Mr. Grant Hall reports

CANADA ENERGY PARTNERS ANNOUNCES AMENDMENT TO TERMS OF CONVERTIBLE DEBENTURES

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

The amended terms of the convertible debentures are subject to approval of the TSX Venture Exchange. 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.

We seek Safe Harbor.