Empire Energy Funding & Drilling Update

Empire Energy Corporation International (OTCBB:EEGC) today announced, along with its wholly owned Australian subsidiary Great South Land Minerals Ltd. (GSLM), the following business update:

Empire has entered into a Mobilisation (Move on Site) Agreement with our oil and gas drillers, Hunt Energy and Mineral Co. Australia Pty Ltd, and its principals, under which Empire will issue as security, 20,000,000 Empire shares of restricted common stock at a redemption price of USD$0.15 cents/share. These shares will be included in the registration statement that we are currently preparing. At Hunt’s option, the shares may be redeemed in part or in full and applied as payment toward the costs of drilling and mobilization of the Hunt Rig #3. Upon payment of current billings, Hunt will move on-site at Bellevue #1 to commence and finish drilling operations up to a depth of 9,200 feet (or 2,800 metres). Once the Bellevue #1 hole is completed, the rig is intended to be mobilized to the Thunderbolt #1 hole. Hunt will have the option to apply the value of the shares to the mobilization and drilling costs or accept full or part payment by Empire. Current billings total about AUD$600,000 for Hunt and an additional AUD$200,000 for transport of equipment to the site.

Proceeds of AUD$3.9m from the AUD$5M loan note between Empire and Smartwin International Limited have been utilized to transport the Hunt Energy Rig #3 to Tasmania and to complete top-hole drilling performed by local drilling contractor Spauldings to a depth of 272 metres for oil and gas within GSLM’s 15,000 sq km license area SEL 13/98 on the Bellevue #1 drill site in Tasmania’s Central Highlands. The balance currently owing under the SmartWin loan agreement of AUD$1.1m, once released, is intended to be used to pay for the mobilization and ongoing drilling costs.

The previously announced SmartWin MOU contains an exclusive option for SmartWin to commit an additional AUD$40 million and cancel the AUD$5 million note in consideration for a 50% stake in a Joint Venture with GSLM on its SEL 13/98 license area. Empire’s Denver-based US attorney has recently visited colleagues and counterparts in Hong Kong, Melbourne and Tasmania and a near-final SmartWin JV agreement has been drafted and delivered to SmartWin for review. Additional details on the company’s anticipated Joint Venture will be issued upon finalization of that agreement.

Several parties have been approached in London by Libertas Capital Group, Plc. to invest by private placement. We are currently in negotiation with prospective investors in London that may invest a sum of up to GBP 1.5 million (AUD$3,649,400 @ current AUD/GBP exchange rate of 2.4326), subject to final negotiations.

Victor Sula, Ph.D of Beacon Equity Research has completed a review and update of Beacon’s previously issued Market Analyst Report, which was released yesterday, October 30, 2008 through targeted media in the United States and internationally. This update has been posted on the Beacon (www.beaconequity.com) and Empire (www.empireenergy.com) websites.

Because we expect to be drilling through coal seams in both the Bellevue #1 and Thunderbolt #1 wells, Empire is also negotiating the terms of an additional license for the Exploration of Category 4 Petroleum products such as Coal Seam Methane, pending approval of an application made recently to Mineral Resources Tasmania, the relevant Tasmanian State Government authority.

Founder and C.E.O. Malcolm Bendall said, "I am pleased to have the support of our drillers, Hunt Energy, and hope that Hunt will apply the full AUD$4,455,000 toward the drilling of Bellevue #1 and Thunderbolt #1. I am currently in London to coordinate fundraising operations with Libertas Capital Group Plc and to deliver the results of the recent RPS report, which includes an independent potential resource audit, and to report the progress of drilling to date.”

Empire Energy Corporation is an international oil and gas exploration company, focusing on developing assets in one of the world's last virgin basins and to become a leading low-cost finder of hydrocarbons. The Company is currently operating in Tasmania's central and northern basins.

This press release contains forward-looking statements based on our current expectations about our company and our industry. You can identify these forward-looking statements when you see us using the words such as "expect," "anticipate," "estimate," "believes," "plans" and other similar expressions. These forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of our ability to complete required financings and other preconditions to the completion of the transactions described herein and Empire's ability to successfully acquire reserves and produce its resources among other issues. We undertake no obligation to publicly update any forward-looking statements for any reason, even if new information becomes available or other events occur in the future. We caution you not to place undue reliance on those statements. For a more detailed discussion of risks and other factors related to Empire Energy Corporation Int'l, please refer to its 10-KSB and 10 Q reports filed with the U.S. Securities and Exchange Commission.