Sputnik Group Ltd.

June 01, 2006 17:15 ET

Sputnik Group Ltd. Acquires an Additional Stake in Innova Exploration Limited

MOSCOW, RUSSIA--(CCNMatthews - June 1, 2006) - Sputnik Group Ltd. is pleased to announce that, together with its affiliates, Pogan Invest Corp. and Sulidad Invest & Trade Inc. (together, the "Sputnik Group"), it has acquired, 1,016,600 common shares of Innova Exploration Limited ("Innova"), representing approximately 2.59% of the issued and outstanding common shares of Innova. This acquisition increases Sputnik Group's position in Innova to 3,687,000 common shares, or approximately 9.38% of the presently issued and outstanding common shares of Innova. Innova is in the business of exploring and developing natural resource properties, and invests in public and private oil and gas exploration and production companies active in Canada. Innova is listed on the Toronto Stock Exchange under the symbol "IXL".

The Sputnik Group has been informed that Drake Associates, L.P., together with its affiliates, Asset Value Investors, L.P., Diversified Long Term Growth Fund, L.P., Dedicated Value Investors, L.P., Frank Sports Corp., Grace Development II Corp., National Value Investors, L.P., Sterling Grace Capital Management, L.P., First Value Investors, L.P. and the principals of Drake Associates, L.P. (collectively, the "Drake Group") own and control 928,500 common shares of Innova representing approximately 2.36% of the issued and outstanding common shares of Innova.

In addition, the Sputnik Group has been informed that Field Nominees Limited, together with its affiliate, Hanseatic Investment Holdings Ltd., as the nominee for the trustee of trusts for the benefit of the principals of Drake Associates, L.P., and a company associated therewith (collectively, "Field Nominees"), own and control 1,622,400 common shares of Innova representing approximately 4.13% of the issued and outstanding common shares of Innova.

While the Sputnik Group, the Drake Group and Field Nominees do not have any agreement, commitment or understanding, either formal or informal, among them, and do not believe that they are acting jointly and in concert, due to certain historical business relations among them, they have decided to comply with the early warning disclosure requirements that are applicable to parties who are acting jointly and in concert under Canadian securities legislation.

Accordingly, the Sputnik Group announces that the Sputnik Group, the Drake Group and Field Nominees, own and control, in the aggregate, 6,237,900 common shares of Innova, representing approximately 15.87% of the issued and outstanding common shares of Innova.

The Sputnik Group acquired the common shares through the facilities of the Toronto Stock Exchange for investment purposes, and may acquire further common shares, or dispose of their holdings of common shares both as investment conditions warrant.

For further information regarding these acquisitions please contact Peter Clateman, General Counsel, The Sputnik Group, Usadba Center, 22 Voznesensky pereulok, Moscow 125009, Russia, Tel: +7 (495) 725 50 68, pclateman@spkgroup.com.

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