Outlook Resources Inc.
TSX VENTURE : OLR

Outlook Resources Inc.

April 17, 2007 17:43 ET

Outlook Completes Debt Settlement and Financing

TORONTO, ONTARIO--(CCNMatthews - April 17, 2007) - Outlook Resources Inc. ("Outlook" or the "Company") (TSX VENTURE:OLR) wishes to announce that further to its press release dated January 18, 2007, the Company has settled approximately $1.1 million in debt.

Debt Settlements

The Company has settled a total of $774,203.53 owed to the following individuals and law firms:

John Bottomley and Dennis Patkau for management services and advances to fund prior Company obligations. Gardiner Roberts LLP, the Company's current legal counsel, for outstanding fees and disbursements, and to Johnstone & Company, the previous legal counsel, for outstanding legal fees and disbursements. The Company issued a total of 12,625,826 common shares priced at $0.05 per share and a total of $142,912.23 of the debt has been forgiven.

Additionally, the Company has completed the settlement of a legal action commenced against it for damages of $261,115.61 plus interests and costs in consideration for the payment of $50,000 in cash, the assignment of a $31,000 obligation owed to the Company and the issuance of 3,340,000 common shares priced at $0.05 per share.

Finally, the Company has settled a total of $35,907.12 owed to an arm's length creditor on the issuance of 716,142 common shares priced at $0.05 per share.

Financing

The Company has also completed a $50,000 private placement. The Company has issued 1,000,000 common shares priced at $0.05 per share and 1,000,000 warrants exercisable at $0.10 per share for a period of two years. Merlin Capital Corp., a company controlled by William R. Johnstone, an officer and director of the Company, subscribed for 500,000 units of this placement.

After giving effect to these transactions there are currently 68,346,697 common shares issued and outstanding. All of the securities issued pursuant to these transactions will be legended and restricted from trading until August 17, 2007 with respect to the debt settlements and August 18, 2007 with respect to the private placement.

Early Warning

William R. Johnstone, a director and officer of Outlook, received 4,000,000 common shares on the completion of the debt settlement. In addition, Gardiner Roberts LLP, a partnership in which Mr. Johnstone is a partner although he is not a member of the executive committee which makes management decisions, received 2,035,474 common shares on the completion of the debt settlement. Merlin Capital Corp., a company controlled by Mr. Johnstone, subscribed for 500,000 units of the Corporation consisting of 500,000 common shares and 500,000 warrants. Mr. Johnstone and companies controlled by him previously owned 966,646 common shares of Outlook, warrants to acquire 120,000 common shares of Outlook and options to acquire 380,000 common shares of Outlook. As a result, Mr. Johnstone holds directly or indirectly or has control and direction over 7,502,120 common shares representing 10.98% of current outstanding capital. If Mr. Johnstone were to exercise all of the convertible securities under his control, such number would be increased to 8,502,120 common shares out of a partially diluted capital of 69,346,697 common shares (after giving effect to the exercise of those convertible securities) representing 12.26% of outstanding capital.

John Bottomley, a director and officer of Outlook, and two companies controlled by Mr. Bottomley GPI Management Inc. and Strategic Business Solutions Inc., received a total of 6,090,352 common shares on the completion of the debt settlement. Mr. Bottomley and companies controlled by him previously owned 1,003,207 common shares of Outlook and options to acquire 2,229,106 common shares of Outlook. As a result, Mr. Bottomley holds directly or indirectly or has control and direction over 7,093,559 common shares representing 10.38% of current outstanding capital. If Mr. Bottomley were to exercise all of the convertible securities under his control, such number would be increased to 9,322,665 common shares out of a partially diluted capital of 70,575,803 common shares (after giving effect to the exercise of those convertible securities) representing 13.21% of outstanding capital.

Each of Mr. Johnstone and Mr. Bottomley has informed the Company that he has acquired the common shares and warrants (as applicable) for investment purposes and has no present intention to either increase or decrease his holdings in Outlook. Notwithstanding the foregoing, each of Mr. Johnstone and Mr. Bottomley state that he may decrease or increase his beneficial ownership, control, or direction over common shares of the Company through market transactions, private agreements, exercise of options or warrants, other treasury issuances or otherwise.

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

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