Canadian Phoenix Resources Corp.
TSX VENTURE : CPH

Canadian Phoenix Resources Corp.

March 13, 2009 16:00 ET

Canadian Phoenix Resources Corp.: New Credit Facility, Release From Escrow & Legal Settlement

CALGARY, ALBERTA--(Marketwire - March 13, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

CANADIAN PHOENIX RESOURCES CORP. (TSX VENTURE:CPH) ("Canadian Phoenix" or the "Company") provides the following updates:

NEW CREDIT FACILITY

Canadian Phoenix has negotiated a $13 million credit facility with a major financial institution. No amounts have been drawn on the facility. The facility bears interest at the bank's prime rate plus one percent per annum payable monthly and is secured by a $25 million debenture floating charge over all of the assets of each of the Company and Serrano Energy Ltd. ("Serrano"), a private company owned 56.8% by Canadian Phoenix. Canadian Phoenix and Serrano have provided cross guarantees to each other to secure the credit facility such that if either party defaults under the facility, the other party accepts the full obligation. The next review date is scheduled for May 31, 2009.

RELEASE FROM ESCROW

Canadian Phoenix also announces that the escrow conditions have been satisfied whereby the $1.75 million that the Company posted in escrow in September 2008 in support of its agreement to indemnify Marble Point Energy Ltd. ("Marble Point") for any withholding taxes payable by non-resident former holders of Marble Point preferred shares on the redemption of such shares will be unconditionally released with interest and returned to Canadian Phoenix. Please refer to Canadian Phoenix's news release of September 22, 2008 for additional information regarding the transaction with Marble Point.

LEGAL SETTLEMENT

As previously disclosed in the Company's financial statements, the Company was involved in a legal suit with an industry partner. The companies have negotiated a settlement to the claim whereby Canadian Phoenix paid $1.1 million to the industry partner and took back the partner's 50% working interest in the lands in the Sarcee area of Alberta. The companies have each signed mutual releases.

About Canadian Phoenix Resources Corp.

Canadian Phoenix is a publicly-traded junior oil and gas exploration, development and production company with operations in Western Canada. Canadian Phoenix is pursuing a corporate strategy of being a consolidator of oil and gas assets located in the Western Canadian Sedimentary Basin. Strategic corporate acquisitions promote partnerships for the future development of acquired or targeted oil and gas assets. Canadian Phoenix's shares trade on the TSX Venture Exchange under the symbol "CPH".

FORWARD-LOOKING STATEMENTS Certain information set forth in this document, including management's assessment of the future benefits contain forward-looking statements. In particular, forward-looking statements included in this document, include but are not limited to, statements with respect to the ability of either Canadian Phoenix or Serrano to pay future obligations and future receipt of escrowed funds. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Canadian Phoenix's control, the impact of general economic conditions, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. In making such forward-looking statements Canadian Phoenix has made certain assumptions concerning the sufficiency of budgeted resources to carry out planned activities; the availability and cost of labour and service; the satisfaction of the conditions of closing of the transaction; and the receipt of applicable approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Canadian Phoenix's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Canadian Phoenix will derive therefrom. Canadian Phoenix disclaims any intention or obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise, except as required pursuant to applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Service 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

  • Canadian Phoenix Resources Corp.
    Thomas P. Stan
    President and Chief Executive Officer
    (403) 920-0040
    (403) 920-0043 (FAX)