Exile Resources Inc.

Exile Resources Inc.

October 12, 2006 12:06 ET

Exile Resources to Appoint New Chairman and Realign Management Shareholdings

TORONTO, ONTARIO--(CCNMatthews - Oct. 12, 2006) - Exile Resources Inc. (TSX VENTURE:ERI) today announced that Mr. Ian Gray has agreed to accept the position of non-executive Chairman of the Company. Mr. Gray's extensive experience in the upstream oil and gas business around the world, and his experience on the Boards of junior and mid-tier exploration and production companies will ensure he is a valuable new addition to the Exile Board. His appointment to the Board will be proposed to shareholders at the Annual General Meeting scheduled for January 2007, following which his appointment as Chairman would take effect. Mr. Gray's appointment as non-executive Chairman remains subject to the approval of the TSX Venture Exchange.

Mr. Gray is a geology graduate from Durham University who spent several years in seismic contracting, covering assignments in Oman, Nigeria and Australia. Subsequently, he joined Conoco and over the next 25 years held a series of international management positions culminating in his appointment as President of Dubai Petroleum. He left to join Amerada Hess in 1995 as Vice President of International Exploration and Production and in 1996 became a non-executive Director of Premier Oil representing Amerada Hess' interests with Premier Oil. After leaving Amerada Hess in 2000 he continued as an independent Director of Premier Oil until July 2006. In 2005 he became Chairman of Mitra Energy an oil exploration and production company which works exclusively in southeast Asia.

At the Annual General Meeting the Board will also propose that Exploration & Production Director Tony Henshaw be nominated as a director.

Two of the founding directors of the Company have decided to align further the interests of shareholders and the current and proposed management team by enacting a share redistribution scheme. The effect of this arrangement is to redistribute founders' shares in the Company via a private share sale to other members of the executive management team, namely Messrs. Brown, Henshaw, Scott and Warren, the Chairman designate Ian Gray and Rod de Courcy Ireland who was recently appointed to the Board. The sale of an aggregate of 500,000 of these share sales are transfers within escrow and accordingly remain subject to the approval of the TSX Venture Exchange. In addition Messrs. Brown and Henshaw have entered into agreements to acquire 300,000 and 500,000 shares, respectively, at yesterday's closing price of 40 cents per share. The combined share sale represents 4.7% of the ERI issued share capital as of October 12, 2006.

The Board of Directors has also approved the issuance of 200,000 stock options to certain of its employees, consultants and directors, each such option entitling the holder thereof to acquire one common share of the Company at an exercise price of $0.45 until September 22, 2011.

About Exile Resources Inc.

Exile Resources Inc. is an oil and gas exploration company with interests in the Brazeau River Project, located 160 km south west of Edmonton, Alberta. The Company is also pursuing additional oil and gas, exploration and development opportunities in Africa. Exile Resources Inc. has 35,298,223 issued and outstanding common shares. Please visit Exile Resource's web site for further information: www.exileresources.com.

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The TSX Venture Exchange has not reviewed this release and it does not accept responsibility for its adequacy or accuracy.

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