Exall Resources Limited

Exall Resources Limited

December 07, 2006 10:43 ET

Exall Increases Interest in Aitken Creek Gas Discovery

TORONTO, ONTARIO--(CCNMatthews - Dec. 7, 2006) - Exall Resources Limited ("Exall") (TSX:EXL) (OTC:EXALF) is pleased to announce it has increased its interest in the Aitken Creek gas discovery in northeast British Columbia through the acquisition of the 15% interest held by Watts Energy Limited.

Exall's working interest increases from 7.5% to 22.5%. Exall had earned an interest in five gas spacing units and trade seismic in two deep structures in the Aitken Creek area of northeast BC, by participating in a well on this acreage. Exall paid 12.5% of this first well to earn 12.5% before and 7.5% after payout of the well and also earned a 7.5% interest in the four remaining undrilled spacing units. The well was drilled down to the Debolt, and gas was tested in the Baldonnel and Halfway zones. Exall also participated in purchasing additional lands adjacent to the original earned lands. With this purchase Exall's total land in the Aitken Creek area now stands at 22.5% of 32 units and 15% in 4 units for a total of 564 net hectares.

This is an exploration play with analogies to prominent gas fields of 50 to 100 BCF 6-8 kilometres west of the Aitken Creek discovery. The Aitken Creek play has the potential of encountering six productive zones, based on the Begg and main Aitken Creek analogy pools in the area.

Exall Resources Limited is a Toronto Stock Exchange listed company that trades under the symbol EXL. Shareholders of Exall have approved the sale of its oil and gas business to its wholly-owned subsidiary Exall Energy Corporation ("EEC") in exchange for common shares of EEC which will be distributed to Exall shareholders.

Shareholders of Exall have also approved a merger with Southern Star Resources Inc. and a change of its name to Gold Eagle Mines Ltd. These transactions are expected to close in December, 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