PILOT ENERGY LIMITED — Capital/Financing Update 2007

Sep 12, 2007

FALL RIVER RESOURCES LTD

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Canadian Office

711 -675 West Hastings Street Vancouver, BC, V6B 1N2 Tel: + 1 604 685 2222 Fax: + 1 604 685 3764

Australian Office

Level 27, 101 Collins Street Melbourne, Victoria, 3000 Tel: + 61 39221 6394 Tel: + 61 39221 6395

FOR IMMEDIATE RELEASE

Date: 13[th] September 2007 ASX Symbol: FRV

FARMIN INTO SOUTH QUEENSDALE OIL PROSPECT, SASKATCHEWAN, CANADA

Fall River Resources Ltd. (“Fall River”) is pleased to announce that it has entered into a Participation Agreement with Petrex Energy Ltd, the farmor, whereby by it has acquired an interest in a half section of land (320 acres) with oil targets in the South Queensdale area of Saskatchewan.

This prospect is located on the south side of the Queensdale field which has produced over 50 million barrels from the Mississippian age Alida Formation and the associated Kisby Sandstone Member.

The potential recoverable resource for the South Queensdale prospect is estimated by the Operator, Texalta Petroleum Ltd, as up to 1 million barrels of oil for the Kisby Sand target.

Fall River has acquired a 25% working interest before payout and a 15% working interest after payout subject to Crown royalties and 5% gross overriding royalty which will terminate at payout. The participation cost for such interest is 25% of the estimated costs to drill and case the test well, being CAD $112,500, (approximately Aus$130,000, but does not include the costs to complete, equip and test the well.

The targets are the Mississipian age Kisby & Lodgepole Formations, both of which are producing reservoirs in Southeast Saskatchewan.

Programmed total depth of the well is approximately 1400 metres.

Site preparation is expected to commence shortly with the well programmed for drilling, October 2007.

Commenting, Ian McBain, President, said: “The focus of Fall River is to quickly build production and cash flow producing assets. The acquisition of participation interests

FALL RIVER RESOURCES LTD

in the South Queensdale property provides further resource portfolio diversity and provides a property where the initial work program is being immediately commenced.”

Ian McBain President Fall River Resources Ltd

For further information please contact:

Stephen Pearce - Director Telephone: (604) 685-2222 stephenpearce@fallriverresources.com

Ian McBain - President Telephone: +61 418 318 683 ianmcbain@fallriverresources.com

The ASX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the company’s control which may cause actual results, performance or achievements of the company to be materially different from the results, performance or expectation implied by these forward looking statements.