Treaty Energy Corporation Signs LOI to Acquire Producing Oil & Gas Lease in West Texas

The VAGO #1 Project, a New Producing Oil & Gas Lease, Is Located on the Eastern Shelf of the Prolific Permian Basin

• Press Release
• Source: Alternate Energy Corporation dba Treaty Energy Corporation
• On 9:55 am EST, Friday January 9, 2009

ABILENE, TX--(MARKET WIRE)--Jan 9, 2009 -- Treaty Energy Corporation (OTC BB:ARGY.OB - News), still trading on the OTCBB as Alternate Energy Corp., today announced that it has executed a Letter of Intent to acquire the VAGO #1 Project, a new producing oil and gas lease in West Texas.

The VAGO #1 leasehold is located on the Eastern Shelf of the prolific Permian Basin. Certain necessary equipment repairs will add to Treaty's daily production immediately, and the project has two to three developmental step out sites to be drilled for new oil production and reserves. This leasehold is the first of several targeted lease acquisitions that lie within a large previously utilized gas storage unit that will be meshed into an overall larger scale VAGO project as acquired. Once this acquisition is complete and production from it for Treaty is commenced, further study and plans will be made for enhanced oil recovery measures to be instituted on this project in the existing production units.

This property is cohesive with Treaty's acquisition and operations plan of low risk, development and value added leaseholds that will allow maximization of return on investment dollars per barrel of oil or mcf of natural gas recovered and sold. We are excited about the building and future of the VAGO project.

About Treaty Energy Corporation

Treaty is engaged in the acquisition, development and production of oil and natural gas, primarily in the West Texas Permian Basin. Treaty acquires and develops petroleum productive properties, many of which have "proven but undeveloped reserves" at the time of acquisition, that are economically beneficial and fit well into Treaty's program, but not strategic to large exploration-oriented oil and gas companies. This strategy provides Treaty with the proven assets to develop and produce oil and natural gas with tremendously decreased risk, cost and time involved in traditional exploration. Treaty's headquarters are located in Abilene, Texas. For more information go to: www.treatyenergy.com

Forward-Looking Statements:

Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other financing; responding to competition and rapidly changing technology; and other risks. These risks are detailed in the Company's filings with the Securities and Exchange Commission, including Forms SB-2, 10-KSB, 10-QSB and 8-K. Actual results may differ materially from such forward-looking statements.

     Contact:
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     Tel: 732-292-0982
     Fax: 732-528-9065
     investors@treatyenergy.com