Canada Energy Partners Inc.

Canada Energy Partners Inc.

March 29, 2007 08:30 ET

Canada Energy Partners Inc. Announces $5,000,000 Non Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 29, 2007) - Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX VENTURE:CE) is pleased to announce a non-brokered private placement (the "Offering") to raise gross proceeds to the Company of up to $5,000,000 by the issuance of up to 5,000,000 common shares of the Corporation at a price of $1.00 per common share.

The Company has agreed to pay a finders fee in connection with this private placement by way of a cash commission equal to 6% of the gross proceeds from the Offering and warrants exercisable into a number of common shares equal to 6% of the number of common shares sold. Each warrant will entitle the holder to acquire one common share of the Company at any time within twelve (12) months from the closing date at a price of $1.00 per share.

The proceeds from the private placement will be used for the acquisition of the additional working interest in the Peace River Project as announced in the Company's March 26, 2007 news release and for general corporate purposes.

Further, the Company has engaged Chesbro Capital Corp., an arms length corporation, to provide management, business development and consulting services to the Company. The Chesbro agreement has a term of 12 months and includes consulting fees of CDN $6,000 per month, reimbursement of reasonable expenses and 350,000 stock options exercisable at $1.00 which were previously announced on March 26, 2007. The agreement is subject to regulatory approval.

On behalf of the Board of Directors of Canada Energy Partners Inc.

John Proust, Director

Forward-looking statements: This document may contain statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Act of 1995.

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

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