Junex inc.

Junex inc.

April 12, 2005 23:59 ET

Junex and Petrolia Join Forces to Discover and Produce Oil in Quebec's Gaspe Peninsula

MONTREAL, April 12 - Junex (JNX - TSX VENTURE) and Petrolia (PEA - TSX VENTURE)
are pleased to announce the completion of a partnership agreement that will
accelerate the discovery and production of oil in Quebec's Gaspe Peninsula.
Through this partnership both companies will control approximately 70% of all
exploration permits in the Gaspe Peninsula, primarily those permits that are
considered to be most favourable to hydrocarbon discovery and production.

The objective of the partnership is to combine the landholdings of both Junex
and Petrolia and then to leverage the Junex technical expertise with
Petrolia's financial resources to explore and develop oil production as soon
as possible. Three targets have already been identified. These targets are
located at shallow depths and are ready to be drilled in 2005, wholly financed
with Petrolia's cash. The partnership between Junex and Petrolia will result
in the initiation of an intensive drilling program costing between $5M and
$10M to be carried out within one year.

In accordance with the partnership agreement, Junex is transferring to

- Two permit blocs totalling 6,366 km2 located between Murdochville and
Gaspé (Blocs "B" and "C" on the map available at www.petroliagas.com and

- A right of first refusal on two other permit blocks held 100% by Junex
and totalling 5,885 km2 (Blocs "D" and "E" on the map available at
www.petroliagas.com and www.junex.ca)

The transferred permits adjoin permits currently held by Petrolia in the Gaspe
Peninsula that surround the Galt permit where Junex has a producing a natural
gas field and indications of oil as evidenced by 200 barrels of oil production
during a 2004 production test.

In return for the Permit transfer, Junex is receiving:

- 3,128,718 shares of Petrolia at a price of $0.40 ($1,251,487)

- A "Back-In" right in the development and production project equivalent to
50% of Petrolia's participation in case of any oil or gas discovery on Blocs B
and C, and

- The right to elect a Junex representative to the Petrolia Board of Directors.

"This partnership will rapidly bring Junex closer to its main goal which is to
operate profitably while developing the oil and gas potential of the Gaspe
Peninsula. This strategy will also minimize the financial risks often associated
with exploration and will accelerate hydrocarbon discoveries in the Gaspe Peninsula"
states Mr. Jean-Yves Lavoie, P. Eng., President of Junex.

"With this agreement, Petrolia's exposure via hydrocarbon exploration Permits will
increase from 2,388 km2 to 14,650 km2, representing an increase from 10 to 65% of all
the exploration permits that currently exist in the Gaspe Peninsula.. Petrolia will
hold a strategic position in the Gaspe Peninsula, an area which has clearly shown
excellent potential for hydrocarbon discovery. With a working capital of $2,6M, we are
determined to pursue an aggressive exploration program to quickly explore our greatly
expanded Gaspe Peninsula holdings" stated Mr. André Proulx, President of Petrolia.

The completion of this transaction is subject to the approval of Regulatory authorities
and of the Board of Directors of each company.

About Junex

Active in the natural resources sector, Junex is a unique company in Quebec since
it is the only natural brine and natural gas producer in the Province. In parallel
to these production activities that are located in the Bécancour area (brine) and
in the Gaspé (natural gas), Junex continues its efforts to develop a natural gas
underground storage facility beneath the Bécancour industrial park.. With more than
4 million acres under exploration permit, not including the transaction with Petrolia,
Junex is also the leading oil and gas producer and explorer in Quebec.

About Petrolia

Petrolia is an oil and gas company that concentrates on hydrocarbon exploration in
the Gaspe Peninsula. Listed on the TSX Venture Exchange in February 2005, Petrolia
has working capital of $2.7M and a capitalization 12,551,389 common shares issued
and outstanding. Near term, Petrolia's goal is to produce oil and gas from its Gaspe
Peninsula properties or from one of its newly acquired partnership properties. The
company is currently conducting a detailed seismic survey on a potential hydrocarbon
reservoir located on the western border of its original Gaspe property.

The TSX Venture Exchange has neither approved nor disapproved the information
contained herein.

Contact Information

  • JUNEX :
    Mr. Jean-Yves Lavoie
    President and
    Chief of Operations
    (418) 654-9661, ext. 232

    Mr. Dave Pépin
    Vice President Corporate Affairs
    (418) 654-9661, ext. 225

    André Proulx,
    President and Chief of Operations,
    (418) 724-0112

    Isabelle Proulx,
    Investors Relations,
    (418) 724-0168