Canadian Spirit Resources Inc.
TSX VENTURE : SPI
OTC Bulletin Board : CSPUF

Canadian Spirit Resources Inc.

December 10, 2010 06:00 ET

Canadian Spirit Resources Inc. Announces Positive Test Results From Lower Montney

CALGARY, ALBERTA--(Marketwire - Dec. 10, 2010) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI)(OTCBB:CSPUF) is pleased to announce flow test results from the b-17-I/94-B-1 lower Montney horizontal well at Farrell Creek, British Columbia.

The b-17 well, in which CSRI holds a 35% working interest, was fracture stimulated in five stages over a short horizontal leg, and flow tested intermittently over a two week period. Initial production was in excess of 3.5 million cubic feet per day (MMcf/d) and stabilized at approximately 2.5 MMcf/d.

This second successful test of the lower Montney Formation (see News Release dated September 27, 2010) exceeded the Corporation's expectations and confirms the Corporation's conviction that the lower Montney zones can add significantly to the total productivity and reserve potential of the Montney Formation as a whole.

The b-17 well (see the Montney Project Joint Venture Map in CSRI's current Corporate Presentation at www.csri.ca) will be tied into the Farrell Creek gas processing facility which is currently under construction and will have an initial capacity of 10 MMcf/d. This facility, scalable up to 50 MMcf/d, is expected to be completed and fully operational in January 2011.

"We are pleased with the b-17 results" stated Don Gardner, CEO. "This represents another important step in demonstrating the productive capability of the Montney Formation, considered one of the most economic unconventional plays in the Western Canadian Sedimentary Basin".

During the first quarter of 2011, Canbriam Energy BC Partnership, the operator ("Canbriam"), plans to fracture stimulate and flow test two previously drilled upper Montney horizontal wells at c-A18-I/94-B-1 and c-45-I/94-B-1. Canbriam also intends to submit several applications for drilling locations forming part of the 2011 drilling program planned for the Farrell Creek joint venture lands.

The Corporation holds interests in 51 gross sections of strategically located joint venture lands and a 100% interest in approximately 14 adjacent sections, all of which include the Montney, Doig and other deep rights.

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 its joint venture partner, Canbriam (www.canbriam.com), 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.

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.

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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