Cascadia International Resources Inc.
TSX VENTURE : CJ

Cascadia International Resources Inc.

August 18, 2006 16:29 ET

Cascadia Announces Arbitration Ruling

CALGARY, ALBERTA--(CCNMatthews - Aug. 18, 2006) - Cascadia International Resource Inc. ("Cascadia") (TSX VENTURE:CJ) announces that a second partial award has been issued by the arbitrator as of August 15, 2006 in the ongoing arbitration between Cascadia and Novawest Resources Inc.

The partial award includes the following awards by the arbitrator:

1) Cascadia is awarded $120,194.20 from Novawest as damages for the loss of PEM 1441.

2) The arbitrator issued a declaration that Cascadia has no right, in relation to exploration carried out under the Option Agreement, to any proceeds from any Government of Quebec incentive programs; however, the arbitrator noted that the Option Agreement is clear that Novawest must assign exploration expenses to Cascadia on account of monies raised through an equity offering of shares on a flow through basis.

3) The arbitrator clarified the previous Minera option partial award.

4) The arbitrator further ruled that a formal budget did not exist and therefore the 20% cap protecting Cascadia from expenditures over budget did not apply. In addition, various charges incurred by Cascadia on behalf of the project may be eligible to offset the amounts payable by Cascadia to Novawest. The final amount owing will be determined by the arbitrator following further submissions by the parties.

5) The arbitrator ruled that Novawest failed to implement the 2004 drilling program in the manner directed by the management committee in a significant number of the holes drilled in the 2004 season. The arbitrator awarded nominal damages to Cascadia for these breaches of the Option Agreement.

Cascadia is in the process of evaluating the entirety of the 70 page decision by the arbitrator and will respond if and when required.

Cascadia also announces that it has cancelled the previously announced private placement financing press released May 10, 2006 (revised May 31, 2006).

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

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