Excelsior Energy Limited has completed an updated independent evaluation of bitumen resources on Excelsior's Hangingstone property, near Fort McMurray, Alberta. The report was prepared to provide an independent assessment of the results of a 26 well core drilling program at Hangingstone completed in March, 2008. Excelsior has a 75% working interest in 39 contiguous sections of oil sands rights in the Hangingstone Asset.

The resource estimates were prepared by McDaniel & Associates Consultants Limited (McDaniel). The McDaniel report was prepared using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook and in accordance with National Instrument 51-101. The effective date of the evaluation is July 1, 2008. The Report incorporates the McDaniel price deck as at July 1, 2008 in the forecast price scenario.

The Report represents the first evaluation of the Hangingstone Asset prepared by McDaniel. Readers are cautioned that the Report cannot be compared to the Hangingstone evaluation prepared as at December 31, 2007 because of differences in methodology.

"The discipline of the McDaniel methodology supports the resource base" commented Robert Bailey, COO and Vice President, Engineering of Excelsior, "The report confirms the commercial potential of the Hangingstone Asset and provides a strong base for continued delineation. Excelsior is working towards a 10,000 bopd SAGD demonstration project application at Hangingstone in Q2, 2009."