Southern Pacific Resource Corp.
TSX VENTURE : STP

Southern Pacific Resource Corp.

January 25, 2007 14:00 ET

Southern Pacific Announces $5,100,000 Flow Through Financing

CALGARY, ALBERTA--(CCNMatthews - Jan. 25, 2007) - Southern Pacific Resource Corp. ("Southern Pacific" or the "Corporation") (TSX VENTURE:STP) is pleased to announce that it intends to complete a non-brokered private placement for up to $5,100,000. The private placement is expected to consist of up to 4,250,000 units. The units will be priced at $1.20 per unit. Each unit will consist of one common share of Southern Pacific issued on a flow through basis and one half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share at any time for a period of 12 months following the closing date at a price of $1.50 per common share. The private placement is expected to close on or about February 15, 2007.

The proceeds of the private placement will be used for completion of the second stage of evaluation and development drilling. The second stage of drilling was previously announced on January 22, 2007. It is anticipated that this drilling will commence in mid February.

About Southern Pacific

The Corporation is active in the exploration in the prolific SAGD Leismer South Oil Sands Assets Area of Alberta. The Corporation holds and 80% interest in 25 contiguous sections (16,000 acres) in Townships 75 - 76, which is approximately 120 kms south of Fort McMurray. The Corporation is completing its first winter of evaluation work on the sections.

Additional information on the Corporation and the project can be found on its website www.shpacific.com

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

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