Canadian Spirit Resources Inc.
TSX VENTURE : SPI

Canadian Spirit Resources Inc.

December 13, 2007 06:00 ET

Canadian Spirit Resources Inc. Announces Private Placements

CALGARY, ALBERTA--(Marketwire - Dec. 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 7.0 million units (the "Units") at a price of C$0.70 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 two years at an exercise price of C$1.00 per share. The placement of Units is expected to close January 15, 2008.

The second placement will be up to 4.0 million flow-through shares at a price of C$0.80 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 2007 deductions to be renounced to purchasers of the Flow-through Shares will be Canadian Development Expenses. The placement of Flow-through shares is expected to close December 28, 2007.

Investors may subscribe for Units or Flow-through Shares or both. The combined total value of Units and Flow-through Shares being offered shall not exceed C$5.0 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 tie-in the Company's pilot production project at Farrell Creek, British Columbia, the potential drilling of additional wells and for general corporate purposes. The first phase of this pilot project has included the drilling and production testing of five wells. The most recent well to be completed, d-093, is currently in the dewatering phase of production testing with indications of inclining gas volumes as fracture fluid and formation water are removed. Testing of this well is expected to continue through January 2008. The target date for tie-in of the pilot project is March 2008.

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. The Company has identified a 1.8 tcf resource play, assembled a unique, high working interest land position in approximately 40,000 gross acres in northeast 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
    (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