On May 27, 2008 Mr. John F. Harsh resigned his position on the Board of Directors of Capital City Energy Group, Inc. (the "Company"), effective immediately. Mr. Harsh's resignation from the Board was solely for the purpose of creating a vacancy for the appointment of Mr. James E. Bishop. There were no known disagreements with Mr. Harsh on any matters relating to our operation, policies or practices.

On May 27, 2008, the Board of Directors of the Company appointed Mr. James E. Bishop to the Board to fill the position left vacant by the resignation of Mr. John F. Harsh. Mr. Bishop will fill this position until our next regularly scheduled shareholder meeting at which time he may stand for reelection by the shareholders who are permitted to vote in that election.

Mr. Bishop is an experienced and accomplished executive, the former CEO of two private energy services companies, and has extensive investment banking and investment experience in the field.

Currently, Mr. Bishop is the founder and sole member of WhiteStar Holdings, LLC and WhiteStar Properties, LLC as well as a Managing Director and Co-founder of WhiteStar Advisors, LLC which provides discretionary investment management for pension funds with a focus on energy, real estate and infrastructure investments throughout the United States, Bermuda, and the Caribbean. From 1994 to 2000, he was President of Janus Industries: 1994-2000, the successor in bankruptcy to United States Lines, Inc., which at the time of its bankruptcy in 1986, was one of the world's largest ocean shipping companies. He served as the President and CEO of two of its California- based oil and gas services companies, subsequently taking Janus Industries public and increasing its value more than 1,500%.