Canadian Spirit Resources Inc.
TSX VENTURE : SPI
PINK SHEETS : CSPUF

Canadian Spirit Resources Inc.

December 31, 2007 14:37 ET

Canadian Spirit Resources Inc. Closes Flow-Through Shares Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 31, 2007) - Canadian Spirit Resources Inc. ("CSRI" or the "Company") (TSX VENTURE:SPI) (OTCBB:CSPUF) announces that subject to final approval by the TSX Venture Exchange it has closed a portion of the non-brokered private placement announced December 13, 2007. Effective December 28, 2007, the Company issued 250,000 flow-through common shares ("Flow-through Shares") at a price of $0.80 per share for gross proceeds of $200,000.00. The placement of Flow-through Shares was approved by the Board of Directors of CSRI.

The Company's offering of up to 4.8 million units ("Units") at a price of $0.70 per Unit remains open and is expected to close January 15, 2008. Each Unit will consist of one Common Share and one-half of one Share Purchase Warrant ("Warrant"). Each whole Warrant will entitle the holder to purchase an additional Common Share of the Company for two years at an exercise price of $1.00 per share.

The Flow-through Shares will entitle Canadian subscribers, subject to various income tax considerations, to certain tax benefits based on the renunciation of Canadian Development Expense deductions by the Company.

The Flow-through Shares are subject to a four month hold period expiring April 29, 2008.

Finders' fees of $11,100 in cash will be paid in respect of certain subscriptions excluding subscriptions by directors, officers and employees of CSRI. Don Gardner, Chief Financial Officer and a director of the Company participated in this portion of the private placement.

Net proceeds of this portion of the private placement will be used to fund qualifying capital expenditures at the Company's pilot production project at Farrell Creek, British Columbia during the first quarter of 2008.

As a result of the issuance of the Flow-through Shares, there are now 32,583,082 common shares of CSRI outstanding.

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. The mission of the Company is to develop 1 tcf of natural gas from unconventional resource plays in western Canada. The Company has identified a 1.8 tcf discovered resource play (see News Release dated May 8, 2007), assembled a unique, 100 percent working interest land position in approximately 40,000 gross acres in northeast British Columbia and is currently evaluating the productive capability of its principal resource property at Farrell Creek, British Columbia.

On behalf of the Board of Directors,

CANADIAN SPIRIT RESOURCES INC.

Phillip D.C. Geiger, President & Chief Operating Officer

OTC Bulletin Board Symbol (Foreign) "CSPUF"

The corporate information contained in this news release may contain forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by CSRI at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently there is no representation by CSRI that actual results achieved during the forecast period will be the same in whole or in part as those forecast.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canadian Spirit Resources Inc.
    Phil Geiger
    (403) 539-5005
    (403) 262-4177 (FAX)
    Email: phil.geiger@csri.ca
    or
    Canadian Spirit Resources Inc.
    Don Gardner
    (403) 539-5005
    (403) 262-4177 (FAX)
    Email: don.gardner@csri.ca