Imperial Petroleum, Inc. provide the following update on its oil sands joint venture and business prospects:

As previously announced the Company's wholly-owned subsidiaries, Arrakis Oil Recovery, LLC and Imperial Chemical Company executed a joint venture agreement to complete development of the Company's initial oil sand project in Kentucky. The Company organized a new entity named MidAmerica Oil Sands, LLC to manage the joint venture on behalf of the Company and its joint venture partner, Peak Oil Sands LLC, a subsidiary of Peak Concepts, LLC. Peak has extensive experience in the development of oil and natural gas drilling ventures throughout the United States. Under the terms of the joint venture, Peak will provide $750,000 in development capital to complete the installation of facilities in Kentucky. The Company will provide a sublicense of its technology, access to SANDKLENE 950 chemical and its oil sand processing unit with a rated capacity at 1,000 barrels of oil per day. Peak and the Company will each own 50% of the joint venture proceeds from approximately 500 acres of oil sand acreage containing an estimated 10 million barrels of recoverable heavy oil, based on estimates compiled by public sources.

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