Mr. Rich Couillard reports

CANADIAN SPIRIT RESOURCES INC. ANNOUNCES YEAR END 2018 FINANCIAL RESULTS

Canadian Spirit Resources Inc. has released its financial results for the three and 12 months ended Dec. 31, 2018. It has also filed its 2018 annual audited financial statements, management discussion and analysis, and forms 51-101F1, F2 and F3.

This news release summarizes information contained in the audited financial statements and management discussion and analysis for the year ended Dec. 31, 2018, and should not be considered a substitute for reading these full-disclosure documents and the forms 51-101F1, F2 and F3, which are available on SEDAR or the corporation's website.

Canadian Spirit Resources is a natural resources company focused on the identification and development of opportunities in the unconventional natural gas sector of the energy industry.

                                     SELECTED FINANCIAL DATA
   
                                                For the three-month               For the 12-month     
                                              periods ended Dec. 31,         periods ended Dec. 31,  
                                               2018            2017            2018           2017 
Average sales volumes of 
natural gas (mcf/d)                               -             568             541            639 
Average sales price of 
natural gas ($/mcf)                      $        -     $      0.53     $      1.77    $      1.63 
Petroleum and natural gas sales          $        -     $    27,495     $   114,749    $   378,912 
Operating netback                        $   (25,194)   $   (47,108)    $   (78,488)   $    59,188 
Cash flow from operating activities      $  (168,031)   $  (184,516)    $  (903,961)   $  (654,309)
(Loss) and comprehensive (loss)          $(6,376,867)   $  (858,487)    $(7,362,931)   $(1,988,470)
-- per share basic and diluted           $     (0.03)   $         -     $     (0.04)   $     (0.01)
Capital expenditures                     $   143,576    $   215,140     $   650,263    $   620,519 

Highlights:

• Canadian Spirit Resources ended 2018 with a strong working capital position and no debt.
• The corporation raised a total of $1.4-million of equity by way of a rights offering in the fourth quarter of 2018.
• Liquified natural gas (LNG) exports from the west coast of Canada have long been seen as a significant source of value creation for natural gas producers in northeastern British Columbia. On Oct. 1, 2018, the LNG Canada ownership group comprising Shell (40 per cent), Petronas (25 per cent), Petrochina (15 per cent), Mitsubishi (15 per cent) and Kogas (5 per cent) announced that it had made a final investment decision to proceed with its $40-billion natural gas liquefaction facility at Kitimat, B.C.
• The board and management continue to review strategic alternatives in order to maximize the value of its Montney formation resource base at Attachie and Farrell Creek/Altares.

We seek Safe Harbor.