Canadian Spirit Resources Inc.
TSX VENTURE : SPI
OTCBB : CSPUF

Canadian Spirit Resources Inc.

June 28, 2012 13:34 ET

Canadian Spirit Resources Inc. Announces Closing of Private Placement of Common Shares and Acquisition of 64,000 Acres of Land Prospective For Produced Water Disposal

CALGARY, ALBERTA--(Marketwire - June 28, 2012) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI) (OTCBB:CSPUF) is pleased to announce that the Corporation has closed the private placement previously announced on June 19, 2012 of a total of 14,310,000 common shares (the "Shares") at a price of C$0.30 per Share, for gross proceeds of C$4,293,000. The placement of Shares is subject to TSX Venture Exchange final acceptance.

Pursuant to the policies of the TSX Venture Exchange and to Multilateral Instrument 61-101, the private placement was classified as a "related party transaction". Alfred B. Sorensen, an executive officer and director of the Corporation, subscribed for 4,000,000 Shares and now holds 4,000,000 (4.42% of the outstanding) Shares; Donald R. Gardner, a director of the Corporation, subscribed for 80,000 Shares and now holds 1,002,828 (1.12% of the outstanding) Shares; Elmag Investments Inc., a shareholder who owns or has control and direction over more than 10% of the outstanding Shares, subscribed for 2,700,000 Shares and now holds 17,900,000 (19.77% of the outstanding) Shares; and Sheldon Inwentash jointly with Pinetree Resource Partnership, a shareholder who owns or has control and direction over more than 10% of the outstanding Shares, jointly subscribed for 2,000,000 Shares and now jointly holds 11,385,600 (12.57% of the outstanding) Shares.

Following the closing of the private placement, there are 90,548,661 common shares of the Corporation outstanding. All the securities issued pursuant to the private placement are subject to a four month restricted resale period expiring October 27, 2012.

CSRI is also pleased to advise that it has recently acquired approximately 64,000 acres (100 sections) of shallow rights land (surface to base Cadomin/Nikanassin) directly offsetting the Corporation's shallow rights land in the Farrell Creek area of northeastern British Columbia. This acquisition brings CSRI's total contiguous shallow rights land position in the Farrell Creek area to approximately 100,000 acres (156 sections) of 100% working interest lands. These Cretaceous lands will add to the material amount of natural gas resource currently held within the Gething Formation.

In addition, these lands are also prospective for produced water disposal in multiple formations. It is the Corporation's intent to evaluate the capability of these formations for produced water disposal in an effort to reduce water disposal costs associated with its Montney production. Being able to create a solution for produced water disposal, combined with CSRI's 25% working interest in a 10,000 m3/day source water pipeline, will provide the Corporation with a fully integrated approach to water handling in the area.

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry.

On behalf of the Board of Directors,

CANADIAN SPIRIT RESOURCES INC.

Alfred Sorensen, Chief Executive Officer & Secretary

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 NEWS RELEASE

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