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                          GULFSTAR ENERGY CORPORATION




                                  PRESS RELEASE


Gulfstar  Energy  Group,  LLC  enters  into  Letter of Intent  with B & T Energy
Expanding its Midstream Assets and Natural Gas Production Operations

Morgantown, Kentucky--(September 16, 2011,).

The new company,  equally  owned by both  Gulfstar and B & T, would create a new
pipeline  connecting B & T's assets in Edmonson  county to  Gulfstar's  existing
pipeline operating in Warren and Butler counties. B & T would be responsible for
supplying up to 6,000 MCFD,  while  Gulfstar will be  responsible  for sales and
marketing, including the sale of B & T gas to existing Gulfstar customers.

Robert McCann,  CEO of Gulfstar  Energy  stated,  `This new project allows us to
leverage  and expand  existing  Gulfstar  assets  and make us a major  midstream
provider in western Kentucky."

About the Company

Gulfstar  Energy  Corporation  is an independent  energy company  engaged in the
acquisition and development of oil and gas assets in the United States. Gulfstar
currently owns and operates 20 miles of pipeline infrastructure and has a 10,000
acre lease in the Illinois  Basin.  The company also has an acreage  position in
the Wattenberg field in northern  Colorado which is scheduled for oil production
development beginning in fourth quarter 2011.


555 Eldorado Blvd. Suite 100, Broomfield Colorado 80021      Phone: 303-404-2160






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Safe Harbor Statement


This press release contains  forward-looking  statements that are subject to the
safe  harbors  created  under  the  Securities  Act of 1933  and the  Securities
Exchange Act of 1934. We use words such as "anticipate,"  "believe," "continue,"
"could,"  "estimate,"  "expect,"  "goal,"  "intend,"  "may," "plan,"  "project,"
"seek,"  "should,"  "target,"  "will,"  "would,"  variations  of such  words and
similar  expressions  to  identify  forward-looking   statements.   Readers  are
cautioned that actual results could differ  materially  from those  expressed in
any  forward-looking  statements.  Factors  that could cause  actual  results to
differ  include:  the  ability  of  Gulfstar  to  successfully  integrate  B & T
operations and  employees;  the ability to realize  anticipated  benefits of the
proposed   acquisition,   including   the   expectation   of   greater   revenue
opportunities,  operating  efficiencies and cost savings;  the ability to ensure
continued  performance and market growth of B & T's business;  continued turmoil
in global financial markets and economies;  the availability and cost of credit;
the  ability  to  successfully   develop,   introduce,   and  sell  product  and
enhancements;   changes  in   relationships   with  key  customers,   suppliers,
distributors,  resellers, and others as a result of the acquisition; the ability
of  the  Company  to  locate  and  retain  replacement  executive  officers  and
directors,  and other factors  affecting  the oil and gas and energy  industries
generally.  In addition,  please refer to the risk factors contained in Gulfstar
Energy Corporation's SEC filings available at www.sec.qov,  including Gulfstar's
most  recent  Annual  Report on Form 10-K and  Quarterly  Reports  on Form 10-Q.
Readers  are  cautioned  not to  place  undue  reliance  on any  forward-looking
statements,  which speak only as of the date on which they are made. The Company
undertakes no obligation to update or revise any forward-looking  statements for
any reason