Mr. Grant Hall reports

CANADA ENERGY PARTNERS ANNOUNCES PRIVATE PLACEMENT OF CONVERTIBLE DEBENTURES

Canada Energy Partners Inc. has arranged a private placement of convertible debentures to secure up to $150,000. The convertible debentures will be non-interest bearing and will have a maturity date of 12 months, and the principal amount may at the option of a holder be converted into units consisting of a common share at an issuance price of five cents and a share purchase warrant entitling the holder thereof to acquire an additional common share at an exercise price of 7.5 cents for a period of 12 months.

Subject to approval of the TSX Venture Exchange, the corporation may pay a finder's fee in cash or finders' warrants to arm's-length finders in amounts to be negotiated. The corporation intends to use the net proceeds of the private placement for working capital.

All securities to be issued in connection with the private placement will be subject to a four-month hold period from the date of issue in accordance with applicable securities laws. Completion of the private placement is subject to approval of the exchange.

We seek Safe Harbor.