Reef Resources Ltd.
TSX VENTURE : REE

Reef Resources Ltd.

December 15, 2009 14:37 ET

Reef Resources Ltd. Issues Bi-Weekly Default Status Report Subsequent to Granting of Management Cease Trade Order (MCTO)

CALGARY, ALBERTA--(Marketwire - Dec. 15, 2009) –

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES.

Reef Resources Ltd. ("Reef" or the "Corporation") (TSX VENTURE:REE) announces that subsequent to grant of Management Cease Trade Order ("MCTO") by Alberta Securities Commission (ASC) as announced on December 2, 2009, the Corporation is pleased to issue the Bi-Weekly Default Status Report pursuant to section 4.4 of National Policy 12-203, ("NP 12-203") the "Alternative Information Guidelines", as follows:

  1. There have been no material changes to the information contained in the Default Announcement.
  2. The Issuer has not been delayed in fulfilling its stated intentions with respect to satisfying the provisions of the Alternative Information Guidelines for its first status report.
  3. There has been no "specified default" (as that term is defined in NP 12-203) subsequent to the default which is the subject of the Default Announcement, and no such default is anticipated by the Issuer.
  4. There is no other material information concerning the affairs of the Issuer that has not been generally disclosed since the Default Announcement was issued.

The MCTO was requested when Reef determined it would not be able to file its annual audited financial statements, management's discussion and analysis and CEO and CFO certificates for the year ended July 31, 2009, (collectively, the "2009 Annual Audited Financial Statements") by the filing deadline of November 27, 2009 as prescribed by National Instrument 51-102 - Continuous Disclosure Obligations ("NI 51-102").

The Corporation has held off on completing its audit due to ongoing negotiations to restructure the ownership of its key asset in Ontario in order to fund and further develop its Ontario oil and gas properties. The negotiations to restructure include a cash infusion into the Company and a part of these funds is for the remuneration of the auditor. With arrangement for funds now at near completion, Reef anticipates that the audit will commence shortly and 2009 Annual Audited Financial Statements can be completed and filed on or before 29 January 2010.

Under the approved MCTO the general investing public will still be able to trade Reef shares, however, the Corporation's Chief Executive Officer and Chief Financial Officer will not be able to trade Reef shares.

Until Reef completes the filing of the 2009 Annual Audited Financial Statements, Reef will comply with the alternative information guidelines set out in National Policy 12-203, part 4.3 and 4.4. The guidelines, among other things, require Reef to issue bi-weekly default status reports by way of a news release so long as the 2009 Annual Audited Financial Statements have not been filed.

About Reef Resources Ltd.
Reef was formed to participate in the exploration, development and production of conventional crude oil and natural gas reserves in Ontario, Alberta and Saskatchewan. The Company's strategy is to build shareholder value through internally generated exploration and development drilling as well as through selective acquisitions and mergers.

Forward Looking Statements — This news release contains certain forward-looking statements, which include assumptions with respect to raising funds and future capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither 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 release.

Contact Information

  • Reef Resources Ltd.
    Arnie Hansen
    President & CEO
    (403) 251-9447
    (403) 251-9553 (FAX)
    or
    Reef Resources Ltd.
    Tariq S. Malik CA
    CFO
    (403) 975-6242
    (403) 251-9553 (FAX)