ASPEN EXPLORATION CORPORATION

2050 S. Oneida St., Ste. 208

Denver, CO 80224-2426

Telephone: (303) 639-9860

Fax: (303) 639-9863

Email: aecorp2@qwest.net

ASPEN EXPLORATION ANNOUNCES ALASKA GOLD PROJECT

For immediate release:

Denver, Colorado, January 11, 2007. Aspen Exploration Corporation (OTCBB: ASPN) with offices in Denver and Bakersfield, CA is pleased to announce the signing of a venture to explore for gold in Alaska. Hemis Corporation, with offices in Las Vegas, Nevada, and Aspen have signed an agreement whereby Hemis will provide all funding and be the operator of a venture to carry out permit acquisition and exploration for commercial quantities of gold. If such deposits are found, Hemis intends to produce and sell the gold as well as any other commercially valuable minerals that may occur with the gold. Hemis intends to commence work to obtain permits for the project this month.

At signing Aspen was paid $50,000 and will be paid this amount on each anniversary of the agreement so long as Hemis continues work in the area. The payment ceases when and if production begins. Aspen retained a 5% production royalty, which may be taken in kind or in cash as Aspen prefers. Aspen provided to Hemis exploration data assembled and gathered by Aspen over a period of several years in the 1980’s. Permits will be required before Hemis may commence work and there is no assurance such needed permits will be issued by the State of Alaska or by the Federal government.

Aspen geologists, led by R. V. Bailey, Chairman of Aspen’s board, first carried out exploration for gold in Alaska in the 1980’s, which resulted in gold discoveries at Valdez Creek (between Anchorage and Fairbanks), where placer gold was produced by a Canadian company from claims under lease from Aspen. Aspen’s effort was curtailed when the price of gold fell in the mid-1980’s. Aspen received royalty gold shipments from the Valdez Creek operations in the early 1990’s and used some of the revenue from the sale of that gold to open Aspen’s Bakersfield offices for oil and gas exploration. Aspen’s natural gas exploration efforts in California have been very successful under the direction of President Bob Cohan.

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Aspen’s stock is quoted on the OTC Bulletin Board under the symbol ASPN. For more information concerning Aspen’s gold projects contact R. V. Bailey, Vice President, in Aspen’s Denver office at (303) 639-9860. Aspen’s web page can be found at www.aspenexploration.com.

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DISCLAIMER

This news release contains information that is “forward-looking” in that it describes events and conditions which Aspen Exploration Corporation (“Aspen”) reasonably expects to occur in the future. Expectations for the future performance of the business of Aspen are dependent upon a number of factors, and there can be no assurance that Aspen will achieve the results as contemplated herein and there can be no assurance that Aspen will be able to conduct its operations or production from its properties will continue as contemplated herein. Certain statements contained in this report using the terms “may,” “expects to,” and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks which are beyond the Company’s ability to predict or control and which may cause actual results to differ materially from the projections or estimates contained herein. These risks include, but are not limited to: the possibility that the described operations (including any proposed exploration or development drilling) will not be completed on economic terms, if at all, or the estimates of reserves may not be accurate. The exploration for, and development and production of, oil and gas are an enterprises attendant with high risk, including the risk of fluctuating prices for oil and natural gas, imports of petroleum products from other countries, the risks of not encountering adequate resources despite expending large sums of money, and the risk that test results and reserve estimates may not be accurate, notwithstanding appropriate precautions. Many of these risks are described herein and in Aspen’s annual report on Form 10-KSB, and it is important that each person reviewing this report understand the significant risks attendant to the operations of Aspen. Aspen disclaims any obligation to update any forward-looking statement made herein.