VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 12, 2011) -Sunridge Energy Corp. (TSX VENTURE:SRG) ("Sunridge" or the "Company") is pleased to announce it has signed a binding purchase agreement with Silver Peak Industries Ltd. ("Silver Peak") for the acquisition of certain hydrocarbon assets (the "Assets") located in Alberta (the "Transaction"). The Assets consist of a 100% interest in certain Crown leases, known as the Sunset Property (the "Property").

Key Point Summary

• Key acquisition for installation of a Cogen system to generate electricity
• Guarantees source of electricity for Sunridges 6-Phase Oil Heating* planned installations
• Proved gross reserves of 2.1 BCF and probable of 1.86 BCF**
• Trans-Canada natural gas tie-in on property

STRATEGIC ACQUISITION/ABOUT THE SUNSET PROPERTY

Sunridges business model includes using its 6-Phase Oil Heating proprietary technology to extract heavy oil at shallow depths in the Alberta Oil Sands. Electricity is the major cost incurred with this technology and therefore a guaranteed and reasonably priced supply of electricity is crucial for the Oil Sand applications. The Company intends to seek a Joint Venture partner to install a Cogen system on the Property to generate electricity for transport to various Fort McMurray oil sand sites for use in the planned 6-Phase Oil Heating installations. The Sunset property, with proved gross natural gas reserves of 2.10BCF and probable reserves of 1.86BCF, is located 340 kms north-west of Edmonton, Alberta. The property has a Trans-Canada natural gas tie-in point allowing the flexibility of transporting produced gas from anywhere in western Canada to the Sunset Cogen site for the generation of electricity. Sunridge will be able to generate power onto the grid system and take it off where required in the Fort McMurray area, adding to the planned oil extraction economics.

"By acquiring this key property Sunridge has moved one step closer to its ultimate goal of producing heavy oil at shallow depths in the Alberta Oil Sands and will continue to seek out new technologies and opportunities enabling Sunridge to compete in the business of heavy oil production in the largest heavy oil deposit in the world" states Dwayne Tyrkalo, President and CEO

*For further information about the technology please refer to Sunridges website at [ www.sunridge-energy.com ].

**Chapman Petroleum Engineering Ltd. August 1, 2011 reserve and economic evaluation report.

Silver Peak is a private Alberta corporation owned and controlled by the Company's President and Chief Executive Officer, Mr. Dwayne Tyrkalo. As a result the Transaction is a "related party transaction", as that term is defined pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101") and will be subject to the requirements of same. Accordingly, the Transaction is subject to the approval of the majority of the minority of Sunridge shareholders. The Transaction has been preliminarily approved by Sunridge's independent directors. The Company also obtained a reserve and economic evaluation of the Assets, as prepared by Chapman Petroleum Engineering Ltd., and dated August 1, 2011 (the "Report"), a copy of which will be filed on the Company's SEDAR profile. Per the Report, the net present value of the Assets, using forecast prices and costs, after income tax and discounted at 15% per year is $4,052,000. Sunridge cautions that estimated net present values do not represent fair market value.

In addition to the requirement to obtain minority approval for the Transaction, MI 61-101 also requires that Sunridge obtain a formal valuation of the Property, unless an exemption is available to Sunridge pursuant to MI 61-101. Sunridge intends to rely upon the formal valuation exemption available in MI 61- 101 to issuers not listed on certain specified stock exchanges. No formal valuations of the Property have been made in the last 24 months, to the knowledge of Sunridge, its Board of Directors, or Silver Peak.

To acquire the Assets, Sunridge has agree to pay a purchase price of $4,052,000 of which $1,013,000 shall be payable in cash and the balance of $3,039,000 shall be payable through the issuance of 15,994,736 common shares of the Company at a deemed price of $0.19 per share, representing the average closing price of the Sunridge shares on the TSX Venture Exchange ("TSX-V") for the 10 day period preceding this announcement.

Silver Peak Industries Ltd. (Dwayne Tyrkalo) currently holds, directly or indirectly, 3,250,000 common shares of Sunridge, representing 12.8% of the issued and fully diluted outstanding Sunridge shares, as well as options to acquire a further 250,000 common shares of Sunridge at an average price of $ 0.19 per share until 2016. Following completion of the Transaction, Silver Peak Industries Ltd. (Mr. Tyrkalo) will hold 46.4% of Sunridge's issued and fully diluted outstanding shares of 41,541,592, becoming a control person of Sunridge.

ABOUT SUNRIDGE

Sunridge is a junior oil and gas exploration and development company with production operations in the Province of Alberta. The recent acquisition of the 6-Phase Oil Heating proprietary technology gives Sunridge an unprecedented opportunity to extract extensive potential reserves of heavy oil (bitumen) at shallow depths in the Alberta Oil Sands. The Sunridge assets are structured to decrease operation costs, enhancing shareholder value.

On behalf of the board,

Jerry Bella, Chief Financial Officer

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Sunridge cautions that all forward looking statements are inherently uncertain and that

actual performance may be affected by a number of material factors, many of which are beyond Sunridge's control. Such factors include, among other things: risks and uncertainties relating to Sun ridge's ability to complete the drilling of the Test Well; earn a working interest in the Property and that there will be production from any wells drilled. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Sunridge undertakes no obligation to publicly update or revise forward-looking information.

This press release does not constitute an offer to sell or a solicitation to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended ("the U.S. Securities Act") or any state securities law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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