logo is available at http:// Regarding Mineral Resources Under SEC and Canadian Regulations andForward-Looking StatementsThe Company

logo is available at http:// Regarding Mineral Resources Under SEC and Canadian Regulations; andForward-Looking StatementsThe Company owns or may come to own stock in companies which are traded onforeign exchanges, and may have agreements with some of these companies toacquire and/or develop the Company's mineral properties An example is SutterGold Mining Inc. is a diversified natural resource company with interests inmolybdenum, oil and gas, geothermal and real estate assets. The Company isheadquartered in Riverton, Wyoming, and its common stock is listed on The NASDAQCapital Market under the symbol "USEG".The U.S Energy Corp. A Mcfe conversion ratio of 1 bbl of oil to 6Mcf of natural gas is based on an energy equivalency conversion method primarilyapplicable at the burner tip and does not represent a value of equivalency atthe well head.About U.S Energy Corp.U.S Energy Corp.

EnergyCorp.Note Regarding McfeIn this press release, Mcfes are derived by converting oil to gas in the ratioof one barrel of oil to six thousand cubic feet of gas (1 bbl:6 Mcf). Onethousand cubic feet of gas equivalent ("Mcfe") amounts may be misleading,particularly if used in isolation. HE believes this well has a resource potential of 4BCF and 280 MBO."We are pleased to announce another important step forward in our oil and gasinitiatives. The first well with Houston Energy should reach total depth withinthe coming weeks, and we anticipate the initial well under this participationagreement to be spud in early June," stated Keith G Larsen, CEO of U.S.

Spudding of the wellis expected to take place in June 2009 with an initial planned drilling depth ofapproximately 8,000 feet. Energy has paid sunk land costs and aprospect fee of approximately $12,900 and will be responsible for 11.11% of thecosts to drill an initial test well (ITW) to earn an 8.33% after casing point(ACP) working interest (6.1% net revenue interest). The initial commitment underthe agreement is approximately $96,000 to the casing point. ("HE") to acquire a11.11% working interest in an oil and gas prospect located in Southeast Texas.HE, a privately held independent oil and gas company exploring the Offshore Gulfof Mexico, South Louisiana, Texas Gulf Coast, West Texas, and Southeastern NewMexico will be the operator of the contract area.Under the terms of the agreement, U.S. (Nasdaq:USEG)("USE" or the "Company"), a natural resources exploration and developmentcompany with interests in molybdenum, oil and gas, geothermal, and real estateassets, today announced that it has entered into an additional ParticipationAgreement with Houston, Texas-based Houston Energy L.P.