Epsilon Energy Ltd.: Second Compressor On-line, Employment Update

Mr. Richard A. Collins, Vice President of Land & Business Development for Epsilon Energy Ltd. and Epsilon Energy USA has resigned effective November 3, 2009. Mr. Collins served as an officer of Epsilon since early 2007 and has been actively involved in establishing the Company's Marcellus shale presence. Mr. Collins will remain at Epsilon to assist in the transition of his duties through November. The Board plans to explore a full range of options as it considers Mr. Collin's successor.

Mr. Zoran Arandjelovic, Executive Chairman of Epsilon, thanked Mr. Collins for his past service to the Company saying "Rich was instrumental in our leasehold acquisitions and securing permits in both Pennsylvania and New York. He has been travelling almost non-stop for the past three years and expressed many times that he wanted to spend more time with his family. With Epsilon's core operations concentrated in Pennsylvania, the travel would be even more strenuous."

Mr. Arandjelovic added, "Epsilon is in excellent shape with no debt, and significant momentum in operations due in large part to Rich's contributions in the Marcellus shale. We have a clear strategy that has us well positioned for future growth. Continuing our focus on execution of our Highway 706 project is our top priority. Today, I am pleased to announce that Epsilon's second compressor, which has a capacity of approximately 6.8 Mmcf per day, is now on line. As previously announced, we expect the second compressor to be at capacity before the end of the month."

Epsilon Energy Ltd. is engaged in the exploration and production of natural gas reserves targeting the Marcellus Shale. The company also has participating interests and production sharing agreements in other natural gas and oil plays within North America, the Middle East, and Africa. Established in 2005, the Corporation has been a producer of natural gas and oil since 2006. Epsilon's ongoing business strategy involves focused targeting of lower risk natural gas properties within the Marcellus Shale and other parts of Canada and the United States, as well as the high potential oil & gas properties in the Middle East and Africa. The common shares of Epsilon trade on The Toronto Stock Exchange under the symbol "EPS".

Forward-Looking Statements

Certain statements contained in this news release constitute forward looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", 'may", "will", "project", "should", 'believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements are based on reasonable assumption but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.

Special note for news distribution in the United States

The securities described in the news release have not been registered under the United Stated Securities Act of 1933, as amended, (the "1933 Act") or state securities laws. Any holder of these securities, by purchasing such securities, agrees for the benefit of Epsilon Energy Ltd. (the "Corporation") that such securities may not be offered, sold, or otherwise transferred only (A) to the Corporation or its affiliates; (B) outside the United States in accordance with applicable state laws and either (1) Rule 144(as) under the 1933 Act or (2) Rule 144 under the 1933 Act, if applicable.