Infiniti Resources International Ltd.
TSX VENTURE : IRL

Infiniti Resources International Ltd.

August 05, 2005 08:00 ET

Welton Energy Corporation and Infiniti Resources International Ltd. Announce Completion of Arrangement

CALGARY, ALBERTA--(CCNMatthews - Aug. 5, 2005) - Welton Energy Corporation ("Welton") and Infiniti Resources International Ltd. (TSX VENTURE:IRL) ("Infiniti") are pleased to announce that the securityholders of Infiniti have voted on and approved the previously announced arrangement (the "Arrangement") proposed by the two companies. The vote was 100% in favour of the Arrangement. Final court approval has been obtained and closing of the Arrangement, including completion of corporate filings necessary to give effect to the Arrangement occurred on the morning of August 4, 2005. The common shares and common share purchase of warrants of Welton will be listed on the Toronto Stock Exchange under the trading symbols "WLT" and "WLT.WT" respectively, with trading expected to commence at the opening of markets on or about August 9, 2005. Infiniti shares will be delisted from trading at the same time.

Management of the combined entity will continue to be managed by the Officers and Directors of Welton, with the addition to the Board of Mark R. Smith, former director, Executive Chairman and Corporate Secretary of Infiniti.

Pursuant to the Arrangement, shareholders of Infiniti received one common share plus one quarter of a warrant of Welton for each five Infiniti common shares. Each full warrant of Welton gives the holder the right to acquire one common share of Welton at an exercise price of $1.75 for a term of two years from closing of the Arrangement. Post Arrangement Welton has approximately 33 million common shares outstanding.

As a result of the completion of the Arrangement, Welton has production of approximately 470 boe/d with additional production awaiting tie in and approximately 119,300 gross acres (26,600 net) of land and a number of identified drilling prospects. Welton also has approximately $35 million in tax pools. An active drilling program is continuing at Majeau (5 wells), Ricinus (2wells), Chime, Pica and Karr. Well completions are underway at Majeau, Medicine Lodge and Woking. Implementation of the Company's 94.75% owned Brazeau waterflood project has commenced.

Cautionary Statements

Certain information set forth in this document contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond these parties' control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of the preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Welton's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Welton will derive therefrom. Welton disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A barrel of oil equivalent (boe) is derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent. A boe conversion may be misleading, particularly if used in isolation, as it is based on an energy equivalency conversion method primarily applicable at the burner tip and may not represent a value equivalency at the wellhead.

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