Reef Resources Ltd.

Reef Resources Ltd.

December 31, 2007 17:59 ET

Reef Resources Enters Into Keg River, B.C. Farm in Agreement

CALGARY, ALBERTA--(Marketwire - Dec. 31, 2007) - Reef Resources Ltd. ("Reef") is pleased to announce that it has entered into a farm-in agreement with Unitech Energy Inc. for 6.75% WI of the high impact Keg River prospect in north eastern British Columbia (the "Prospect"). The terms of the Farm-in are that Reef will pay 7.5% of the capital expenditures for the drilling and the completing of the C-B67-K/9-I-14 well to earn a 6.75% WI in this well plus 20 blocks of B.C. Farm-in lands with natural gas rights below the Slave Point. In addition, Reef will have an option to participate in 12 blocks with rights below the Jean Marie except natural gas in the Slave Point, 15 blocks with rights below the base of the Slave Point and 4 blocks with rights below the base of the Jean Marie.

The test well on the Prospect, which was drilled and cased in the Spring of 2007, is now ready for completion. The operator has indicated that the completion will commence early in January, 2008.

About Reef Resources Ltd.

Reef Resources is a junior oil and gas company with existing properties in three Canadian provinces. Please visit Reef's website at Reef recently closed its $1.53 million Initial Public Offering prospectus financing. Shares of Reef are not currently listed for trading on the TSX Venture Exchange but application for listing is underway and is expected to be completed in January 2008. The symbol REE has been reserved for the Company.

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, which include but are not limited to risks inherent in the oil and gas industry, regulatory and economic risks, and risks associated with the company's ability to implement its business plan. Reef undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

The TSX Venture Exchange has not reviewed, and does not accept responsibility for, the adequacy or accuracy of this release.

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