Capital City Energy Group, Inc. (“CETG”) is aggressively moving forward with the execution of its business plan; the Triad model. Several promising organic and acquisition opportunities are presenting themselves as the company prepares to become a public company. CETG believes that today is an exciting time and an excellent business climate to create a substantial fully integrated public energy company!

The genesis of CETG, and the first leg of the Triad is the Company’s Fund Management division. The company is expanding its product line and distribution channels. The retail fund model is being upgraded to provide superior tax benefits to its investors, combined with higher quality drilling operators and programs with lower risk in proven geological basins onshore in the United States. A significant inventory of quality drilling prospects is being assembled for the benefit of the retail funds and the newly established Institutional Fund initiative. We are in discussions with high profile energy companies for joint venture opportunities to optimize drilling, production and transportation segments of the business.

The second leg of the Triad, our Principal Investment division has been active in investing the Company’s capital in properties and assets that have excellent return on investments. The success of our principal activity has resulted in a letter of intent from the Bank of Oklahoma’s Energy Lending Group, which recently approved a $10,000,000 senior secured credit facility to Capital City Energy Group, Inc. As such, we have earmarked our first $600,000 drilling program investment from this credit line to build reserves, production and cash flow for the Company. As our asset base increases, so will our ability to leverage larger investment opportunities to further add value to the Company and for our shareholders.

The third leg of the Triad involves the Merger & Acquisition opportunities that are being evaluated to strategically position the Company for its aggressive growth. We intend to expand both organically as well as through accretive acquisitions of energy companies. Potential candidates are oil & gas operators, a drilling contractors, and well servicing companies providing critical functions to bring the wells into the production phase. These acquisitions would provide Capital City Energy Group with an integrated base of operations allowing the Company to steward all phases of leasing, permitting, drilling, perforating, fracture stimulating and pipeline to bring oil and natural gas to production.

To help manage these initiatives, the Company has been adding experienced staff to assist in taking us to the next level. Dan Coffee recently joined us as Chief Operating Officer and Director of Acquisitions. Dan brings nearly 30 years of experience in the energy industry, most recently completing 10 years as Manager of Business Development for Superior Well Services, Ltd. Dan was integral to building Superior from 26 employees to over 1300 people in 18 service facilities throughout the country. Another valued addition to our Company is John Harsh, who joined us from Ferris Baker Watts, Inc. John has 26 years of experience in securities sales and brings a keen eye for oil and natural gas deals, particularly in the Appalachian basin in the northeastern United States. John’s energy contacts are already paying dividends to the Company. Finally, coming on board as our Chief Financial Officer is Dave Beule. Dave is also the CEO of Appalachian Basin CPAs, and he has a long history of experience as a Certified Public Accountant serving the oil and gas industry. Dave’s accounting firm has dealt with over 50 oil and natural gas entities, and his firm’s staff has a combined 100 years of tax and auditing experience.

Capital City Energy Group is also proud to announce that we have moved into new and expanded office facilities. Located on the north side of Columbus, our new offices include state of the art video conference capabilities in addition to upgraded computer and phone systems to handle our rapidly expanding business needs. We also are situated with convenient access to Port Columbus to receive clients and visitors from out of town.

From all of us here at Capital City Energy Group, know that we are 100% committed towards our shared goal, to responsibly build and grow shareholder equity.