CanAustra Resources Inc.
TSX VENTURE : CTA

May 26, 2005 02:57 ET

CanAustra Resources Inc.-Annual General Meeting, Share Consolidation Proposal and Name Change

CALGARY, ALBERTA--(CCNMatthews - May 26, 2005) - CANAUSTRA RESOURCES INC. (TSX VENTURE:CTA) ("CanAustra" or the "Company") announces that at its upcoming Annual General Meeting, scheduled to be held on June 24, 2005, the Company will be asking its shareholders to consider and, if thought fit, approve a Special Resolution authorizing a consolidation of its common shares (the "Shares").

Shareholder approval will be sought for a consolidation of the Shares on the basis of one (1) new common share for each two (2) common shares outstanding. The consolidation will require acceptance by the shareholders and the appropriate regulatory authorities.

Currently, the Company has 31,267,000 Shares issued and outstanding. Management believes a consolidation of the Company's Shares would allow the Company to be in a more favorable position for financing. The number of shares on issue post consolidation would be 15,633,500.

Shareholder approval will also be sought for a change of name of the Company in conjunction with the consolidation, changing the name of the Company to Oriental Resources Inc.



On behalf of
CanAustra Resources Inc.
"Malcolm L. Stevens"
Executive Chairman


Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information