery facilities in its Marten Mountain, Mitsue core area and significantly increased production rates.

Highlights of the facilities completion include:

- Completion of an 11.5 kilometer 152 mm (6") pipeline
- Completion of oil and gas battery facilities and tie-in to the Enerchem,
 Slave Lake fractionation plant
- Current production is 750 boepd with anticipated additional increase of
 350 boepd upon approval of the project extension to include the 2-12 well
- Capacity to handle current and anticipated future production volumes
- Access construction to the next proposed winter drilling pad nearing
 completion

Marten Mountain Project

The Marten Mountain facilities are comprised of 11.5 kilometers of 152mm (6") pipeline, oil and gas battery facilities and a connection to the Enerchem International Slave Lake fractionation facility. Exall has entered into an agreement with Enerchem, who will be purchasing the oil and gas from the Marten Mountain property to be utilized in their refining facility.

The pipeline and battery facilities will allow Exall to conserve solution gas and proceed to GPP production rates with the 14-1 well. Current total production is 750 boepd net to Exall. The capacity of the pipeline and battery facilities is adequate for current production as well as the anticipated production from the winter drilling program.

The Company is nearing completion of the 8-7 pad access road and lease for the drilling of up to three wells into the "A" sand channel during the first quarter of 2010. The first well is expected to spud prior to year-end. Two additional wells are planned for the "B" sand. Drilling these new wells is subject to the Company obtaining the necessary financing.

About Exall

Exall Energy Corporation is a junior oil and gas company active in its business of oil and gas exploration, development and production from its properties in Alberta, British Columbia and Texas. Exall is currently developing a new oil discovery at Marten Mountain in north-central Alberta.

The Company currently has 45,921,227 common shares outstanding. The Company's common shares are listed on the Toronto Stock Exchange under the trading symbol EE.

Reader Advisory

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions, including those relating to results of operations and financial condition, capital spending, financing sources, commodity prices and costs of production. By their nature, forward-looking statements are subject to numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, actual results may differ materially from those predicted. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such factors include fluctuating commodity prices, capital spending and costs of production, and other factors described in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at [ www.sedar.com ]. Such forward-looking statements are made as at the date of this news release, and the Company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.

For the purposes of calculating unit costs, natural gas has been converted to a barrel of oil equivalent (boe) using 6,000 cubic feet equal to one barrel (6:1), unless otherwise stated. The boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method and does not represent a value equivalency; therefore boe may be misleading if used in isolation. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.