Mr. Bernard Lapointe reports

ARIANNE RESOURCES NEW DRILLING CONFIRMS THE POTENTIAL OF THE PAUL ZONE DEPOSIT

The management of Arianne Resources Inc. is providing the following operational update of its work on the Paul zone, one of two main deposits of the Lac a Paul phosphate project. The mineralized zone is identified as having a length of 1,200 metres by 200 metres wide and remains open to a vertical depth of 400 m. More than 4,125 m of drilling were completed. The company has received assay results from 14 of the 17 boreholes. One goal of this campaign was to confirm the continuity of the mineralized zone, as part of the process of upgrading the current inferred resources to the indicated category. The holes were drilled at an angle to define better the mineralized envelope. All of the updated results will be incorporated into the geological model developed by SGS Geostat, and a new resource calculation on the Paul zone will be available for the coming prefeasibility study.

The attached table shows the major intersections along the boreholes obtained.

                 DRILL RESULTS

Hole No.   % P2O5     % TiO2     Length   From X m to Y m

Pau-10-32    6.38       6.23      287.7      174.3 to 462*
Pau-10-33    7.21       8.76      290.1      3.5 to 293.6
Pau-10-34         Out
Pau-10-35    6.44       9.03        126        306 to 432*
Pau-10-36    7.95       6.96       42.7         4.3 to 47
Pau-10-37    7.46       8.56      324.2      6.6 to 330.8
Pau-10-38    6.69       8.68      215.3      135.7 to 351*
Pau-10-39    5.54      11.86         48       6.6 to 54.6
Pau-10-40    6.28      10.69      298.6      4.9 to 303.5*
Pau-10-41    7.18       8.50      384.4     11.1 to 395.5
Pau-10-42    5.08       5.46       67.6        4.40 to 72*
Pau-10-43    6.62       9.38      165.3    159.2 to 324.5*
Pau-10-44         Out
Pau-10-45    6.35       6.63      186.2        2.8 to 189

* Hole ended in mineralization

Canada Phosphate is the wholly owned subsidiary of Arianne and develops the Lac a Paul phosphorus-titanium deposits. These deposits will produce high-quality igneous apatite concentrate grading about 40 per cent P2O5 with little or no contaminant.

Serge Servant has resigned as a director. Mr. Servant remains as a technical adviser to the company for a period of one year.