Canoro Resources Ltd.
TSX VENTURE : CNS

Canoro Resources Ltd.

July 31, 2006 08:00 ET

Canoro Files Annual Results for Year Ended March 31, 2006

CALGARY, ALBERTA--(CCNMatthews - July 31, 2006) - Canoro Resources Ltd. (TSX VENTURE:CNS) has filed its Annual Report, Annual Information Form ("AIF"), Management's Discussion and Analysis, Consolidated Financial Statements, Management Information Circular and related documents for its year ended March 31, 2006 on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com. The AIF contains supplemental disclosure, including reserves information, as mandated and required by Canadian Securities Administrators National Instrument 51-101. All of these documents can also be accessed on Canoro's website at www.canoro.com.

Farmout Update

On March 31, 2006, Canoro entered into a letter of intent with Brownstone Ventures Inc. to farm out 15% of its participating interest in the AA-ONN-2003/2 and AA-ON/7 exploration blocks. On AA-ONN-2003/2, Canoro's partners have waived their right of first refusal. Canoro plans to submit an application to the Government of India shortly to have the 15% participating interest transferred to Brownstone. On government approval, Canoro's participating interest in AA-ONN-2003/2 will be reduced from 30% to 15%.

For AA-ON/7, after the expiry of the partner's right of first refusal period, Canoro and Brownstone have mutually agreed not to proceed with the farmout of the 15% interest. Canoro's participating interest in AA-ON/7 will remain at 65%.

Canoro and Brownstone have agreed to bid together for exploration blocks under India's NELP VI licensing round. Bids are to be submitted by September 15, 2006. The Government of India anticipates awarding the blocks to successful bidders early in 2007.

Canoro is a Canadian-based international oil and gas company operating in the prolific Assam/Arakan basin of northeast India. Canoro is the operator of Amguri field with a 60% working interest and has restored production from the field. Canoro is the operator with a 65% working interest in the 1,445 km2 AA-ON/7 exploration block, and has a post-farmout 15% non-operated working interest in the 295 km2 AA-ONN 2003/2 exploration block.

Common shares of Canoro trade on the TSX Venture Exchange under the symbol 'CNS'.

Certain statements contained in this news release may be considered as "forward looking". Such statements are generally identifiable by the terminology used, such as "intend", "plan", "expect", "appears", "anticipate", "estimate", "budget", "outlook" or other similar words. Such "forward looking" statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results.

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

Contact Information

  • Canoro Resources Ltd.
    Rob McInnis
    Director, Investor Relations and New Ventures
    (403) 543-5748
    (403) 543-5740 (FAX)
    Email: mail@canoro.com
    Website: www.canoro.com