Mooncor announces planned spinout of Ontario assets and changes to the Board
of Directors

MOO: TSX Venture Exchange

CALGARY, June 16 /CNW/ - Mooncor Oil & Gas Corp. ("Mooncor") is pleased to announce that following a strategic review of its oil and gas properties, Management has determined to spin-off its Southwest Ontario assets into DRGN Energy Inc. ("DRGN"), a wholly-owned subsidiary of Mooncor. Mooncor would then distribute DRGN shares to Mooncor shareholders. Upon completion of the above Mooncor will maintain its focus on its high impact proven Muskwa/Duvernay shale gas play at Hamburg, Alberta, and enable DRGN to independently pursue exploration and development of the Southwest Ontario assets to their full potential.

The strategy proposed would distribute to each Mooncor shareholder approximately one (1) DRGN common share for each ten (10) Mooncor shares held as of the record date for the distribution. This process would present an opportunity for enhancing shareholder value by providing Mooncor shareholders with a continuing holding of their Mooncor shares, a holding of shares of DRGN and the opportunity to acquire additional shares of DRGN as part of its proposed initial financing.

As previously announced in the January 8, 2010 press release, Mooncor had purchased 18,592 net acres within the Kent and Lambton Counties of Southwest Ontario for total land holdings of 22,425 net acres targeting both oil and gas opportunities.

Management of Mooncor believes that Ontario is an attractive exploration environment. The primary conventional plays on the lands held are the Ordovician, Silurian - Salina and Devonian. The unconventional play types are the Kettle Point Formation (Antrim equivalent) shale and the Collingwood (Utica equivalent) shale. Recent announcements from industry on the success of Collingwood shale drilling results in Michigan have demonstrated the opportunity for this promising new shale play.

Technical review of the Ontario land base has identified up to 22 oil drilling locations (firm and contingent) adjacent to two producing oil pools. In addition, Mooncor has identified 6 Silurian Pinnacle prospects.

Completion of the spin-off remains conditional on obtaining all necessary regulatory and shareholder approvals, including the approval of the TSX Venture Exchange.

Mooncor would also like to welcome its newest Board member, Alan Myers. Alan is a Chartered Accountant (United Kingdom) with over 30 years of professional and business experience and a veteran CFO of both private and public companies. Paul Duffy has left Mooncor's board to pursue other activities. Paul was pivotal in the early stages of Mooncor's history. Richard Cohen would like to personally thank Paul for his support and integrity. The whole board wishes him well in his future endeavors.

Business of Mooncor Oil & Gas Corp.

Mooncor Oil & Gas Corp. is a junior oil and gas exploration and development company. Mooncor is focusing on its shale gas opportunities with a current emphasis on its high impact proven Muskwa/Duvernay shale gas play at Hamburg, Alberta as well as structuring a spinoff of its southwest Ontario assets into a new entity.

The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although Mooncor believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, Mooncor disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.

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

For further information: Richard Cohen, Vice-President (Corporate Development), Mooncor Oil & Gas Corp., Tel: [phone], [email protected]; Jason Monaco, First Canadian Capital Corp., Tel: [phone], [email protected]