Corridor Resources Inc.
TSX : CDH

Corridor Resources Inc.

November 28, 2006 16:00 ET

Corridor Resources Inc. Files Preliminary Short Form Prospectus

HALIFAX, NOVA SCOTIA--(CCNMatthews - Nov. 28, 2006) - NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES

Corridor Resources Inc. ("Corridor" or the "Corporation") (TSX:CDH) is pleased to announce that it has engaged RBC Capital Markets to act as lead manager of a proposed marketed offering (the "Offering") of common shares ("Shares") of the Corporation. Aggregate gross proceeds from the Offering are anticipated to be approximately $30 million. The Offering will also include Jennings Capital Inc., D&D Securities Company and Beacon Securities Limited. The underwriters will have an option, exercisable for a period of 30 days from the date of closing, to purchase up to 10% in additional Shares at a price equal to the Offering price to cover over-allotments and for market stabilization purposes.

The net proceeds of the offering will be used to fund Corridor's McCully development drilling and completion program, exploration drilling in New Brunswick and Prince Edward Island and for general corporate purposes. Closing of the Offering is subject to certain conditions, including, but not limited to, receipt of all necessary securities regulatory approvals (including the approval of the Toronto Stock Exchange).

The Shares will be offered by way of a short form prospectus in all of the provinces of Canada, other than Quebec. A preliminary short form prospectus with respect to the Offering has been filed by Corridor by way of SEDAR with the securities regulatory authority in each of the provinces of Canada, other than Quebec. The Shares will be offered in the United States to qualified institutional buyers on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

The Shares offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the Shares in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.

Corridor is a junior oil and gas exploration and production company, headquartered in Halifax, Nova Scotia, with interests onshore in New Brunswick, Prince Edward Island and Quebec, and offshore in the Gulf of St. Lawrence.

Contact Information

  • Corridor Resources Inc.
    Norman W. Miller
    President
    902-429-4511
    902-429-0209 (FAX)
    www.corridor.ns.ca