Treaty Energy Corporation Announces LOI to Enter Into an Oil and Gas Joint Venture

ABILENE, TX--(Marketwire - August 7, 2009) - Treaty Energy Corporation TECO today announced a Letter of Intent ("LOI") to enter into a 50/50 Oil & Gas Joint Venture ("JV") with Discovery Resource Group, LLC ("DRG"), a Delaware limited liability company.

Initially, DRG will pledge 19 wells from 4 affiliated partnerships and TECO will pledge 9 wells to a bank to procure an estimated $2,000,000 line of credit for drilling and work overs of wells.

The line of credit is projected to do work overs in West Texas, radial jet lateral line work overs, and drill new wells in Tennessee.

DRG is to secure an initial credit line of $2 million for the Company based on the combined asset base mentioned above. Additionally, DRG, through their considerable financial connections, will grow the line of credit as the reserves grow to support the credit facility. The credit line will be secured by the values of production, reserves, and field equipment.

Treaty Energy is to provide additional drilling and acquisition opportunities from its current considerable list of prospects opportunities that Treaty Energy would have to pass on currently can be taken through this alliance.

Treaty and DRG expect to conclude the due diligence process and all other aspects of this JV agreement, including initial funding, within 6 to 8 weeks.

Updates will be provided as management feels appropriate to keep shareholders and other interested parties informed on the progress of this exciting new opportunity for Treaty Energy Corporation.

About Treaty Energy Corporation

Treaty is engaged in the acquisition, development and production of oil and natural gas, primarily in the West Texas Permian Basin, but may expand this scope if suitable opportunities come to Treaty's attention. Treaty acquires and develops petroleum productive properties, many of which have "proven but undeveloped reserves" at the time of acquisition, that are economically beneficial and fit well into Treaty's program, but not strategic to large exploration-oriented oil and gas companies. This strategy provides Treaty with the proven assets to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration. Treaty's headquarters are located in Abilene, Texas. For more information go to: www.treatyenergy.com

Forward-Looking Statements:

Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in the Company's filings with the Securities and Exchange Commission, including Forms SB-2, 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.