Aspen Group and Westchester to Begin drilling in North Dakota.

OKLAHOMA CITY -- Updates Saskatchewan drilling

Aspen Group Resources Corporation (TSX:ASR) ("Aspen" or the "Company") and Westchester Resources Inc. (TSX VENTURE:WSR) today announced that drilling operations on the initial well in North Dakota are scheduled to commence on January 23, 2005. The drilling location is approximately 5 miles south of the Eland field in Stark County.

The target is the Lodgepole Formation, which is productive throughout Stark County. The average Lodgepole completion has an estimated ultimate recovery (EUR) of approximately 1,000,000 barrels of oil and 500MMcf of gas. Target depth is approximately 9,700 feet and estimated costs to casing point are US$900,000. Completions are estimated at an additional US$400,000. Drilling and completion costs are split 50/50 between Aspen and Westchester.

As announced in November 2004, Aspen and Westchester, through their joint venture arrangement (the "Joint Venture") entered into a multi-well exploration agreement with Oil for America, Inc. ("OFA") in North Dakota. The initial agreement is for a four well package with Aspen acting as operator. OFA, in association with the Joint Venture, have leased lands for several additional locations in North Dakota. Availability of the rig for a second well has yet to be determined.

Saskatchewan

Aspen also announced that the Joint Venture has initiated a feasibility study on its Southern Saskatchewan property. To date, test wells have been drilled on the eastern and western edge of the 52,533-acre property to study the potential gas zones in the Colorado Group Formation. Both wells encountered gas shows in two zones and preliminary data indicates a potentially large gas-bearing reservoir. However, both wells encountered tight permeability within the target zones. The Joint Venture has initiated the feasibility study to determine how best to exploit this type of formation and determine the next drilling locations. The Joint Venture expects to have the study completed by the end of February. Additional properties in the area are currently being evaluated.

Aspen Group Resources Corporation is an independent oil and natural gas producer engaged in the acquisition, exploration, production and development of oil and natural gas properties in North America. Aspen's shares trade on The Toronto Stock Exchange under the symbol "ASR".

For more information on the Oil and Gas Industry in North Dakota, visit www.oilgas.nd.gov

Portions of this document include "forward-looking statements", which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this document are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from management's expectations and projections expressed in this document. Certain factors that can affect the Company's ability to achieve projected results are described in the Company's Annual Report on Form 20-F and other reports filed with the Securities and Exchange Commission. Such factors include, among others, production variances from expectations, uncertainties about estimates of reserves, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, environmental risks, drilling and operating risks, risks related to exploratory and developmental drilling, competition, government regulation, and the ability of the company to implement its business strategy.

Aspen Group Resources Corporation (TSX:ASR)

Aspen Group Resources Corporation (TSX:ASR)

Westchester Resources Inc. (TSX VENTURE:WSR)