Palisades Petroleum Corporation: Drilling Contract Signed

Palisades Petroleum Corporation is pleased to announce that the operator of the North Buffalo and Highwood Property, Cline Production Company of Billings Montana, USA has signed a drilling company to drill two shallow gas wells in North West Montana.

Cline Production Company, the operator of Palisades North Buffalo and Highwood Properties, executed a contract in mid-September that calls for the drilling of two wells to target the Bow Island formation.

Further information on the progress of the Companies activities will be presented on a timely basis.

Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, limited access to operating capital, factors detailed in the accuracy of geological and geophysical results including drilling and seismic reports; the ability to close the acquisition of Oil and Gas exploration properties, 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. More information is included in Palisades Petroleum Corporation filings with the Pink Sheets LLC and may be accessed at http://www.pinksheets.com.

Contacts: Palisades Petroleum Corporation Leslie Rutledge President (702) 948-0659 Email: lrutledge@palisadespetroleum.com

Website: www.palisadespetroleum.com