Allied Resources’ Net Income Increases 73% Year over Year

Allied Resources, Inc. (OTCBB:ALOD) (“Allied”), an independent oil and gas producer, posted year over year increases in net income and net revenue, despite the tumultuous downward trend in energy prices throughout the later months of 2008.

Net income for the twelve months ended December 31, 2008 increased to $251,961 from $145,722 for the comparative period ended December 31, 2007, an increase of 73%.

Net revenue for the twelve months ended December 31, 2008 increased to $1,216,908 from $915,595 for the comparative period ended December 31, 2007, an increase of 33%.

“Although the comparative annual results are worthy of comment, near-term results going forward are not expected to perform in the same way,” commented Ruairidh Campbell, Allied’s chief executive officer. “More encouraging is the prospect of improving long-term results by purchasing distressed oil and natural gas properties directly from banks and leasehold owners who are affected by the current malaise. Our cash position enables us to consider properties today that might otherwise have been unavailable to us before the fall in energy prices.”

About Allied Resources, Inc.

Allied is involved in the exploration, development, production, and sale of oil and natural gas derived from properties located in Calhoun and Ritchie Counties, West Virginia and Goliad, Edwards and Jackson Counties, Texas. The company currently realizes production from a total of 158 wells with non-operating working interests ranging from 3% to 75%.

Allied intends to continue to purchase non-operated oil and natural gas producing properties, to acquire oil and gas leases for operations, and to implement improved production efficiencies on existing wells. The company’s criteria for purchasing oil and natural gas producing properties are defined by short-term return on investment and long-term revenue growth. The company’s criteria for acquiring oil and natural gas leases are predicated on a proven record of historical production and the potential for development.

Allied also intends to evaluate exploration opportunities that may exist within the Marcellus Shale formation underlying its oil and natural gas interests in Ritchie County, West Virginia. The Marcellus Shale has been identified under much of Pennsylvania, Ohio, New York, and West Virginia as being a major reservoir for natural gas recovery. Outside drilling in Ritchie County has indicated successful rates of recovery and the company’s own open-hole well logs indicate a potentially productive Marcellus Shale zone at a depth of 6,000 feet.

For further investor information, please contact Ruairidh Campbell at (801) 582-9609 or visit Allied’s website at www.allied-resources-inc.com

Forward Looking Statements

A number of statements contained in this press release are considered forward-looking statements. These forward-looking statements involve a number of risks and uncertainties including the recovery of oil and gas resources, prices paid for oil and natural gas, exploration results if any, the depletion of existing reserves, and the ability to secure financing if required to maintain or expand operations. The actual results Allied may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. Allied encourages the public to read the information provided here in conjunction with its most recent filing on Form 10-K. All of Allied's public filings may be viewed at www.sec.gov.