Mr. Nick DeMare reports

EAST WEST PETROLEUM PROVIDES CORPORATE UPDATE

East West Petroleum Corp.'s board of directors has approved, subject to shareholder approval, distribution of capital to the shareholders. The distribution is intended to be structured as a return of capital to the company's shareholders as of a record date to be determined in the near future.

The company will call an annual and special meeting of its shareholders, to approve, among other things, a reduction in the stated capital of the company, by approximately $3-million, pursuant to the Business Corporations Act (British Columbia), for the purposes of distributing to the holders of common shares of the company this $3-million cash. The capital reduction and the distribution are subject to, among other things, the receipt of shareholder and regulatory approvals. There can be no assurances that the capital reduction and the distribution will receive the required approvals, or that the company will proceed with the capital reduction or the distribution. Further details in respect of the capital reduction, the distribution and general meeting matters will be announced when determined.

In addition to the distribution the board has also approved a capital consolidation of 1 for 10. At this time the company has 90,485,665 shares issued and outstanding and post consolidation there will be 9,048,566 shares issued and outstanding. The consolidation will only be implemented in conjunction with the return of capital.

Post distribution and postconsolidation the company will have working capital sufficient to maintain operations for a significant period of time while it pursues opportunities in the natural resource exploration and development sector. The company anticipates completing a transaction within six months and as such should avoid tier movement.

Further news will be issued as the company advances this restructuring plan.

We seek Safe Harbor.