Canadian Spirit Resources Inc.
TSX VENTURE : SPI
OTC Bulletin Board : CSPUF

Canadian Spirit Resources Inc.

June 20, 2008 17:55 ET

Canadian Spirit Resources Inc. Amends Private Placement

CALGARY, ALBERTA--(Marketwire - June 20, 2008) - Canadian Spirit Resources Inc. ("CSRI" or the "Company") (TSX VENTURE:SPI) (OTCBB:CSPUF) announces that further to its news release of June 12, 2008 announcing concurrent, non-brokered private placements of units and flow-through shares, the Company proposes to increase the number of units offered under this private placement subject to TSX Venture Exchange approval.

The Company now proposes to issue up to 2.5 million units ("Units") at a price of C$1.05 per Unit. Each Unit will consist of one Common Share and one-half of one Share Purchase Warrant ("Warrants"). Each whole Warrant will entitle the holder to purchase an additional Common Share of the Company for eighteen months at an exercise price of C$1.40 per share.

The Company also proposes to issue up to 400,000 flow-through shares at a price of C$1.20 per share ("Flow-through Shares"). The Flow-through Shares issued pursuant to this placement will entitle, subject to various income tax considerations, Canadian investors to certain tax benefits. The 2008 deductions to be renounced to purchasers of the Flow-through Shares will be Canadian Development Expenses.

The placement of Units and Flow-through Shares is expected to close on or about June 26, 2008.

The Company may pay a finder's fee of up to 6 percent in cash, excluding subscriptions by directors, officers or employees of the Company.

All the securities issued pursuant to the private placements will be subject to a four month restricted resale period.

Proceeds of the proposed private placement will be used to further the Company's planned drilling program in the Gething Formation at Farrell Creek, British Columbia and for general corporate purposes.

This news release does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of the securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the Company and management, as well as the financial statements.

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. The mission of the Company is to develop 1 tcf of natural gas from unconventional resource plays in western Canada. The Company has identified a 1.8 tcf discovered resource play (see News Release dated May 8, 2007), assembled a unique, 100 percent working interest land position in approximately 40,000 gross acres in northeast British Columbia and is currently evaluating the productive capability of its principal resource property at Farrell Creek, British Columbia.

On behalf of the Board of Directors,

CANADIAN SPIRIT RESOURCES INC.

Don Gardner, Chief Executive Officer

The corporate information contained in this news release may contain forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by CSRI at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently there is no representation by CSRI that actual results achieved during the forecast period will be the same in whole or in part as those forecast.

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

Contact Information

  • Canadian Spirit Resources Inc.
    Don Gardner
    (403) 539-5005
    (403) 262-4177 (FAX)
    Email: don.gardner@csri.ca
    or
    Canadian Spirit Resources Inc.
    Phil Geiger
    (403) 539-5005
    (403) 262-4177 (FAX)
    Email: phil.geiger@csri.ca