SOURCE: Canary Resources Inc.

September 27, 2007 09:35 ET

Canary Resources Begins Commercial Production of Coal-Bed Methane Gas Into Southern Star Central Gas Pipeline

STILWELL, KS--(Marketwire - September 27, 2007) - Canary Resources Inc. (PINKSHEETS: CYRR) ("Canary") announces that it has commenced commercial gas production from ten wells in the Eastern Forest City Basin of Kansas and Missouri. Canary holds a 100% working interest in two of the wells, and a 50% working interest in eight wells which are part of an agreement announced in May 2007 with K C Clean Energy LLC. Canary operates all ten wells. The wells are connected to Canary's wholly owned interconnect into the 20 inch Southern Star Central Gas Pipeline. Canary is presently adding infrastructure to connect several additional completed gas wells, presently shut-in pending connection to Canary Pipeline, Inc's collection system, in the immediate vicinity of the interconnect. Sample analyses confirmed Canary's gas is of pipeline quality, allowing gas flows into the Southern Star Central Gas Pipeline to commence.

Initial indications from the ten wells show commercial flow rates that exceed expectations. Canary will monitor and adjust the computerized pump control systems to maximize stream levels to produce gas and water at optimal efficiency. Drilling, completion and hook-up of additional wells are underway, which will permit Canary to start realizing gas revenues along with transportation fees from wholly owned Canary Pipeline, Inc. Canary expects continuous commercial sales of coal-bed methane gas now that production has commenced.

Canary Resources Inc. is independent Oil and Natural Gas Company engaged in the acquisition, exploitation, production and development of oil and natural gas properties in Johnson and Miami Counties, Kansas, and in Bates and Cass Counties, Missouri, for which it is the operator.

Portions of this document include "forward-looking statements," which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this document are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential" and similar expressions. Actual results may vary materially from management's expectations and projections expressed in this document. Certain factors that can affect the Company's ability to achieve projected results include, among others, production variances from expectations, uncertainties about estimates of reserves, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, environmental risks, drilling and operating risks, risks related to exploratory and development drilling, competition, government regulation and the ability of the Company to implement its business strategy.

Copyright 2007. All rights reserved Canary Resources Inc.

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