Mainland Receives Positive Results From its First Series of Full Core Analyses on its Buena Vista Shale Gas Project in Mississippi

HOUSTON, Jan. 31, 2011 /PRNewswire/ -- Mainland Resources, Inc. (the "Company" or "Mainland") (OTCQB: MNLU, Frankfurt: 5MN) management has received positive results from the first series of core analyses performed on its Haynesville/Bossier Shale operating area in Jefferson County, Mississippi.

The core was taken from 20,415 feet to 20,436 feet measured depth (or a total core of twenty-one feet) from the Burkley-Phillips #1 well prior to the well reaching a total depth (TD) of 22,000 feet. The reservoir characteristics observed in the cored interval were found to be consistent with other gas producing shales when compared to an existing dataset of gas producing shales. The extreme over-pressure observed in Mainland's well is expected to enhance gas storage capacity, supporting an even greater gas reserves upside for the Buena Vista prospect.

Mainland can now confirm that the mineralogy and Total Organic Carbon (TOC) percentage measured are within prospective ranges for the shale-dominated reservoir encountered. Porosity, permeability and water saturation values were also calculated. These values have been plotted against other known gas producing shale reservoirs and been used to "fingerprint" the reservoir, allowing the Company to draw direct comparison with regards to shale gas potential.

Mainland CEO Nick Atencio states, "The initial results from the core analysis provide very encouraging insights into the gas potential of the deep section of the Burkley-Phillips #1 well. The fact that we are over pressured lends itself to larger gas recoveries within smaller pore spaces and the laboratory measurement of gas filled porosity supports the multiple mud log gas shows seen while drilling the well through this interval. Simply put, this is exactly what we would look for in a productive shale gas well. We are looking forward to the ongoing assessments as they further refine the prospectivity of this well."

The results of these analyses have been reviewed and corroborated by independent experts who possess an extensive database of core analyses from shale gas formations throughout the southern United States. The Burkley-Phillips #1 core data was compared to these known producing shales, with results supporting excellent gas potential within the Burkley-Phillips #1 well.

Mainland's management believes that this fullcore is an extremely valuable data source, unique to the region, and that it will prove to be of critical importance in unlocking the shale gas value in the area.'

The information received from these reports is being incorporated into a broader assessment coordinated by the Company's land, geology and management teams. Mainland plans to provide continual reports on further interpretation as additional analyses are completed as part of the Company's anticipated updates.

About Mainland Resources, Inc.

Mainland Resources, Inc. is engaged in the exploration of oil and gas resources. The Company's current initiatives are focused on the acquisition and development of acreage in emerging and early developing oil and gas regions with the potential for material discoveries.

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THE COMPANY AND AMERICAN EXPLORATION CORPORATION INTEND TO FILE CERTAIN MATERIALS WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION IN CONNECTION WITH THE PROPOSED MERGER TRANSACTION BETWEEN THE PARTIES ANNOUNCED ON MARCH 23, 2010, INCLUDING THE FILING BY THE COMPANY WITH THE SEC OF A REGISTRATION STATEMENT ON FORM S-4, WHICH WILL INCLUDE A PRELIMINARY PROSPECTUS AND RELATED MATERIALS TO REGISTER THE SECURITIES OF THE COMPANY TO BE ISSUED IN EXCHANGE FOR SECURITIES OF AMERICAN EXPLORATION. THE REGISTRATION STATEMENT WILL INCORPORATE A JOINT PROXY STATEMENT/ PROSPECTUS THAT THE COMPANY AND AMERICAN EXPLORATION PLAN TO FILE WITH THE SEC AND MAIL TO THEIR RESPECTIVE STOCKHOLDERS IN CONNECTION WITH OBTAINING STOCKHOLDER APPROVAL OF THE PROPOSED MERGER. THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, AMERICAN EXPLORATION, THE MERGER AND RELATED MATTERS. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN THEY ARE AVAILABLE. INVESTORS AND SECURITY HOLDERS WILL BE ABLE TO OBTAIN FREE COPIES OF THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS WHEN THEY BECOME AVAILABLE, AND OTHER DOCUMENTS FILED WITH THE SEC BY THE COMPANY AND AMERICAN EXPLORATION, THROUGH THE WEB SITE MAINTAINED BY THE SEC AT WWW.SEC.GOV.  THE COMPANY'S SECURITY HOLDERS WILL ALSO RECEIVE INFORMATION AT AN APPROPRIATE TIME ON HOW TO OBTAIN THESE DOCUMENTS FREE OF CHARGE FROM THE COMPANY. IN ANY EVENT, DOCUMENTS FILED BY THE COMPANY WITH THE SEC MAY BE OBTAINED FREE OF CHARGE BY CONTACTING THE COMPANY AT: MAINLAND RESOURCES, INC.; ATTENTION: MR. WILLIAM THOMAS, CFO; 21 WATERWAY AVENUE, SUITE 300, THE WOODLANDS, TEXAS 77380; FACSIMILE: (713) 583-1162.

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SOURCE Mainland Resources, Inc.