Fair Sky Resources Inc.
TSX VENTURE : FSK

Fair Sky Resources Inc.

April 05, 2006 14:34 ET

Fair Sky Completes Amalgamation, Common Shares Begin Trading on TSX Venture Exchange

CALGARY, ALBERTA--(CCNMatthews - April 5, 2006) -

(Not intended for Dissemination in the United States)

Fair Sky Resources Inc. (TSX VENTURE:FSK) ("Fair Sky" or the "Corporation") is pleased to announce that it has completed its amalgamation with Primax Capital Corp. ("Primax") as described in the joint management proxy circular of Fair Sky and Primax dated February 14, 2006, a copy of which is available for review at the SEDAR website, www.sedar.com . The amalgamated corporation will carry on as "Fair Sky Resources Inc.", and its common shares will begin trading on the TSX Venture Exchange on Wednesday, April 5, 2006. Upon commencement of trading, Fair Sky will have 10,059,200 common shares issued and outstanding.

Fair Sky presently has approximately 140,000 gross acres (approximately 75,000 acres net) of developed and undeveloped lands, consisting of both purchased and farm-in acreage, with additional potential farmin lands being assessed by management. During the 3rd quarter of 2005 and the 1st quarter of 2006, the Corporation drilled and completed 8 gross wells (55% net) in addition to the 10 gross wells (45% net) previously completed and cased in 2004/2005. Fair Sky is presently drilling 2 gross wells (67% net) with an additional 2 well locations licensed and ready to be spudded, breakup permitting. Production at the end of March, 2006, was estimated by Fair Sky management at approximately 275 boe/day, with an estimated 500 additional boe/day awaiting tie-in. Fair Sky has commissioned an updated report to be prepared by a qualified reserves evaluator effective as at March 31, 2006, which report will be compliant with Canadian Securities Regulators National Instrument 51-101 ("NI51-101") and will be filed on the SEDAR website when available.

Fair Sky's 2006 exploration and development program contemplates drilling or recompleting approximately 20 gross wells at a cost of approximately $20 million including additional land purchases, well completions and tie-ins. Completion of the program is dependent upon, among other things, the availability of capital. The Corporation intends to fund the exploration and development program through a combination of cash on hand, cash flow, a credit facility and equity offerings.

ADVISORY: Natural gas volumes have been converted to barrels ("bbl") of oil equivalent ("boe") using six thousand cubic feet ("mcf") of natural gas equal to one boe. This conversion conforms to NI51-101. Use of the term boe may be misleading, particularly if used in isolation. A boe conversion ration of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Certain information in this news release, including management's assessment of future plans and operations, number of locations in drilling inventory and wells to be drilled, timing of drilling and tie-in of wells, productive capacity of the new wells and productive capacity from different wells, costs, timing and other matters, may constitute forward-looking statements under applicable securities laws. Such forward looking statements necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, wells not performing as expected. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Fair Sky's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website at www.sedar.com . The forward-looking statements contained in this news release are made as at the date of this news release and Fair Sky does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.


The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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