SOURCE: Modern Energy Corp.

November 06, 2007 12:53 ET

Modern Energy Corp. Sells Oil and Gas Interests to Grand Pacaraima Gold Corp.

Modern Energy Shareholders to Receive 100 Shares of Grand Pacaraima Stock for Each Share of Modern Energy in Special Dividend

LOS ANGELES, CA--(Marketwire - November 6, 2007) - Modern Energy Corporation (PINKSHEETS: MDNO) announced today the sale of the company's oil and gas interests to Grand Pacaraima Gold Corporation for 120 million common shares of GPGD.

Modern Energy, which has 1.2 million common shares outstanding after a recent capital restructuring, will distribute all 120 million common shares of GPGD in a special dividend to all MDNO shareholders on the basis of 100 GPGD shares for every MDNO common share held as of the record date of November 23, 2007.

The sale involves all of MDNO's ownership of a subsidiary that is a productive oil and gas company. Through this 80% owned subsidiary, MDNO has a revenue-sharing agreement with one of the largest independent producers of natural gas in the U.S. to drill up to six additional wells on the property in Oklahoma. The currently undisclosed partner has completed a test well, which has the potential to produce more than 300,000 cubic feet of gas per day. The company's partner is in the process of completing the first well to initiate production and generate revenue. The company believes that at least five other productive wells could be drilled on the property, under the same revenue-sharing agreement. Modern Energy Corp. is also selling its 65% interest in the oil and gas production from the Loomis #1 well, which is now producing over 600,000 cubic feet of gas per month with the potential to increase production in the future.

Modern Energy will retain its wholly owned subsidiaries on the island of Mindanao in the Philippines, which have mineral rights and agricultural land interests. The mineral rights have the potential for economically viable mining of copper, gold, silver and other minerals. The agricultural land interests involve 250,000 hectares (over 600 thousand acres) of agricultural land suitable for growing palm oil and jatropha, feedstocks for the production of biodiesel.

"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This information contains forward-looking statements that involve risks and uncertainties. These statements are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause Modern Energy Corporation's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, development costs and risks, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.

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