Caribou Resources Corp.
TSX VENTURE : CBU

Caribou Resources Corp.

November 15, 2006 09:00 ET

Caribou Resources Corp. Arranges $40 Million Debt Facility; Terminates Strategic Alternatives Process

CALGARY, ALBERTA--(CCNMatthews - Nov. 15, 2006) - Caribou Resources Corp. (TSX VENTURE:CBU) has entered into a Letter of Intent with a US financial institution for a $40 million loan facility with a five year term to be secured by first ranking security interests in respect of the assets of the Company. The closing of and advancement of funds under the facility are subject to the execution of definitive documentation and other standard conditions precedent. Closing is expected to occur by December 15, 2006.

Caribou Resources Corp. retained Durham Capital Corporation of New York to assist with the arrangement.

Drawings on the facility will be used to repay in full all indebtedness to the Company's existing bank as well as the outstanding bridge facility, to reduce accounts payable and for general corporate purposes.

As previously announced, on August 8, 2006 the Company opened a data room as part of a strategic alternative process, with Scotia Waterous Inc. as its financial advisor. Given the uncertainty and volatility in both the energy market place and the gas pricing environment, the Board of Directors has taken the decision to terminate the process.

Caribou is currently completing the tie in of three wells drilled this past winter at Redwater in Central Alberta and has made preliminary preparations for its winter program in Northern Alberta.

Certain information regarding Caribou in this news release including management's assessment of future plans and operations, the loan facility referenced herein, production estimates, drilling inventory and wells to be drilled, timing of drilling and tie-in of wells, productive capacity of new wells, capital expenditures and the timing thereof, may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence Caribou's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur, or, if any of them do so, what benefits Caribou will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhausted. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Caribou does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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.

Contact Information