CALGARY, ALBERTA--(Marketwire - Dec. 31, 2010) - NAL Energy Corporation ("NAL" or the "Corporation") is pleased to announce the completion of the previously announced conversion of NAL Oil & Gas Trust (the "Trust") to a corporation pursuant to a plan of arrangement under the Business Corporations Act (Alberta). Pursuant to the conversion, all outstanding trust units of the Trust have been exchanged for common shares in the capital of the Corporation on a one-for-one basis. In addition, all of the covenants and obligations for the convertible debentures of the Trust have been assumed by the Corporation.

All former registered trust unitholders of the Trust are encouraged to submit a properly completed and duly executed letter of transmittal to receive the direct registration advice or certificate representing the common shares of NAL to which they are entitled pursuant to the conversion. Copies of the letter of transmittal can be obtained on NAL's website at http://www.nal.ca or on SEDAR at http://www.sedar.com.

The common shares and convertible debentures of NAL are expected to commence trading on the Toronto Stock Exchange on or about January 6, 2011, under the symbols "NAE", "NAE.DB" and "NAE.DB.A", respectively. Concurrently, the trust units of the Trust will be delisted from the Toronto Stock Exchange.

ABOUT NAL

NAL Energy Corporation provides a total return to its investors which combines income with modest growth in the Canadian upstream oil and gas industry. The Corporation generates returns for its shareholders by pursuing a strategy of acquiring, developing, producing and selling crude oil, natural gas and natural gas liquids from pools in southeastern Saskatchewan, central Alberta, northeastern British Columbia and Lake Erie, Ontario.

Contact Information:

NAL Energy Corporation

Clayton Paradis

Manager, Investor Relations

403.294.3620 or Toll Free: 888.223.8792

403.515.3407 (FAX)

investor.relations@nal.ca

http://www.nal.ca