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

Canadian Spirit Resources Inc.

June 19, 2012 14:32 ET

Canadian Spirit Resources Inc. Announces Private Placement of Common Shares

CALGARY, ALBERTA--(Marketwire - June 19, 2012) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI) (OTCBB:CSPUF) announces that it has entered into agreements, subject to TSX Venture Exchange approval, regarding a non-brokered private placement of 14,535,000 common shares of the Corporation (the "Shares") at a price of C$0.30 per Share, for gross proceeds of C$4,360,500.

Finders' fees of C$86,940 in cash are to be paid in respect of certain subscriptions upon closing of the private placement. Following the closing of the private placement, there will be 90,773,661 Shares outstanding. All the securities to be issued pursuant to the private placement shall be subject to a four month restricted resale period.

As previously announced in the quarterly news release dated May 31, 2012, the proceeds of the private placement will be used towards drilling and completion activities to establish natural gas liquids prospectivity on the eastern portion of the Corporation's principal resource property at Farrell Creek, British Columbia.

Pursuant to the policies of the TSX Venture Exchange and to Multilateral Instrument 61-101, the private placement is classified as a "related party transaction". Alfred B. Sorensen, an executive officer and director of the Corporation, has subscribed for 4,000,000 Shares and will hold 4,000,000 (4.41% of the outstanding) Shares; Donald R. Gardner, a director of the Corporation, has subscribed for 80,000 Shares and will hold 1,002,828 (1.10% of the outstanding) Shares; Elmag Investments Inc., a shareholder who owns or has control and direction over more than 10% of the outstanding Shares, has subscribed for 2,925,000 Shares and will hold 18,125,000 (19.97% 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, has jointly subscribed for 2,000,000 Shares and will jointly hold 11,385,600 (12.54% of the outstanding) Shares.

Commenting on the private placement, Alfred Sorensen, CEO stated that "We are pleased our major shareholders continue to express their confidence in the quality of the assets of CSRI by participating in the equity raise."

The private placement was approved by the directors of the Corporation (Messrs. Sorensen and Gardner abstaining) who have determined that exemptions from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101 are available as the fair market value of the securities being issued does not exceed 25% of the Corporation's market value.

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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