Galena Capital Corp. has received the initial independent report on the previously announced Imperial Petroleum Inc. Oil Sands Recovery Demonstration.

The report included a comprehensive engineering examination, and lab analysis of the end products, which produced materials and results that were not in line with set expectations. Resulting from this are a series of questions and clarifications which Galena has requested from Imperial and which management expects responses to in short order, which will provide Galena with the information necessary to conclude this key component of it's due diligence.

Imperial's management has advised that the inconsistencies that occurred during testing were a result of variables in sand size and adherents, which they do not believe will occur in a production unit, where the feedstock sand will be uniform in nature and the production unit tuned to the correct specifications.

At this time, Galena has not ruled out proceeding with the announced joint venture but will monitor and update the market on the progress and development.