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Asdar Commences Harvester No. I-25 Re-Entry.

Business Editors/Technology Writers

VANCOUVER, British Columbia--(BUSINESS WIRE)--July 10, 2001

Asdar Group (XBET: OTC BB) reports that a service rig is in place and its re-entry program on the Harvester # I-25 well located in Bakersfield, California has commenced.

The five zones to be tested are contained in the Temblor, Vedder and Kreyenhagen formations, which are productive in the San Joaquin Valley. The interpretation of the original electric logs supports the testing of these zones. If any of the indicated zones achieve production it will be considered a new field discovery. The re-entry and testing of the well is expected to take approximately thirty days. The Company holds a 50% working interest in the Harvester Property.

LAK Ranch Update:

With respect to Asdar's pending legal proceedings against Derek Resources Corporation over the LAK Ranch Project in the State of Wyoming, Asdar's claims and lis pendens remain active and awaiting further court proceedings. In its suit, Asdar alleges that Derek openly and intentionally breached the parties' contract concerning development and development expenses on the LAK Ranch Project. Asdar also alleges that Derek owes Asdar a full accounting and that Derek's purported foreclosure activities concerning the LAK lands are illegal and in direct violation of the parties' agreement. Asdar continues to seek a declaration from the Wyoming court that Derek's claims and activities on the LAK Ranch Project are in breach of the parties' agreement. No trial date has been fixed at this time but discovery is ongoing and will continue.

Asdar alleges that Derek failed to comply with numerous specific provisions of the parties September 24, 1997 Option Agreement. Under the agreement, Derek could earn the right to acquire a 75% interest in the LAK Ranch lands. The Agreement included specific plans and a SAGD Pilot Plant project budget prepared by Dr. John Donnelly prior to September 24, 1997. The Agreement required Derek to adhere to Dr. Donnelly's 1997 plans and budget for the development, construction and operation of a SAGD Pilot Plant. The agreement also expressly required Derek to pay all costs of an initial six-month operation of the SAGD Pilot Plant to test the production potential of the Newcastle formation using SAGD technology. Asdar alleges that Derek intentionally failed to meet all of its contract requirements in this regard and then improperly tried to bill Asdar for excessive development and operation costs. Asdar also alleges that Derek has repeatedly failed to properly and fully respond to Asdar's requests for detailed information about Derek's activities at the LAK Ranch Project. It is also Asdar's position that Derek's purported lien on Asdar's interest in the LAK Ranch property is wrongful and illegal and of no effect. Derek's purported redemption date is of no significance.

--/s/ Robert Waters--- Robert Waters M.B.A., President

For further information please contact Investor Relations at: 1-888-488-6882

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical fact are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but no limited to, certain delays in testing and evaluation of products and other risks detailed from time to time in Asdar's filings with the Securities & Exchange Commission.

ASDAR Group Corporate Office

Administration Office 1225 E Sunset Drive, 1239 West Georgia Street, Suite 145 Suite 3004

Bellingham, WA 98226 - 3529 Vancouver, BC V6E 4R8 Tel: 1-888-488-6882 Website: www.asdargroup.com
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Date:Jul 10, 2001
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