PET Peat Resources Ltd. (delisted)

Peat Resources Limited (TSX VENTURE: PET) is pleased to provide an update of progress being made on several fronts with respect to its peat fuel pellet developments.

The Company's small-scale production facility in Stephenville (Newfoundland) is performing well. A supply of peat fuel pellets is being made available for marketing and testing purposes and enquiries from interested parties are encouraged.

In July, the Company's CEO presented a paper on "Peat Fuel - A Sustainable Bioenergy Resource" at the IASTED 2009 environmental engineering conference in Banff (Alberta). This was part of a special session addressing the co-firing of biomass fuels and coal which highlighted results of the Atikokan Bioenergy Research Centre (ABRC) program funded by the government of Ontario. Peat Resources Limited is a private sector collaborative partner in this program to inform and assist Ontario Power Generation (OPG) to move from coal to biomass-fuelled electricity production. Serious difficulties experienced by OPG in the handling of wood pellet fuel at the Atikokan Generating Station have delayed further testing of biomass fuels at that facility, including the planned 500 tonne combustion trial of peat pellets. However, results of two other ABRC projects - examination of environmental impacts and benefits of wet peat harvesting (Lakehead and McMaster Universities) and investigation of co-firing peat and coal (CANMET Ottawa) - are expected in Fall 2009.

Peat pellets are now used by Starfish Oyster Bar and Grill in downtown Toronto; peat-smoked fish is on the menu. Peat Resources Limited has an ongoing arrangement to supply peat pellets to Starfish. It is also intended to utilize the Company's peat pellets at The Ceili Cottage ("an Irish local") in Toronto's Leslieville district.

Expressions of interest have been received for the use of peat fuel pellets for energy applications in Quebec and several U.S. locations. Interest in biomass fuels in the U.S. is growing dramatically in anticipation of new federal climate change legislation and financial incentive programs. Peat fuel is attractive as it is low in sulphur and mercury and provides a reduction in greenhouse gas emissions. Abundance of Canadian peat resources is also an important factor as supply of alternative biomass fuels such as wood waste and wood pellets is becoming severely restricted in some regions due to the downturn in the forest products industry.

With a strong 43-101 defined resource base on its peatland properties in northwestern Ontario and Newfoundland, and its environmentally sound harvesting and peat pellet production technology, Peat Resources Limited is well-positioned to meet expected demands for sustainable biomass energy resources.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release.

Contacts: Peat Resources Limited Peter Telford President and CEO (416) 862-7885 (416) 862-7889 (FAX) Email: peatfuel@peatresources.com Website: www.peatresources.com