Horizon Industries Ltd.

Horizon Industries Ltd.

August 18, 2006 11:18 ET

Horizon Industries Ltd.: Operations Update-Funk Flow Test & Drilling Schedule

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 18, 2006) - Horizon Industries Ltd. (TSX VENTURE:HRZ), is pleased to announce that flow testing of the Horizon Funk #1 Well in Goliad County is set to proceed early next week. The service rig has been scheduled to move in on Monday, August 21. Further, we are also pleased to announce results of the side wall core analysis from the well. A total of 25 side wall cores were taken at intervals throughout the well bore. Six cores corresponding to the productive interval shown on the down hole logs showed high gas saturations and were deemed to be gas productive from the analysis. Porosities ranged from 28.4% to 29.9% and permeability from 463 millidarcies to 638 millidarcies. The core analysis confirms the log analysis of approximately 15 feet of gas sand between 2,030 feet and 2,045 feet with average porosity of 29% and average permeability of 500 millidarcies.

The Company also announces that it was necessary to release the drilling rig originally intended to drill the Horizon Funk #2 well. The rig was determined to have mud weight capacity insufficient to deal with the pressures anticipated from the Horizon Funk #2 target located in the geo pressured Yegua formation. A new rig, capable of safely drilling this target, has been scheduled and is available to commence operations in approximately 60 days. The drilling contractor is Edde Drilling Co Inc. of Victoria, Texas.

Horizon Industries Ltd. currently holds an 79% working interest in the Funk Prospect and a 87% working interest in the GeoGoliad #3 and GeoGoliad #4 wells.

About Horizon Industries Ltd.

Horizon Industries Ltd. is an emerging oil and gas exploration and production company building a high quality asset base in focused areas throughout the United States. The Company is currently developing strategic alliances in high impact oil and gas plays in Western Canada. For more information, please visit www.horizonindustriesltd.com.

On Behalf of the board of directors,

Christopher Wensley, President

WARNING: The Company relies on litigation protection for "forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company.

Investor Relations Enquiries: Freeform Communications - Vancouver, BC, (604) 288-7222; Venture Capital Partners - Vancouver, BC, scottmcmyn@telus.net; Princeton Research Corporation - Las Vegas, NV, (702) 650-3000, mike@princetonresearch.com; Horizon Industries Ltd., Vancouver, BC, info@horizonindustriesltd.com.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.

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