Canadian Spirit Resources Inc.
TSX VENTURE : SPI

Canadian Spirit Resources Inc.

June 13, 2007 06:00 ET

Canadian Spirit Resources Inc. Announces Private Placements

CALGARY, ALBERTA--(Marketwire - June 13, 2007) - Canadian Spirit Resources Inc. ("CSRI" or the "Company") (TSX VENTURE:SPI) announces that it is proposing to undertake, subject to TSX Venture Exchange approval, two concurrent non-brokered private placements.

One placement will be up to 2 million units (the "Units") at a price of C$1.00 per Unit. Each Unit will consist of one Common Share and one-half of one Share Purchase Warrant (the "Warrants"). Each whole Warrant will entitle the holder to purchase an additional Common Share of the Company for one year at an exercise price of C$1.10 per share.

The other placement will be up to 1 million flow-through shares at a price of C$1.10 per share (the "Flow-through Shares"). The Flow-though Shares issued pursuant to this placement will entitle, subject to various income tax considerations, Canadian investors to certain tax benefits. The deductions to be renounced to purchasers of the Flow-through Shares will be Canadian Development Expenses.

Investors may subscribe for Units or Flow-through Shares or both. The combined total number of Units and Flow-through Shares being offered shall not exceed 3 million. The Company may pay a finder's fee of up to 6 percent in cash, excluding subscriptions by directors, officers or employees of the Company.

All the securities issued pursuant to the private placements will be subject to a four month restricted resale period.

Proceeds of the proposed private placements will be used to complete the first phase of the Company's pilot production project at Farrell Creek, British Columbia. The first phase of this pilot project has included the production testing of four wells, each completed and fracture stimulated in a different manner. Using the completion techniques which achieved the most economic results from these four test wells, the Company plans to complete and fracture stimulate the d-093 well in July 2007. The d-093 well was drilled and cased in 2006 and has been used in the fracture mapping of other wells in the pilot program. Initial results from the completion and testing of the d-093 well are expected in mid to late August 2007 and will be the basis upon which a decision will be made to tie-in the Farrell Creek pilot wells for sales production.

This news release does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of the securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the Company and management, as well as the financial statements.

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry. The mission of the Company is to develop 1 tcf of natural gas from unconventional resource plays in western Canada. Within four years, the Company has identified a 1.8 tcf resource play, assembled a unique, high working interest land position in over 42,000 gross acres (of which 40,000 are located in British Columbia) and is currently evaluating the productive capability of its principal resource property at Farrell Creek, British Columbia.

On behalf of the Board of Directors,

CANADIAN SPIRIT RESOURCES INC.

Phillip D.C. Geiger, President & Chief Operating Officer

OTC Bulletin Board Symbol (Foreign) "CSPUF"

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.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canadian Spirit Resources Inc.
    Phil Geiger
    President & Chief Operating Officer
    (403) 539-5005
    (403) 262-4177 (FAX)
    Email: phil.geiger@csri.ca
    or
    Canadian Spirit Resources Inc.
    Don Gardner
    (403) 539-5005
    (403) 262-4177 (FAX)
    Email: don.gardner@csri.ca
    or
    BRISCO Capital Partners Corp.
    Gordon W. Aldcorn
    Investor Relations
    (403) 262-9888
    (403) 263-1339 (FAX)
    Email: ir@csri.ca