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Kingsmen Resources Ltd. press release

King Energy Inc. Announces First Quarter Results

TSXV - TSX Venture Exchange · Silver · Gold · Lead · Zinc · Copper · Antimony · Bismuth · Indium · Arsenic · Canada

CALGARY, Aug. 23 /CNW/ - King Energy Inc. ("King) (TSXV:KNG) is pleased to present its financial results for the three month period ended June 30, 2005.

Highlights:

First quarter production averaged 165 boepd, an increase of 77% over the first quarter of 2004. Production was 4% lower than in the prior quarter ended March 31, 2005 due to temporary operational difficulties with one well, which have now been resolved.

Cash flow from operations in the first quarter totaled $295,587 compared to $20,183 for the three months ended June 30, 2004

Net income for the three month period ended June 30, 2005 was $161,280 compared to a loss of $127,190 for the quarter ended June 30, 2004.

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FINANCE Three Months Ended June 30 ($, all values) 2005 2004

Petroleum & Natural Gas Sales 759,079 362,340 Other Income 36,802 -

Total Revenue 795,881 362,340

Cash flow from operations 295,587 20,183 per share - basic 0.05 0.00 per share - diluted 0.04 0.00

Net Income (loss) 161,280 (127,190) per share - basic 0.03 (0.02) per share - diluted 0.02 (0.02)

OPERATIONS Three Months Ended June 30 2005 2004

Daily production - boe 165 93

Average price - $/boe 50.63 42.72

Operating expense - $/boe 11.77 14.21

Operating netback - $/boe (before G&A, interest and DD&A) 31.36 14.82

Notes:

Cash flow is used before changes in non-cash expenses to analyze operating performance. Cash flow does not have a standardized measure prescribed by Canadian Generally Accepted Accounting Principles and, therefore, may not be comparable with the calculations of similar measures for other companies.

"Boe" may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Copies of King's financial statements and accompanying notes for the quarter ended June 30, 2005 and related Management Discussion and Analysis may be obtained at www.sedar.com or by contacting the Company.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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%SEDAR: 00014713E

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