Daleco Resources Corporation - Ostara Corporation Transaction Closes.

WEST CHESTER, Pa. -- Daleco Resources Corporation (OTC.BB:DLOV):

Dov Amir, Chairman of the Board and Chief Executive Officer, announced today that Daleco's previously reported transaction involving the sales of its information technology holdings to Ostara Corporation (OTC.PS:OTRC) (P.K.A. PSNet Communications, Inc.) ("Ostara") has closed. Under the December 1, 2004, Asset Purchase & Sales Agreement ("PSA") the Company received 3,000,000 common shares and warrants to acquire an additional 15,000,000 share of Ostara common stock In exchange for its I-Squared and I-Top technologies.

Gary Novinskie, President of Daleco, stated that Daleco is please that Ostara was able to consummate the transaction within the targeted time frame because it allowed Daleco to unlock the value imbedded in its information technology assets and to begin participating in the stock value growth opportunities underlying Ostara's business strategies. He noted that Daleco's planned special dividend distribution to its common stock shareholders of approximately two million fifty thousand (2,050,000) of the three million (3,000,000) common shares received, plus a proportionate number of warrants received from Ostara has taken place. The distribution, according to Mr. Novinskie, is designed to allow the Daleco stockholders the opportunity to directly participate in the value proposition and growth opportunities provided by Ostara. . The Daleco distribution involved issuing one share of Ostara common stock for each 14 shares of Daleco common stock held as of January 6, 2005, the record date, and short term warrant rights to purchase (5) addition shares of Ostara common for each share issued.

Beau H. Kelley, Chief Operating Officer of Ostara stated that transaction with Daleco represents a unique opportunity for Ostara not only to acquire compatible technologies but also to expand its shareholder base and market exposure. He noted that Ostara has significantly expanded its data mining "crawl" and storage applications and wireless communication technology holdings and operations over the past several months. In addition, Ostara's efforts to introduce its information technologies within the medical sector offer significant revenue growth potential. As a whole, Ostara's focus on providing technology-based solutions to growing sectors provides a strong platform for the company's future within the domestic and international market place.

Daleco Resources Corporation is an international asset and technology aggregation and monetization company with operating subsidiaries active in oil and gas, minerals, timber and technology within the continental United States and internationally.

Ostara Corporation is a developer and manager of emerging technologies focusing on data base management and wireless communication applications and hardware both domestically and internationally.

Safe Harbor for Forward-Looking Statements: Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in the future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product price volatility, product demand, market competition, risk inherent in the Company's domestic and international operations, imprecision in estimating product reserves and the Company's ability to replace and expand its holdings.