PILOT ENERGY LIMITED — Capital/Financing Update 2007

Jul 30, 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: 31[st] July 2007 ASX Symbol: FRV

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

Fall River Resources Limited 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 Dakota Sandstone interval.

The three zones to be tested, working from the bottom up will be the Lower Bench Main Dakota Sand the Upper Bench Main Dakota Sand and the Muddy J Sand. During testing of the Lower Bench of the Dakota Sandstone, gas was recovered at a rate too small to measure with accompanying water.

The next zone up the hole, the Upper Bench Dakota Sand, has also been perforated but has not yielded any gas

Formation water from both these tests has provided conclusive data on formation water resistivity, a vital element of the log interpretation. Subsequent reinterpretation of the wire line logs suggests that the remaining Dakota and Muddy J Sand zone, although exhibiting strong gas shows while drilling will not produce commercial hydrocarbons at this particular well location.

Perforation and testing of the Muddy J sandstone will be undertaken before releasing the rig from location.

Evaluation of the West Florence-1 well will now focus on the testing of the oil production capability of the Codell, Niobrara and Pierre formations in approximately 2-3 weeks time.

These zones exhibited good oil shows while drilling in West Florence-1 with the Pierre Shale formation oil productive in the adjacent Florence oil field. "

The Niobrara and Pierre Shale formations will require fracture stimulation if they are to be oil productive.

FALL RIVER RESOURCES LTD

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 up to the 1940’s.

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 to date, Fall River’s managing director Ian McBain said:

“The gas seen while testing this lower bench of the Dakota Sand, while not commercial, confirms the presence of gas in the target section and in the general West Florence project area. It thus opens up opportunities for further exploration for Dakota Sandstone and Muddy J Sandstone at higher subsurface elevations.

We look forward to further results from the higher zones in the West Florence-1 production testing program “

The participants in the drilling of this West Florence-1 well and their respective interests through their wholly owned subsidiaries are as follows;

Fall River Resources Ltd (ASX:FRV ; TSXV:FRR)	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

Neither the ASX nor the TSX Venture Exchange has 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.