PILOT ENERGY LIMITED — Capital/Financing Update 2007

Aug 13, 2007

FALL RIVER RESOURCES LTD

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Canadian Office

Australian Office

711 -675 West Hastings Street Level 27, 101 Collins Street Vancouver, BC, V6B 1N2 Melbourne, Victoria, 3000 Tel: + 1 604 685 2222 Tel: + 61 39221 6394 Fax: + 1 604 685 3764 Tel: + 61 39221 6395

FOR IMMEDIATE RELEASE

Date: 14[th] August 2007 ASX Symbol: FRV

PRODUCTION TESTING OPERATIONS REPORT FOR WEST FLORENCE-1, WEST FLORENCE PROJECT AREA, COLORADO, USA

Fall River Resources Ltd has been advised by the operator Mountain Petroleum Corporation that the drilling rig on location at West Florence-1 has carried out production testing operations over the Upper Bench Dakota Sand and the Muddy J Sand. During the testing operations on these zones, additional gas was recovered at a rate too small to measure with accompanying water.

Further production testing was then carried out on the oil zones within the Codell Formation and the Niobrara Formation with small quantities of oil & gas recovered during that testing.

Given the encouragement of the oil recovered from the Codell and Niobrara zones, these zones will be fracture stimulated during the week, as is the usual practice, to determine the oil flow rates that these zones can produce.

The adjacent oil producing wells of the Florence Oil Field require fracture stimulation to produce commercial quantities of oil.

The total gross leasehold of 25,000 acres provides the participants in the West Florence project with a significant leasehold position.

West Florence-1 is the first well to be drilling in the West Florence Oil and Gas Project and its associated leasehold of 12,000 acres located in the Florence sub basin of the Denver basin. The leasehold is approximately 160 kilometres south of Denver, Colorado, USA.

The project area is to the west of the Florence Oil Field which produced approximately 15 million barrels of oil from fractured shales of the Pierre Formation in the 1940’s.

FALL RIVER RESOURCES LTD

Prospective Resources for the West Florence play as estimated by the Operator ranges between 100 BCF and 200 BCF of recoverable gas in the sands of the Muddy ‘J’ and Dakota Formation, and cumulatively up to 15 million barrels of oil for the three secondary targets, the Pierre, Niobrara and Codell Formations, should oil or gas be present.

Fall River holds a 15% working interest in 12,000 acres and up to a 10.5% working interest in 13,000 acres.

Prospective Resources are “those quantities of oil and gas estimated at a given date to be potentially recoverable from undiscovered accumulations” It must be noted that there is no certainty that the prospective resources are present

Commenting on the testing results observed so far, Fall River Managing Director Ian McBain said:

“The oil and gas seen while testing these zones confirms the presence of oil and gas in these target sections and in the general West Florence project area. In accordance with normal practice for these reservoirs in onshore USA, fracture stimulation will now be undertaken in order assess the potential for commercial production from these reservoirs.”

“Fall River looks forward to the test results from the fracture stimulation of the Codell and Niobrara zones in the West Florence-1 production testing program “

The participants in the drilling of West Florence-1 and the West Florence Oil and Gas Project and their respective interests through their wholly owned subsidiaries are as follows:

re as follows:
Fall River Resources Ltd (ASX:FRV	15.0%
Mountain Petroleum Corporation (Operator)	25.0%
Victorian Petroleum NL. (ASX:VPE)	25.0%
Adelaide Energy Limited	15.0%
North American Oil Gas Energy Pty Ltd	5.0%
Private American Interests	15.0%

FALL RIVER RESOURCES LTD

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Drilling of West Florence – 1 well – May / June 2007

West Florence Oil and Gas Project Colorado, USA

• West Florence Oil & Gas Project – 200 BCFG & 15 MMBO (P10)

• multiple gas & oil targets to 2,100 metres

• West Florence-1

  • large acreage position of 25,000 acres

  • testing multiple oil& gas shows in West Florence-1 in July 2007

  • Fall River interest – 10.5% - 15%

Map courtesy of Victoria Petroleum NL

FALL RIVER RESOURCES LTD

Jack Mulready Technical Director Fall River Resources Ltd

For further information please contact:

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

Ian Mc Bain - 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.