Probe Resources Ltd.

Probe Resources Ltd.

December 24, 2008 22:46 ET

Probe Announces Update on Frankel Litigation

THE WOODLANDS, TEXAS--(Marketwire - Dec. 24, 2008) - Probe Resources Ltd. ("Probe" or the "Company") (TSX VENTURE:PBR) provides an update on the litigation commenced by Frankel Offshore Energy Inc. ("Frankel") against the Company's money earned subsidiary, Probe Resources US Ltd. ("Probe US"), and Probe's Chairman and CEO, L. Scott Broussard ("Broussard").

As of the date of this News Release neither the Company nor Probe US have been served and as such no reply to the claims has been entered. Having reviewed the claims and allegations of Frankel, the Company remains confident that such claims and allegations of Frankel have little merit and will ultimately be disproved.

Frankel's lawsuit alleges that Frankel attempted to secure financing for the development of certain oil and gas properties where Broussard became privy to and utilized confidential information. Neither the Company nor Broussard were parties to a confidentiality agreement. Additionally, neither the Company nor its officers have ever had any contractual relationships with the plaintiff. Frankel seeks monetary damages for fraud, conversion, misrepresentation and breach and/or anticipatory unspecified breach of contract. Alternatively, Frankel seeks the establishment of a constructive trust for revenue from the plaintiffs' alleged interest in certain properties and has requested unspecified damages and attorney's fees, interest and costs as a result of the utilization of the alleged confidential information.

The Company provides this news release at the request of the Canadian securities regulatory authorities.

About Probe Resources Ltd.

The Company, along with its wholly-owned subsidiary Probe Resources US Ltd., located in The Woodlands, Texas, is an oil and natural gas exploration and production company focused on generating, acquiring, developing, and operating drilling prospects within the Texas and Louisiana Outer Continental Shelf of the Gulf of Mexico.


Scott Broussard, Chief Executive Officer and Chairman of the Board

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company's securities in the United States. The Company's securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Statements in this press release may contain forward-looking information including expectations of future operations (including drill rig commitments and use of proceeds), commerciality of any gas discovered, production rates, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income and oil taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, or reservoir performance, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

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

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