HOUSTON, TX--(MARKET WIRE)--Sep 29, 2008 -- Petro Resources Corporation (PRC - News) ("the Company") announced today that it has sold the Company's 5.33% limited partner interest in Hall-Houston Exploration II, L. P. The interest was purchased by a privately owned partnership for a cash consideration of $8.00 million. The Company will realize a net gain on the sale of the asset of approximately $1.10 million for the quarter ending September 30, 2008.

The Company used approximately $7.97 million of the proceeds from this transaction to redeem 2,563,712 shares of the Company's outstanding Series A Preferred Stock at a price of $3.00 per share plus accrued dividends. The shares were held by investment funds managed by Touradji Capital Management. Pursuant to the terms of the Series A Preferred Stock, the Company was required to redeem all Series A Preferred Stock no later than October 2, 2008. After giving effect to the redemption, there is no Series A Preferred Stock outstanding.

The Company's Chief Executive Officer, Wayne Hall, commented, "This key transaction allows us to clean up the balance sheet with the redemption of the preferred stock and to preserve that corresponding amount of availability under our new senior credit facility for use in our capital program."

About Petro Resources

Petro Resources Corporation is an independent exploration and production company engaged in acquisitions of exploratory leases, acquisitions of producing properties, secondary enhanced oil recovery projects, exploratory drilling, and production of oil and natural gas in the United States.

The Company is currently producing oil and natural gas from a geographically and geologically diversified reserve base. The Company's net total proved reserves of more than 3.0 million barrels of oil equivalent is distributed among 18 fields in the states of North Dakota, Texas, and Louisiana.

For more information, please view our website at www.petroresourcescorp.com.

Forward-looking Statements

The statements contained in this press release that are not historical are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements, without limitation, regarding the Company's expectations, beliefs, intentions or strategies regarding the future. Such forward-looking statements relate to, among other things: (1) the Company's proposed exploration and drilling operations on its various properties, (2) the expected production and revenue from its various properties, and (3) estimates regarding the reserve potential of its various properties. These statements are qualified by important factors that could cause the Company's actual results to differ materially from those reflected by the forward-looking statements. Such factors include but are not limited to: (1) the Company's ability to finance the continued exploration and drilling operations on its various properties, (2) positive confirmation of the reserves, production and operating expenses associated with its various properties; and (3) the general risks associated with oil and gas exploration and development, including those risks and factors described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2007 and Form 10-Q for the quarters ended March 31, 2008 and June 30, 2008. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

     Contact:
      
     Brad Holmes
     Investor Relations
     (713) 654-4009
     or
     Don Kirkendall
     President
     (832) 369-6986