Churchill Announces Mailing of Circular

• Press Release
• Source: Churchill Energy Inc.
• On 4:01 pm EST, Wednesday December 31, 2008

CALGARY, ALBERTA--(Marketwire - Dec. 31, 2008) - On December 16, 2008, Churchill Energy Inc. ("Churchill") (TSX VENTURE:CEI - News) announced that it had entered into a definitive agreement with Welton Energy Corporation ("Welton") whereby Churchill would acquire all of the issued and outstanding common shares of Welton pursuant to a plan of arrangement under the Alberta Business Corporations Act (the "Arrangement"). On December 31, 2008, Welton mailed an information circular and proxy statement to the shareholders, optionholders and debentureholders of Welton in respect of a meeting to be held January 30, 2009, for the purpose of approving the Arrangement.

In addition Churchill would like to thank James P. Baker for his efforts and contribution to Churchill over the years. Mr. Baker has resigned as President of Churchill effective December 31, 2008 in order to more actively pursue other business interests in Saskatchewan.

Forward Looking Statements: Certain information regarding Churchill in this news release may constitute forward-looking statements under applicable securities laws and necessarily involve risks. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Churchill does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Kelly D. Cowan
Churchill Energy Inc.
Chief Executive Officer
(403) 693-3001
Email: kcowan@churchillenergy.ca

Thanh C. Kang
Churchill Energy Inc.
Chief Financial Officer
(403) 698-8246
Email: tkang@churchillenergy.ca

780, 700 - 4th Avenue S.W.
Churchill Energy Inc.
Calgary, Alberta T2P 3J4