Selected Highlights for the Second Quarter of 2009 and Period Subsequent to June 30, 2009

    * Entered into three oil and gas participation agreements with    Houston Energy L.P.  * Drilled three wells with Houston Energy L.P., two wells deemed    commercially viable, one well deemed non-productive.  * Production from successful wells expected to come on line 3rd and    4th quarters 2009.  * Initiated geothermal temperature gradient drilling program with    Standard Steam Trust, LLC.  * Acquired 22,033 acres of additional geothermal leases with Standard    Steam Trust, LLC.  * Revenues for the six months and quarter ended June 30, 2009    increased by $2,329,000 $1,065,000, respectively over the same    periods of 2008. 

Conference Call

The Company has scheduled a conference call to update shareholders and analysts on the Company's recent operational progress and to provide a corporate update.

Second Quarter Operations and Corporate Update Conference Call

      When:  Wednesday August 12th at 10:00 AM MST (12:00 PM EST).     Dial-In Number:  (877) 856-1958 (within U.S. and Canada),    (719) 325-4768 (International).     Replay Number:  (888) 203-1112 (within U.S. and Canada),    (719) 457-0820 (International).     ID Number:  3184454.  The replay will be available starting at    approximately 1:00 PM MST (3:00 PM EST) and will be available for 3    days through Midnight, Friday, August 14th.     Webcast:  Investors are also invited to listen to a live and/or    archived webcast of U.S. Energy Corp.'s quarterly conference call    at http://investor.usnrg.com/events.cfm.  The webcast replay will    be available for one year. 

To view the Company's Financial Statements and Management's Discussion and Analysis, please see the Company's Second Quarter 2009 10-Q Filing which is available at www.sec.gov and www.usnrg.com.