Australian Government Awards Oil and Gas Exploration Permit to Discovery Geo Corporation.

DALLAS -- Discovery Geo Corporation ("Discovery Geo"), a privately held oil and gas exploration company located in Grapevine, Texas, announced today that on December 12, 2007, Discovery Geo was awarded Authority to Prospect 634P ("ATP-634P") by the Queensland Ministry of Mines, Queensland, Australia. ATP-634P is a permit that will allow Discovery Geo the right to explore for and produce oil, gas and other hydrocarbons located on the lands within the permit area. Discovery Geo made application for the permit in late August 1996 and was notified by the Queensland Department of Mines and Energy of Discovery Geo's selection as the "preferred explorer" on December 19, 1996. Notwithstanding such notification, the formal award of the Permit was indefinitely delayed as a result of native title claims. After negotiations and ultimately hearings before the Native Title Tribunal, the Federal Court of Australia denied the native title claims in February 2007 thereby clearing the way for Discovery Geo to be awarded the permit free and clear of any native title claims for the duration of the ATP.

ATP-634 covers lands located in the Cooper-Eromanga Basin in southwest Queensland, Australia, and comprises approximately 965,000 acres or 3,885 square kilometers. Approximately 2200 miles (3540 kilometers) of digital 2D seismic data of 1980's to early 1990's vintage has been acquired over portions of the permit area as well as other geological and geophysical data. Discovery has identified multiple geological structures on the acreage block which Discovery believes to be prospective and to warrant exploration, drilling and testing.

Historical oil and gas production from existing fields surrounding or nearby the Permit has exceeded 70 million barrels from 1980 through mid 1998. In addition, new activity in these fields is either underway or has been announced. This activity coupled with the exploration program that will be implemented by Discovery and its partners has the potential for mirroring the success that explorers on the South Australian side of the basin have experienced since 2003.

Mr. Bernett Martin, President of Discovery Geo, stated: "Discovery and its partners, Tamark Pty Ltd in Brisbane, Australia and CG Operating, Inc. in Austin, Texas are obviously excited about the award by the Queensland government and are confident that the potential for discovering oil and gas reserves is high. After over ten years, our work and patience has finally been rewarded. We plan to hit the ground running directly after the January 1, 2008 commencement date." Inquiries can be directed to Kevin Curtis of CG Operating, Inc. in Austin, Texas. Mr. Curtis can be reached via e-mail at [e-mail] or by phone at 512-330-0251.

Safe Harbor Statement

"Safe Harbor" statement under Private Securities Litigation Reform Act of 1995: Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Information contained herein contains "forward-looking statements" which can be identified by the use of forward-looking terminology such as "believe," "expect," "should," "up to," "approximately," "likely," or "anticipates" or the negative thereof or given that the future results covered by such forward looking statements will be achieved. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.