Alston Announces Equity Offering

Released 2012-01-31

Calgary, AB.  January 31, 2012 - Alston Energy Inc. (TSX-V: ALO) (the "Company") is pleased to announce that it has entered into a letter agreement with Integral Wealth Securities Limited ("Integral") as agent in connection with a "best efforts" private placement offering of units (the "Units") comprising a minimum of 6,700,000 and a maximum of 26,700,000 common share units ("Common Share Units") at a price of $0.15 per Common Share Unit, and a maximum of 16,666,667 flow-through units ("Flow-Through Share Units") at a price of $0.18 per Flow-Through Share Unit, for maximum combined gross proceeds of $4,005,000 (the "Offering").

Each Flow-Through Share Unit consists of one common share of the Company to be issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) and one-half of one transferable common share purchase warrant of the Company (each whole common share purchase warrant, a "Warrant"), each Warrant entitling the holder thereof to acquire one common share of the Company at a price of $0.20 per common share for a period of 18 months following the closing of the Offering. Each Common Share Unit consists of one common share of the Company and one-half of one Warrant (as hereinbefore described).

In connection with the Offering, the Company has agreed to pay Integral a cash amount equal to 8% of the aggregate gross proceeds raised under the Offering plus non-transferable broker warrants equal in number to 8% of the Units sold pursuant to the Offering (excluding subscriptions from President's List subscribers), which will entitle the holder to purchase common shares of the Company at $0.20 per share for a period of two years following the closing of the Offering.

The Offering is expected to close on or about February 17, 2012. Proceeds of the Offering will be used in part to assist the Corporation with the purchase of certain producing and non-producing properties from Crescent Point Resources Partnership pursuant to a Purchase and Sale Agreement dated December 20, 2011, as announced by the Company in its news release of December 20, 2011,  with the balance of the proceeds used for the Company's 2012 capital expenditure program and general corporate purposes.

Forward-Looking Statements: All statements, other than statements of historical fact, set forth in this news release, including without limitation, assumptions and statements regarding future plans, expenditures, operations and objectives of Alston are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by Alston at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

For further information, please contact:

Don K. Umbach, President
Telephone: [phone]
Email: [e-mail]

Or

Troy Winsor, VP Business Development

Telephone: [phone]

Email: [e-mail]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.