Exall Resources Limited
OTC Bulletin Board : EXALF

Exall Resources Limited

December 15, 2006 15:08 ET

Exall Distribution of Exall Energy Shares

TORONTO, ONTARIO--(CCNMatthews - Dec. 15, 2006) - Exall Resources Limited ("Exall") (EXL:TSX)(OTCBB:EXALF) confirmed today that the effective date under the "Plan of Arrangement" (the "Arrangement") between Exall and Exall Energy Corporation ("EEC") is December 14, 2006 (the "Effective Date"). Exall had previously announced in its press release of December 8, 2006 that the Record Date had been set at December 14, 2006, for determining the shareholders of eligible to receive shares of EEC under the Arrangement. This Record Date was set through the Toronto Stock Exchange as part of the reorganization process to determine the shareholders eligible to receive shares of EEC under the Arrangement.

The Arrangement was approved by the shareholders of Exall on November 16, 2006 at a special meeting of its shareholders. As a result of the reorganization of its business which was effected through the Arrangement, shareholders of record of Exall on December 14, 2006 will receive a return of capital in the form of common shares of EEC.

Further to the Arrangement and as approved by the shareholders at the Meeting, a consolidation of the issued and outstanding capital of EEC on a five for one basis was completed immediately prior to close of markets on the Toronto Stock Exchange on December 14, 2006 in order to coincide with the Effective Date. After the consolidation, there were 16,890,761 issued shares in EEC.

The 16,890,761 common shares of EEC which have been issued will be distributed, as soon as is practicable following the listing of the common shares of EEC on a recognised Canadian exchange, to the holders of record on the Effective Date.

Exall is a Toronto Stock Exchange listed company that trades under the symbol EXL. Shareholders of Exall have approved a merger with Southern Star Resources Inc. and a change of its name to Gold Eagle Mines Ltd. The merger transaction is expected to close December 20, 2006.

Forward-Looking Statement

The statements made in this News Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to Exall's filings with Canadian securities regulators available on www.sedar.com or the Company's website at www.exall.com.

Contact Information

  • Exall Resources Limited
    Stephen G. Roman
    Chairman, President and CEO
    (416) 368-3949
    Website: www.exall.com