The Company
	Pinnacle Energy, Inc., founded in 2006, is a C Corporation, registered in the state of Nevada. Pinnacle Energy is publicly traded under the OTC Bulletin Board symbol PENC. The company was formerly named Gas Salvage Corp., and completed a three-for-one forward stock split in August 2008, when it became Pinnacle Energy, Inc.

The Glencoe Prospect

Pinnacle currently holds leases in Pawnee County, Oklahoma, in the "Glencoe" field. The Glencoe Prospect covers approximately 875 productive acres in the Upper Cleveland sand and 1,720 acres in the Lower Cleveland sand of Pawnee County, Oklahoma, USA. A recent reserve report for this field suggests that proven, probable and possible reserves of up to 214,000 barrels of oil and 839,000 Mcf of natural gas may be available for extraction by Pinnacle Energy. Potential drilling plans through 2011 include as many as 43 wells within the Upper and Lower Cleveland sands.

Peppercreek 1

In addition, the company has secured rights to additional acreage adjacent to the company's Glencoe Prospect in Pawnee County, Oklahoma, USA. Pinnacle has the option to participate in up to a 25% working interest in the new 2,000 acre field, named Peppercreek 1. The property lies adjacent to the productive Glencoe field, and the company believes that Peppercreek 1 extends the structural formation identified in the Glencoe property. Concurrent with operations on the existing Glencoe field, Pinnacle Energy plans to expand the current reserve report to include the newly acquired Peppercreek 1 acreage. This revised study should prove to increase the Company???s probable and possible reserves while targeting additional drill sites. Drilling operations are expected to commence in 2009.

Future Plans
	Pinnacle Energy will continue to seek out and develop new oil and gas properties to increase shareholder value and meet the needs of the global energy market.