Canadian Spirit Resources Inc.
TSX VENTURE : SPI
PINK SHEETS : CSPUF

Canadian Spirit Resources Inc.

November 10, 2010 18:26 ET

Canadian Spirit Resources Inc. Announces Farrell Creek Operational Update

CALGARY, ALBERTA--(Marketwire - Nov. 10, 2010) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI) (PINK SHEETS:CSPUF) is pleased to provide an update of its Montney project located in the Farrell Creek area of northeastern British Columbia.

At the c-18-I/94-B-1 upper Montney horizontal well, Canbriam Energy BC Partnership, the operator, carried out a production test with initial flow rates of up to 4.7 mmcf/d. The flow rates achieved over the test period are inconsistent with expectations based on technical data collected during the drilling and completion of this well and offset wells. The well is currently shut-in to allow for analysis of a pressure build-up test. The operator has indicated that once they have evaluated all relevant technical data, they plan to re-enter the c-18-I well before year-end in an attempt to further optimize productivity.

At the c-A18-I/94-B-1 upper Montney horizontal well, the operator has advised that an operational issue had delayed the fracturing of this well. A solution has been identified and will be implemented prior to fracture stimulation. Subject to the availability of fracture crews and equipment, the c-A18-I well is planned to be fracture stimulated and tested before year-end. Information gathered from the completion of the c-18-I well will be used to mitigate operational risks when completing the c-A18-I well. As a result, the fracture stimulation of the b-17-I/94-B-1 lower Montney horizontal well has been scheduled to begin shortly. Flow test results from this short lateral are expected by early December.

Construction of the joint venture's gas processing facility (initial capacity 10 mmcf/d) has begun now that regulatory approval is in hand. While the gas processing facility and connection to the Spectra Energy sales pipeline are expected to be completed this year, commissioning of the facility may take place early in 2011 as approvals for some of the gathering pipelines are still pending. Initial wells connected to the gas processing facility are expected to be the c-A48-I and b-17-I lower Montney horizontal wells and the c-18-I and c-A18-I upper Montney horizontal wells.

At the c-45-I/94-B-1 well, the joint venture is in the final stage of drilling and casing its third horizontal well in the upper Montney. The rig currently drilling the c-45-I well is scheduled to drill two additional Montney horizontal wells at the c-45-I location (or another location to be determined) before spring breakup.

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 the restated interim financial results will be 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.

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.

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