Mr. Donald Moore reports

PHOENIX CANADA OIL ANNOUNCES DIRECTOR INCENTIVE STOCK OPTION GRANT

Phoenix Canada Oil Co. Ltd. has granted incentive stock options totalling 50,000 shares to Charles Burns, a director. The options are exercisable at $2 per share over a five-year term, fully vesting after three years, and starting as to 25,000 shares on the first anniversary date of the grant, and a further 25,000 shares on the second anniversary date of the grant. The stock option terms are defined in the company's shareholder-approved 2004 stock option plan.