Canadian Spirit Resources Inc.
TSX VENTURE : SPI

Canadian Spirit Resources Inc.

December 17, 2007 06:00 ET

Canadian Spirit Resources Inc. Announces Approval of Additional Schemes at Farrell Creek, B.C.

CALGARY, ALBERTA--(Marketwire - Dec. 17, 2007) - Canadian Spirit Resources Inc. ("CSRI" or the "Company") (TSX VENTURE:SPI) is pleased to announce that it has obtained government approval for two additional experimental schemes in the Company's Farrell Creek project area in northeast British Columbia. These schemes cover a total of nine sections of Gething Formation rights on the eastern portion of its holdings - five sections of lands originally acquired by CSRI and an additional four sections in which CSRI has now acquired a 100% working interest from another energy company, subject to a non-convertible royalty. Each of these experimental schemes will require the drilling of a well by October 2008 for the company's interest in the lands to be further extended. Subject to Board and regulatory approvals, it is the Company's intention to drill these commitment wells as part of its 2008 development drilling program.

On July 31, 2007 the Government of British Columbia announced a Net Profit Royalty Program to primarily encourage development of unconventional gas (coalbed, shale and tight sand gas) or remote conventional gas resources in the province. This program, with low initial royalty and capital recovery features, will significantly enhance the economic threshold of unconventional natural gas projects such as Farrell Creek and is expected to result in accelerated capital investment in the province. Applications for approval under this program are expected to be accepted beginning in 2008. The Company believes that the Farrell Creek project will qualify under this program which has been used in the development of the Company's Farrell Creek economic model. A summary of the economics of the Farrell Creek project can be found on the Company's website under www.csri.ca "Investor Relations" - Corporate Presentation.

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 resource play, assembled a unique, high 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.

Phillip D.C. Geiger, President & Chief Operating Officer

OTC Bulletin Board Symbol (Foreign) "CSPUF"

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.

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