TORONTO, ONTARIO--(CCNMatthews - Aug. 29, 2006) - Westchester Resources Inc. (TSX VENTURE:WSR) ("Westchester" or the "Company"), today reported its financial results for the first quarter of fiscal 2007, ended June 30, 2006.

The Company reported net revenue of $112,327, production and operating costs of $85,033, and depletion and depreciation of $162,931 versus net revenue of $16,611 in the same period in 2005. Revenue for the three-month period in 2006 includes interest income of $8,507. For the comparable period in 2005, revenue consisted solely of interest income. In the first quarter of fiscal 2007, general and administrative (G&A) expenses were $97,153, compared to $95,852 in the same period last year.

For the quarter ended June 30, 2006, Westchester reported a net loss of $290,803 ($0.01 per share) versus a net loss of $99,741 ($0.00 per share) in the same period in 2005.

As at June 30, 2006, Westchester reported cash and cash equivalents of $1,362,996 and working capital of $1,400,630 versus cash and cash equivalents of $24,824 and a working capital deficit of $202,905 at March 31, 2006. During the quarter, Westchester raised gross proceeds of $2,575,000 through a private placement and $1,521,139 through the exercise of warrants. Proceeds from the private placement and warrant exercise were used to fund the drilling program in the Daly Field in Manitoba and for general corporate purposes.

As previously announced by its operator on August 15, 2006, the drilling rig used for the recent drilling in the Daly Field has been released for a period of approximately two months. The break in drilling will provide the operator additional time to continue the acid treatment program, activate the disposal well, and establish a production profile for the area. Once the impact of the water disposal well has stabilized the production rates, the production results from the wells that have been drilled will be reported.

Westchester also announced that it elected not to participate in the drilling of the disposal well.

Comparative summary results for the three-month period ended June 30, 2006, June 30, 2005 and for the year ended March 31, 2006 are shown in the following tables:

Consolidated Summary Balance Sheet as at:


------------------------------------------------------------------------
                                          June 30, 2006   Mar. 31, 2006
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                                             (unaudited)       (audited)
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Assets
------------------------------------------------------------------------
 Cash and current assets                $     2,040,338 $       180,230
------------------------------------------------------------------------
 Oil and gas properties                       4,143,163       2,100,950
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Total Assets                            $     6,183,501 $     2,281,180
------------------------------------------------------------------------


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Liabilities and stockholders' equity
------------------------------------------------------------------------
Total current liabilities               $       639,708 $       383,135
------------------------------------------------------------------------
Asset retirement obligation                     120,485          65,661
------------------------------------------------------------------------
Stockholders' equity                    $     5,423,308 $     1,832,384
------------------------------------------------------------------------
Total liabilities and stockholders'
 equity                                 $     6,183,501 $     2,281,180
------------------------------------------------------------------------



Consolidated Summary Statements of Operations


------------------------------------------------------------------------
                                          June 30, 2006   June 30, 2005
------------------------------------------------------------------------
                                             (unaudited)     (unaudited)
------------------------------------------------------------------------


------------------------------------------------------------------------
 Revenue                                $       112,327 $        16,611
------------------------------------------------------------------------
 Expenses                                       403,120         116,352
------------------------------------------------------------------------
Net loss                                        290,803          99,741
------------------------------------------------------------------------
Net loss per share                      $          0.01 $          0.00
------------------------------------------------------------------------


------------------------------------------------------------------------
Weighted average number of common
 shares outstanding                          49,638,018      38,228,263
------------------------------------------------------------------------

For complete financial statements, please refer to the Company's filings with SEDAR at www.sedar.com

Westchester Resources Inc. is an independent oil and gas exploration and development company. Westchester's operations are focused in North America. The Company's shares trade on the TSX Venture Exchange under the symbol "WSR".

Forward Looking Statements -- Certain information regarding Westchester set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Westchester's control, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of reserve estimates, currency fluctuations and exploration risk. In addition, there can be no assurance that the flow rate estimated herein can be maintained with the testing conducted. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.


The TSX VENTURE EXCHANGE does not accept responsibility for the accuracy or adequacy of this press release.

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