Mr. Mendel Ekstein reports

PETROLYMPIC COMPLETES FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT

Petrolympic Ltd. has completed the first tranche of a private placement of up to 3,378,387 flow-through shares at a price of 37 cents per flow-through share and up to 2,303,692 units of the company at a price of 32.5 cents per unit for maximum gross proceeds of $2-million.

In the first tranche of the private placement, the company raised gross proceeds of $1,057,950 by issuing a total of 2,524,500 flow-through shares and 384,600 units.

Each unit consists of one common share of the company and one-half of one common share purchase warrant, with each warrant entitling the holder thereof to purchase one additional common share at a price of 45 cents per warrant share for a period of 18 months from the date of issuance.

The proceeds from the private placement will be used to further the company's exploration and drilling programs on its properties in the Gaspe region of Quebec. Recent activity in this area has led to significant initial oil and gas production for other drillers, as well as very strong test results within the company's extensive Gaspe acreage.

The company expects to complete the second tranche of the private placement in the next few weeks.

As consideration for their services, Marquest Capital Markets and Secutor Capital Management Corp. received cash finders' fees equal to 5 per cent of the gross proceeds and that number of finders' warrants which is equal to 5 per cent of the total number of units and flow-through shares sold pursuant to the first tranche of the private placement, each finder's warrant exercisable into one common share of the company for a period of 18 months from the date of issuance at a price of 32.5 cents, in the case of finders' warrants issued for the subscribed units and 37 cents in the case of finders' warrants issued for the subscribed flow-through shares.

The issued securities carry a four-month hold period under Canadian securities laws from the date of issuance. The issuance of the flow-through shares, the units and the finders' warrants, and listing of the flow-through shares, the unit shares, the warrant shares and the finders' warrant shares pursuant to the private placement are subject to TSX Venture Exchange final approval.

We seek Safe Harbor.