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                           Gulfstar Energy Corporation

                               Phone: 800-820-1632



January 19, 2011


                                  PRESS RELEASE



Gulfstar Energy Signs Letter of Intent for $90 Million Senior Credit Facility


Denver,  Colorado - (January 19, 2011).  Gulfstar Energy  Corporation  announced
today that the company has signed a Letter of Intent  (LOI) with Wright  Capital
Corporation for a $90 million dollar Senior Credit Facility.

The purpose of the funding will be used to complete the  Timberline  Acquisition
and for further infrastructure  completion and development on the Illinois Basin
project in Western Kentucky.

Robert McCann,  CEO of Gulfstar Energy stated,  "The depth and experience Wright
Capital offers  Gulfstar as a financial and  experienced  oil and gas partner is
invaluable.  Their 40 year history in funding oil and gas  companies  aligns our
mutual interest with our corporate  strategy to  consistently  expand our asset,
production, and earnings growth."

About the Company

Gulfstar  Energy  Corporation  is an independent  energy company  engaged in the
acquisition and development of oil and gas assets in the United States. Gulfstar
currently  owns and operates 20 miles of pipeline  infrastructure  on its 10,000
acre lease in the Illinois Basin.






Safe Harbor Statement


This press release contains  forward-looking  statements that are subject to the
safe  harbors  created  under  the  Securities  Act of 1933  and the  Securities
Exchange Act of 1934. We use words such as "anticipate,"  "believe," "continue,"
"could,"  "estimate,"  "expect,"  "goal,"  "intend,"  "may," "plan,"  "project,"
"seek,"  "should,"  "target,"  "will,"  "would,"  variations  of such  words and
similar  expressions  to  identify  forward-looking   statements.   Readers  are
cautioned that actual results could differ  materially  from those  expressed in
any  forward-looking  statements.  Factors  that could cause  actual  results to
differ  include:  the ability of Gulfstar to successfully  integrate  Timberline
operations and  employees;  the ability to realize  anticipated  benefits of the
proposed   acquisition,   including   the   expectation   of   greater   revenue
opportunities,  operating  efficiencies and cost savings;  the ability to ensure
continued  performance  and market growth of  Timberline's  business;  continued
turmoil in global financial markets and economies;  the availability and cost of
credit;  the ability to successfully  develop,  introduce,  and sell product and
enhancements;   changes  in   relationships   with  key  customers,   suppliers,
distributors,  resellers, and others as a result of the acquisition; the ability
of  the  Company  to  locate  and  retain  replacement  executive  officers  and
directors,  and other factors  affecting  the oil and gas and energy  industries
generally.  In addition,  please refer to the risk factors contained in Gulfstar
Energy Corporation's SEC filings available at www.sec.gov,  including Gulfstar's
most  recent  Annual  Report on Form 10-K and  Quarterly  Reports  on Form 10-Q.
Readers  are  cautioned  not to  place  undue  reliance  on any  forward-looking
statements,  which speak only as of the date on which they are made. The Company
undertakes no obligation to update or revise any forward-looking  statements for
any reason