Canadian Spirit Resources Inc.
TSX VENTURE : SPI

Canadian Spirit Resources Inc.

December 06, 2010 06:00 ET

Canadian Spirit Resources Inc. Announces Filing of (Final) Short Form Prospectus

CALGARY, ALBERTA--(Marketwire - Dec. 6, 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 filed a (final) short form prospectus in respect of the public offering (the "Offering") of common shares (the "Common Shares") of the Corporation announced on November 22, 2010 and on November 29, 2010.

The Offering will be led by Wellington West Capital Markets Inc. and will include Casimir Capital Ltd., Byron Securities Limited and Acumen Capital Finance Partners Limited (collectively, the "Underwriters") to place 16,670,000 Common Shares for sale on a bought deal basis at a price (the "Offering Price") of $1.50 per Common Share for gross proceeds of $25,005,000.

The Corporation has agreed to grant to the Underwriters an over-allotment option, exercisable in whole or in part in the sole discretion of the Underwriters at any time or from time to time until that date which is 30 days after the closing of the Offering. The over-allotment option provides for the purchase of up to an additional 2,500,500 Common Shares (the "Over-allotment Shares") at the Offering Price for additional gross proceeds of up to $3,750,750.

The Corporation has agreed to pay 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, if applicable, 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 will be freely tradable under applicable securities laws in force in Canada. The Offering is anticipated to close on or about December 14, 2010 (the "Closing Date"), and is subject to certain conditions, including, but not limited to, completion of due diligence by the Underwriters and the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

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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