Doral Energy Corp Provides Corporate Update

MIDLAND, Texas, June 24, 2010 (GLOBE NEWSWIRE) -- Doral Energy Corp. (OTCBB:DRLY) ("Doral" or "the Company"), is pleased to share with shareholders recent developments that have occurred as it relates to Doral's financial status as well as its' pending acquisition.

Financial Update

Doral Energy recently filed their 3^rd Quarter 10Q on June 21, 2010, in which the "Going Concern" has been removed by Doral's 3^rd party financial auditors, MaloneBailey LLP of Houston, Texas. The removal of the "Going Concern" is a great milestone for the Company since it represents that Management has been able to re-position Doral to better realize potential shareholder appreciation in the near term. Additionally, The Company currently has sufficient capital to close on its pending acquisition in southeastern New Mexico with net proceeds via the divestiture of its' Hanson Energy Oil and Gas assets. The Company has also been able to payoff approximately $1,500,000 of debt that had been incurred during the past two years as well as pay off all Macquarie Bank Limited debt in the amount of approximately $6,500,000.   The surplus cash will be used to acquire Doral's pending acquisition as well as provide the Company with ongoing operating capital.

Operations Update

Doral Energy entered into a binding Purchase and Sale Agreement with certain Sellers to acquire producing oil assets within Southeastern New Mexico on June 14, 2010. Doral is currently completing its due diligence period and does expect to close on the transaction. Doral has commissioned a 3^rd party Reserve Report to provide management a detailed analysis on the acquisitions' PDP Reserves with the results as follows:

A Market Price case was run on the evaluated properties for just the PDP Reserves. This report does not include all Proved Categories. The oil price utilized for this analysis was 55.00 $/Bbl from 01/01/10 for 12 months, 57.50 $/Bbl for 12 months, 60.00 $/Bbl for 12 months and 62.50 $/Bbl thereafter.   The gas price is 4.50 $/MCF from 01/01/10 for 12 months, 5.00 $/MCF for 12 months, 5.50 $/MCF for 12 months and 6.00 $/MCF thereafter. The initial average price of oil and gas in this analysis was 50.38 $/Bbl and 0.00 $/MCF. The economic results of the Market Price for just the PDP Reserves are shown below.

Doral intends on updating the report to include all proved categories and expects to receive such results within 60 days.

Management Comments

Mr. E.W. Gray II, Chairman and CEO states, "We are pleased with the removal of the 'Going Concern' that has been associated with Doral Energy's financials for the past two years. It is Management's hope that this will separate Doral Energy from our competitors in order to attract a new base of shareholders, including both retail and institutional. Additionally, the removal of the 'Going Concern' has been a top priority for management since this will play a key factor in Doral's efforts to potentially list on the NYSE AMEX." Mr. Gray further states, "Doral will continue in its efforts to close on the transaction in southeastern New Mexico. This asset base could provide Doral Energy and its shareholders a solid foundation from which to further expand its reserve base. We will continue to work diligently on the implementation of our business model in hopes to further separate Doral Energy from its competition. We again wish to thank all shareholders for their continued support and look forward to providing more information on our upcoming acquisition."

About Doral Energy Corporation

Doral Energy Corp. (OTCBB:DRLY) is an oil and gas exploitation and production company headquartered in Midland, Texas. Doral Energy Corp.'s strategy is to grow a portfolio of under-developed production and exploitation assets with the potential for generating near-term increases in existing production through operational improvements, and longer-term development of proved undeveloped reserves by infill drilling. Doral focuses on identifying acquisitions that generate immediate cash flow from production, but which also have strong proved developed non-producing and proved undeveloped reserves that can be tapped for significant growth. The prolific Permian Basin of Texas and New Mexico is the geographic region of focus for the Company's future acquisition activity. Shareholders and investors are encouraged to visit Doral Energy's website at www.DoralEnergy.com for more information.

Forward Looking Statements

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, this news release contains forward-looking statements that are not historical facts and are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur.    In particular, there is no assurance that Doral will be able to further increase shareholder value or increase market capitalization due to either unforeseen markets conditions or the possibility of dilution in order to execute upon the Company's business model. It additionally cannot provide assurance that it will close on its expected transaction in southeastern New Mexico due to variables outside the control of the Company. Further up-listing to the NYSE AMEX is also predicated on certain conditions that may or may not take place for The Company. Additional information on risks for the Company can be found in the Company's filings with the US Securities and Exchange Commission.