Canadian Spirit Resources Inc.

Canadian Spirit Resources Inc.

March 11, 2005 16:32 ET

Canadian Spirit Resources Closes Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANADIAN SPIRIT RESOURCES INC.

TSX VENTURE SYMBOL: SPI

MARCH 11, 2005 - 16:32 ET

Canadian Spirit Resources Closes Private Placement

CALGARY, ALBERTA--(CCNMatthews - March 11, 2005) - Canadian Spirit
Resources Inc. ("CSRI" or the "Company") (TSX VENTURE:SPI) is pleased to
announce that with the consent of the TSX Venture Exchange, it has
closed a private placement issuing 1,341,696 Units at a price of $6.75
Unit for total gross proceeds of $9,056,448.00. Each Unite consists of
one common share in the capital of the Company and one-half a Share
Purchase Warrant. Each whole Warrant will entitle the holder to purchase
one additional share of the Company for one year at an exercise price of
$8.00 per share. The offering was approved by the Board of CSRI.

Proceeds of the private placement will be used to fund a portion of the
Company's planned pilot production project and additional evaluation
work at Farrell in Northeastern British Columbia and for general
corporate purposes.

Finders' fees of $189,014.18 in cash will be paid in conjunction with
the private placement.

The shares and any shares issued upon exercise of the Warrants shall be
subject to a four month hold period expiring July 12, 2005.

As a result of the share issuance referred to above, there will be a
total of 23,816,582 common shares of CSRI outstanding.

CSRI is a natural resources company pursuing the exploration and
development of unconventional gas opportunities with a focus on the
natural gas from coal ("NGC", also referred to as coalbed methane or
"CBM") sector of the energy industry.


On behalf of the Board of Directors,

Canadian Spirit Resources Inc.

"Phil Geiger"

Phillip D.C. Geiger, President & COO

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Canadian Spirit Resources Inc.
    Phil Geiger
    (403) 539-5005
    (403) 262-4177 (FAX)
    Email: phil.geiger@csri.ca
    or
    Canadian Spirit Resources Inc.
    Don Gardner
    (403) 539-5005
    (403) 262-4177 (FAX)
    Email: don.gardner@csri.ca
    Website: www.csri.ca
    The TSX Venture Exchange has neither approved nor disapproved the
    information contained herein and does not accept responsibility for the
    adequacy or accuracy of this release.