Canadian Spirit Resources Inc.
TSX VENTURE : SPI

Canadian Spirit Resources Inc.

December 14, 2010 09:59 ET

Canadian Spirit Resources Inc. Announces Closing of Short Form Prospectus Offering

CALGARY, ALBERTA--(Marketwire - Dec. 14, 2010) - 

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

Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI) is pleased to announce that it has closed its public offering (the "Offering") of common shares (the "Common Shares") of the Corporation by way of a short form prospectus.

The Offering was led by Wellington West Capital Markets Inc. and included Casimir Capital Ltd., Byron Securities Limited and Acumen Capital Finance Partners Limited (collectively, the "Underwriters"). An aggregate of 16,670,000 Common Shares were issued on a bought deal basis at a price (the "Offering Price") of $1.50 per Common Share for gross proceeds of $25,005,000, and the Underwriters exercised their over-allotment option to purchase an additional 780,500 common shares (the "Over-allotment Shares") of the Corporation at the Offering Price for gross proceeds of $1,170,750, thereby bringing the aggregate gross proceeds to $26,175,750.

The Corporation has paid a fee equal to 6% of the gross proceeds of the Offering to the Underwriters in connection with the sale of the Common Shares and the Over-allotment Shares.

The net proceeds of the Offering will be used to fund the exploration and development of the Corporation's Montney shale gas project and for general corporate purposes.

All Common Shares issued pursuant to the Offering are freely tradable under applicable securities laws in force in Canada.

This news release does not constitute an offer to sell, or the solicitation of an offer to buy, the Common Shares in any jurisdiction, including the United States, or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption therefrom, nor shall there be any sale of the Common Shares in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The Common Shares being offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person, absent U.S. registration or an applicable exemption therefrom.

About CSRI

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. Together with a well capitalized joint venture partner, the Corporation's principal activity is evaluating the productive capability of its Montney play in Farrell Creek, British Columbia. Information regarding CSRI is available on SEDAR at www.sedar.com or the Corporation's website at www.csri.ca.

On behalf of the Board of Directors,

CANADIAN SPIRIT RESOURCES INC.

Donald R. 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.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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