CONCORD, ONTARIO--(Marketwire - Sept. 10, 2008) - Epsilon Energy Ltd (TSX:EPS) ("Epsilon" or the "Company") is pleased to announced it has entered into an agreement to acquire 10,200 gross (5,100 net to Epsilon) prospective Marcellus shale leasehold acres in Chemung and Tioga counties in New York from a privately held company for approximately $5.1 million in cash. The Company now holds approximately 87,200 gross (42,600 net) prospective Marcellus shale leasehold acres in New York and Pennsylvania.

The acquired acreage is included within an existing joint venture and Area of Mutual Interest ("AMI") for which the Company is the operator and holds a 50% working interest. Two other privately held companies each hold a 25% working interest in the joint venture and AMI.