Mr. William Wylie reports

VALPARAISO ENERGY INC. TERMINATION OF LETTER AGREEMENT FOR ASSET PURCHASE

Valparaiso Energy Inc.'s letter of intent with a major Canadian exploration and production company to purchase producing oil and gas assets in north-central Alberta has been terminated. The termination of the letter of intent is the result of the major Canadian exploration and production company's decision not to sell the aforementioned assets due to a change in corporate policy.

The corporation will continue to evaluate future oil and gas opportunities.