Mr. Mark Lawson reports

CLAREN ENERGY CORP. ANNOUNCES SHARES FOR DEBT TRANSACTION

Claren Energy Corp. proposes to settle total outstanding indebtedness of $629,799 owed to certain creditors through the issuance of 5,284,325 common shares at a price of 12 cents per share.

The shares issued in connection with the shares-for-debt transaction will be subject to a four-month-and-a-day hold period, in accordance with applicable securities laws. The shares-for-debt transaction is subject to the acceptance of the TSX Venture Exchange.

Nico Civelli, a director of the company, proposes to settle $30,000 of indebtedness through the issuance of 250,000 shares at a price of 12 cents per share. As such, the shares-for-debt transaction constitutes a related party transaction under Multilateral Instrument 61-101. The shares-for-debt transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as the fair market value of the shares to be issued to the insider does not exceed 25 per cent of the company's market capitalization.

About Claren Energy Corp.

Claren is a company continued under the laws of the Business Corporations Act (British Columbia). Claren has been actively evaluating and seeking alternative business.

We seek Safe Harbor.