Tearlach Renews Production at One of the World's Giant Oil Fields

Tearlach Resources Ltd., (TSX VENTURE:TEA), www.tsx.com announces
it has recommenced production in one of the world's giant oil fields,
of which it owns approximately 5.7%. The Company's approach and
innovative technologies breathes new production life into an old
field, with the potential of additional oil recovery.

The Company's NI 51-101 compliant reserves in the Kern Front Field
are currently 396,520 barrels Proven plus Probable of which 228,141
barrels are Proven Producing plus non-Producing, dated June 2006, by
John Yu of Petrotech Engineering Ltd., the Company's Qualified Person.

Tearlach is currently developing its interests in the Kern Front
Oil Field with the a total Enhanced Oil Recovery Development Plan
combining 3D and 4D geophysical modelling, planned well development,
drilling, and implementation.

The Kern Front Oil Field has historically produced 165 million
barrels of oil, and is estimated to have a potential of 500 million
barrels of oil remaining. That 1990 estimate was jointly developed by
Martin H. Link of Mobile Research & Development Corp, Kenneth P.
Helmold of ARCO Oil and Gas Company and William T. Long of OXY USA
Inc., representing the then current Field producers. That 500 million
barrel estimate was developed prior to the implementation of National
Instrument 51-101 and is consequently now not accepted under current
NI 51-101 policy, but does represent an estimate of potentially
recoverable oil by then qualified professionals operating in the Kern
Field using 1990 accepted reporting standards.

The Company's properties are located within the combined Kern
River and Kern Front Oil Fields, and is a joint development of
Tearlach Resources Ltd. (60% working interest) (www.tearlach.ca;
www.tsx.com; Symbol: TEA) and Western States International, Inc. (40%
working interest) (www.wsius.com). United Pacific Energy Corporation
is the project's Operator (www.upecglobal.com).

Although the Kern Front Field and the Kern River Field have been
in production for many years, the amount of oil they produced to date
greatly exceeds original reserve estimates. A December 20, 2006
article in Newsweek Magazine
(www.msnbc.msn.com/id/16288769/site/newsweek) which concerns the
phenomenon of underestimated oil reserve estimates, notes that '(a)
most astonishing (example) is the Kern River Field in California,
discovered in 1899. In 1942 its "remaining" reserves were estimated at
54 million barrels. Yet, from 1942 to 1986 it produced 736 million
barrels, and still had another 970 million remaining.'

More generally, Klett and Schmoker (2003) demonstrated that, from
1981 to 1996, the estimated volume of oil in 186 well-known giant
fields in the world increased on average from 617 to 777 million
barrels of oil without new discoveries.

The phenomenon of 'reserve growth' is directly impacted by 'four
fundamental elements: technology, price, political decisions and
better knowledge of existing fields' (Maugeri, 2004).

The Company is continuing to use its expertise to evaluate
additional oil and gas properties for potential acquisition.

For additional information visit www.tearlach.ca

"Malcolm Fraser"

President

This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are not historical facts and are subject to risks and
uncertainties which could cause actual results and the timing of
certain events to differ materially from those set forth in or implied
herein including, without limitation, risks associated with oil and
gas exploration, development and production operations and other
risks, uncertainties and other factors that are beyond the control of
the Company. References are found on the Company's web site.

The TSX Venture Exchange has not reviewed this News Release and
neither approves nor disapproves of the contents hereof, which remain
the sole responsibility of the Company.