IPRC Imperial Resources Inc (CE)

Imperial Resources, Inc. (OTCBB: IPRC) today is pleased to announce that its wholly owned subsidiary, Imperial Oil & Gas, Inc. (together the "Company", "Imperial"), today provides an update summarizing and expanding upon recent developments.

Oklahoma Resource Play

The Oklahoma Resource Play remains Imperial's key focus and value driver. A leasing program is now under way and a number of the targeted leases have been acquired. Our partner continues to experience some excellent well stimulation success in a nearby and analogous project, reinforcing Imperial's belief that the potential of the Company's Oklahoma Project is very large indeed compared to the Company's current capitalization. If successful, the Company believes it will transform Imperial's production and reserve numbers.

As announced on December 20, 2010, Imperial has taken a nominal working interest in a well in the same blanket formation to gain further access to the science behind the Oklahoma play, without exposing the Company to significant risk. The well will use a new stimulation methodology and assessment of the drilling results, particularly the engineering and performance of the stimulation process applied to the formation, is expected to further de-risk the development of the Oklahoma Resource Play.

Salt Water Disposal Well

On April 27, 2011 Imperial entered into an agreement to acquire 100% of an incomplete Salt Water Disposal Facility ("Facility") located in the heart of the Barnett Shale. The Facility is second only to the Oklahoma Resource Play in economic importance to the Company.

The Company is extremely pleased at having increased its ownership from the previously announced anticipated 80% to secure outright ownership on what it believes are excellent terms. In excess of $5,000,000 has been invested by the original owner in developing the Facility which includes the entire necessary infrastructure, main highway access and all equipment required for water disposal with the notable exception of the existing wellbore being incomplete. Subject to funding, Imperial intends to re-enter the existing wellbore sidetrack around an obstruction and then deepen the hole to access the Ellenberger, a deep formation widely used for safe water disposal.

Imperial remains of the view that the Facility is an exciting, low risk opportunity that could provide an excellent rate of return with reliable, non-depleting revenues coupled with a near term material asset uplift.

Complementary Opportunities

Contracts for two other low risk opportunities have also been entered into.

Stateline

On January 25, 2011 Imperial entered into a Farmout Agreement for the right to earn acreage by drilling infill wells ("Stateline") in the existing Sawyer Field, in Lea County, New Mexico. The acreage at Stateline is sufficient to accommodate 4 vertical wells at relatively shallow depths of < 5,000 feet and is expected to produce primarily oil. The Company has conducted an internal Reserve Evaluation and believes gross recoverable reserves from the first well are in the order of 64,274 BO and 104,540 Mcf of gas. Over the 4 wells it is estimated that total reserves will be in excess of 250,000 BO and 400,000 Mcf of gas. The Company believes there is the potential for additional upside; directly offset well production to the project includes 63,117 BO and 126,426 Mcf from the Dyco Federal 33 #2 well and 160,244 BO and 1,408,369 Mcf from the Great Western Federal #1 well.

The internal Reserve Evaluation for Stateline classifies the reserves as Proven Undeveloped Reserves (also referred to as 1P, or P90), at the very lowest end of industry risk. The Company's capital expense for the first well is expected to be around $635,000.

Nunnelly #1

On January 21, 2011 Imperial announced it had entered into an agreement with the mineral owner of approximately 35 acres and an existing wellbore in Montague County, Texas. The Company has obtained an evaluation from an independent registered petroleum engineer allocating a P50, or 2P, rating indicating total recoverable reserves of in excess of 17,000 BO for the well. A P90 or 1P was not assigned as no well logs or subsurface maps were available for geologic review and the nearest producer is one and a half miles away, resulting in a lack of a direct offset in the target formation. The Company believes there is potential for additional upside, as what records are available show several nearby wells with materially larger reserves. Operations are currently underway to assess whether the hole is clear to total depth whereby the hole will be deepened by drilling to approximately 6,500 feet (targeting the deeper productive Caddo Limestone formation), at which point open hole logs will be run on the newly drilled section. If these are satisfactory, the newly drilled section is expected to be cased, cemented and perforated.

Production

Imperial continues to receive monthly production revenues from its 14.9% ownership in a gas well in Colorado, Texas. Operated by the El Paso Corporation, the well has been on production since the start of 2009 and continues to produce at rates of around 500 Mcf of gas per day and 10 BO per day.

Capital

Management has made excellent progress in efficiently eliminating material indebtedness in readiness for expansion and raising, at a good valuations, initial rounds of capital to enable it to secure its projects ahead of full development funding.

On December 13, 2010, a promissory note for $900,000 and accrued interest was converted to 1,625,059 shares of common stock by agreement with the note holder. This eliminated the virtually all of material debt and transformed Imperial's balance sheet.

On December 31, 2010 Imperial entered into a Securities Purchase Agreement for a subscription for up to $3,000,000 of Imperial's common stock at a 15% discount to the Volume Weighted Average closing Price, with a floor price set at $0.68. As part of the agreement there was an immediate subscription for $500,000 in cash for 737,041 new shares of common stock.

On April 27, 2011, Imperial entered into a Convertible Promissory Note with the seller of the Facility for $450,000 repayable in cash or stock and carrying a coupon of 6% over 54 months, enabling it to purchase the Facility for a minimal cash outlay.

Imperial, though its advisors, is in advanced discussions with a number of funding sources both in North America and Europe with a view to offering equity and/or debt instruments to attract significant financing into the Company's low risk opportunities.

Rob Durbin, CEO of Imperial, said: "Our team has made great progress in a very short time. I am confident that 2011 will continue to be a very exciting year for Imperial and our stockholders as we build on these recent achievements."

About Imperial Resources, Inc.

Imperial Resources, Inc., through its wholly owned subsidiary, Imperial Oil & Gas, Inc., has a highly focused, risk-averse strategy of building a substantial portfolio of oil and gas assets through its access to niche, low risk oil and gas opportunities in the onshore U.S. Imperial aims to exploit projects which can deliver cash flows normally associated with higher risk projects but without exposure to high risk failure rates.

To find out more about Imperial Resources, Inc. (OTCBB: IPRC), visit our website at www.imperialresourcesinc.com. Details of the Company's business, finances, appointments and agreements can be found as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's EDGAR database.

Forward-Looking Statements

Statements in this news release that are not statements of historical fact are forward-looking statements, which are subject to certain risks and uncertainties. Forward-looking statements can often be identified by words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "assumes," "likely," "believes" and words of similar import. 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. Actual results may differ materially from those expressed or implied by forward-looking statements due to a variety of factors that may or may not be foreseeable or within the reasonable control of the Company. Readers are cautioned not to place undue reliance on such forward-looking statements. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission, including without limitation under the caption "Risk Factors" in the Company's Annual Report on Form 10-K filed on July 9, 2010. Except as otherwise required by law, the Company disclaims any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this news release to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Contact: Rob Durbin CEO Telephone: 512 322-5740 http://www.imperialresourcesinc.com/pages/contact