Coastport Capital Inc.
TSX VENTURE : CPP
FRANKFURT : C1J

Coastport Capital Inc.

April 12, 2010 09:00 ET

Coastport to Acquire Private Oil & Gas Company to Increase Core Land Holdings

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 12, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

David Patterson, President of Coastport Capital Inc. (TSX VENTURE:CPP)(FRANKFURT:C1J), reports that it has entered into an agreement to acquire all of the issued and outstanding shares of Prairie Exploration Inc. ("Prairie"), a privately held oil and natural gas company, for a total purchase price of 20 million common shares (the "Acquisition").

Prairie has varying interests in 20,160 gross acres (3,643 net acres) in the Western Canadian Sedimentary Basin, including holdings in several areas where Prairie and Coastport have common interests. In Coastport's Deep Valley Grand Prairie Core Area, the acquisition will increase Coastport's working interest in certain P&NG rights to 100% in 10 sections of land and to 50% in 4 sections of land. These lands are prospective for Triassic and Bluesky petroleum and natural gas utilizing multi-stage horizontal fracing technology, which is consistent with Coastport's approach of targeting high impact liquid rich natural gas reserves.

In Coastport's Michchi Penhold Core Area, the acquisition will increases Coastport's working interest in 2 producing locations to 44% and 37.6% respectively, and will increase Coastport's working interests in certain P&NG rights in this core area to 8,000 gross acres (1,434 net acres).

In addition, Coastport and Prairie are planning drilling operations on lands recently acquired at Alberta Crown Land Sales. Two horizontal Bluesky wells are being planned for July and August of this year with one situated in the Ansell area and the other in the Grand Prairie area. Both wells will utilize multi-stage fracture stimulation technology.

At Valhalla, on acreage currently owned 100% by Prairie, it is anticipated that a vertical well will be re-entered and a completion attempt undertaken on the Bluesky interval. Plans are also being made for the drilling of a horizontal Montney well at Deep Valley, in Northwest Alberta, in December of this year to coincide with weather conditions favourable for drilling.

Under the terms of a pre-acquisition agreement with Prairie (the "Agreement"), Coastport will make an offer (the "Offer") to acquire all of Prairie's outstanding Class "A" common voting shares and Class "B" common voting shares (collectively, the "Prairie Shares") for consideration of 20 million common shares of Coastport. The Offer is subject to certain conditions, including the acquisition by Coastport of not less than 90% of the outstanding Prairie Shares (on a diluted basis) and the receipt of all regulatory approvals, including the approval of the TSX Venture Exchange ("TSXV"). The board of directors of Prairie has unanimously determined that the Offer is in the best interests of Prairie and its shareholders. Prairie and Coastport have directors in common, and as such the Acquisition is a non-arms length transaction.

The Agreement provides for the payment of a non-completion fee in the amount of $70,000 in certain circumstances. Prairie has agreed not to solicit further offers or initiate discussions or negotiations with any third party concerning the sale of Prairie, subject to fiduciary obligations. The Offer is expected to be mailed to all Prairie shareholders as soon as practicable.

The closing of the Acquisition is expected to occur in May 2010, subject to certain conditions including all necessary regulatory approvals.

FORWARD-LOOKING INFORMATION

This press release contains certain statements or disclosures relating to the Company that are based on the expectations of the Company as well as assumptions made by and information currently available to the Company which may constitute forward-looking information under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that the Company anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking information. In some cases, forward-looking information can be identified by terms such as "forecast", "future", "may", "will", "expect", "anticipate", "believe", "potential", "enable", "plan", "continue", "contemplate", "pro-forma", or other comparable terminology.

In particular, this press release makes reference to the Acquisition. Readers are cautioned that certain conditions must be met before the Acquisition can proceed. Such conditions include the receipt of all necessary regulatory approvals, including the approval of the TSXV. There is no assurance that the Acquisition can be completed as scheduled or at all.

As such, many factors could cause the performance or achievement of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements.

ON BEHALF OF THE BOARD OF COASTPORT CAPITAL INC.

David Patterson, Chief Executive Officer and President

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

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