EMERALD BAY ENERGY TO DRILL FIRST TWO WELLS WITH HUGOCELLR PARTNERSHIP

Emerald Bay Energy Inc. (TSX Venture: EBY) (the “Company” or “Emerald Bay”) is pleased to announce that the Company has secured a rig to consecutively drill two new wells on the F. Poenitz lease this September. These are the first two wells to be drilled with the Company’s new partner HugoCellR Ltd. (“Hugo”).

Commented Shelby D. Beattie, President and CEO, “We are very excited to begin our partnership with Hugo. Under terms of the partnership, Hugo will pay 100% of the costs to earn a 75% interest in the wells. Emerald Bay will earn a 25% interest in the wells at no cost to the Company. Opportunities like this are a way for the Company to grow our asset base in a cost effective way as we continue to pursue these types of partnerships in the future.”

ABOUT EMERALD BAY

Emerald Bay Energy Inc. (EBY) is an energy company with oil producing properties in southwest Texas as well as non-operated oil and natural gas interests in Central Alberta, Canada. EBY is the operator of the Wooden Horse, Nash Creek, and Cottonwood Creek Projects in Guadalupe County, Texas, where the Company currently now owns a 50.00% working interest in those projects. The Company also owns 75% of Production Resources Inc., a South Texas oil company.

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For further information, please contact: Emerald Bay President, Shelby D. Beattie, (403) 262-6000, info@ebyinc.com, www.ebyinc.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.