MOONCOR NEGOTIATES EXTENSION OF CONVERTIBLE DEBENTURES

MOO: TSX Venture Exchange

CALGARY, Dec. 8 /CNW/ - Mooncor Oil & Gas Corp. ("Mooncor") (TSXV:MOO) is pleased to announce that it has negotiated an extension of its two convertible debentures (the "Debentures"), initially disclosed upon issuance on September 27, 2007 and October 1, 2007, and on April 13, 2010 when they were amended. The Debentures mature on December 11, 2010 and each have $510,719 outstanding inclusive of interest as of the date hereof.

Pursuant to an extension agreement the maturity date of the Debentures has been extended from December 11, 2010 to June 11, 2011. In consideration for the extension, Mooncor has agreed to extend the expiry date of the 500,000 warrants (the "Compensation Warrants") previously issued to each Debenture holder from December 11, 2010 to June 11, 2011. Each Compensation Warrant entitles the holder thereof to purchase one common share (a "Share") in the capital of Mooncor at $0.225 per Share.

The Debentures accrue interest at 10% per annum and are payable on conversion or maturity, or in advance without penalty. The Debentures are convertible into units ("Units") of Mooncor at $0.225 per Unit. Each Unit shall consist of one Share and one-half of one warrant, with each whole warrant entitling the holder thereof to purchase one Share at $0.225 per Share until June 11, 2011.

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 negotiations for a joint venture partner 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]