Caribou Resources Corp.
TSX VENTURE : CBU

Caribou Resources Corp.

December 18, 2006 11:28 ET

Caribou Resources Corp. Announces Sale of Non-Operated Assets for $5.6 Million

CALGARY, ALBERTA--(CCNMatthews - Dec. 18, 2006) - Caribou Resources Corp. (TSX VENTURE:CBU) has signed a binding Offer to Purchase in which it agrees to sell certain non operated assets in Northern Alberta for $5.6 million. Closing is expected for December 21, 2006. The assets (Caribou WI approximately 17%), include current production of approximately 70 boe/d, 224 mboe of proved plus probable reserves, and seismic. Based on the total purchase price, transaction metrics are $80,000 per flowing boe, $25.00 per boe based on proved plus probable reserves and $41.00 per boe on a total proved basis.

Proceeds will be used to reduce debt and strengthen the company's balance sheet. Caribou is proceeding with the necessary due diligence and documentation for completing the previously announced debt facility.

Natural gas reserves and volumes are converted to barrels of oil equivalent (boe) on the basis of six thousand cubic feet (mcf) per one barrel (bbl) of oil. Boes may be misleading, particularly if used in isolation. The 6:1 boe conversion ratio is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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

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