Canadian Spirit Resources Inc.

Canadian Spirit Resources Inc.

February 28, 2005 06:00 ET

Canadian Spirit Resources Provides Corporate Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANADIAN SPIRIT RESOURCES INC.

TSX VENTURE SYMBOL: SPI

FEBRUARY 28, 2005 - 06:00 ET

Canadian Spirit Resources Provides Corporate Update

CALGARY, ALBERTA--(CCNMatthews - Feb. 28, 2005) - Canadian Spirit
Resources Inc. (TSX VENTURE:SPI) ("CSRI" or the "Company") is pleased to
provide an update of current and planned Company activities.

At the c-83-H location (third test hole), completion and testing of the
Gething coals and interbedded sands (the "Gething rock package") is
proceeding as planned and subject to equipment availability, is expected
to commence during March 2005. Preparatory field work is currently
underway. The completion and production testing of the c-83-H well has
been divided into several separate tests, beginning with the lower coal
seam in the Gething formation. Management believes that the additional
time and cost of conducting separate tests will enable the Company to
make better completion decisions in the future. Each test is expected to
take from thirty to ninety days.

Based on the staged evaluation process that the technical team has in
place, it appears that a portion of the Company's Farrell Creek lands
may also have conventional and unconventional natural gas opportunities.
The continuing evaluation of data from prior test holes has indicated
the potential for gas in both shallow and deeper tight sand formations.
Subject to equipment availability and the timing of road bans in the
area, the Company plans to re-enter the c-48-I (second test hole) and
stimulate the shallow gas zone within the next thirty days. While the
deeper tight gas potential is of interest to the Company, no specific
operations are planned for this target at this time.

Also, the Company's geological team has reviewed recently published
research on shale gas potential in northeast British Columbia and has
correlated this research with data acquired from it's three test holes.
As a result, the Company has applied to drill a shale test under the
British Columbia test hole regime. Further evaluation plans, if
warranted, will be announced once this test hole has been drilled and
evaluated.

All of the operations referred to above will be funded from existing
cash resources.

Financial results for 2004 are expected to be released on March 11, 2005
and the current private placement is expected to close on March 4, 2005
subject to TSX Venture approval.

Canadian Spirit Resources Inc. is a natural resources company focusing
on the exploration and development of opportunities in the natural gas
from coal ("NGC", also referred to as coalbed methane or "CBM") sector
of the energy industry.



On behalf of the Board of Directors,
Canadian Spirit Resources Inc.

"Phil Geiger"

Phillip D.C. Geiger, President & COO



-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    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
    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.