Brownstone Ventures Inc. provides the following update on Colombia operations.

Canaguaro Block, Llanos Basin Brownstone has been advised by the operator of the Canaguay-1 well on the Canaguaro Block in the Llanos Basin of Colombia, Quetzal Energy Ltd. (TSXV: 'QEI') ("Quetzal"), that the Saxon #132 rig has been erected on the Canaguay-1 well and is expected to begin completion and testing operations shortly. Drilling operations commenced on June 3, 2010 and the well was successfully drilled to a final total depth of 15,850 feet on August 4, 2010. Well logs indicate in excess of 100 feet of potential net oil pay in several oil zones including the Mirador, Barco, Gacheta and Une - with the Mirador zone containing the majority of the indicated oil pay. Completion and testing operations will begin with the Une / Lower Sandstone and testing of all potential zones is expected to take approximately 4 to 6 weeks. Brownstone has a 25% working interest in the Canaguaro Block.

Block 27, Llanos Basin Brownstone has also been advised by the operator, Quetzal, that the processing of 220 square kilometers of 3-D seismic data on Block LLA-27 in the Llanos Basin of Colombia has been completed. It is expected that the interpretation and mapping of the LLA-27 3-D seismic will be completed in the fourth quarter of 2010. Brownstone has a 50% paying interest before payout, a 45.5% revenue interest before payout, and a 35% working interest after payout.

Term Loan Brownstone also announces that it has entered into a non-binding agreement with 2256629 Ontario Ltd., a private company, to provide Brownstone with a proposed $3,000,000 in financing in the form of a secured loan. The loan would be for a one-year term (subject to prepayment), bear interest at a rate of 12% p.a. and be secured by a charge over the company's personal property. As consideration for the loan, the company would also pay to the lender a cash bonus equal to 10% of the principal amount of the loan and a facility fee equal to 1% of the principal amount of the loan.

Closing of the transaction is subject to the satisfaction of certain conditions, including the execution of a definitive loan agreement and ancillary documents. Proceeds from the loan would be used for working capital purposes.

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