Mr. Daniel Sanchez reports

CGX ENERGY ANNOUNCES US$2.5 MILLION LOAN AGREEMENT

CGX Energy Inc.'s subsidiary, CGX Resources Inc., has entered into a senior secured loan facility with Frontera Energy Corp., its joint venture partner in the petroleum prospecting licences for the Corentyne block, offshore Guyana, through one of Frontera's subsidiaries. The $2.5-million (U.S.) loan will enable CGX to continue to finance its share of costs related to the corporate working capital costs and other budgeted costs.

The loan to CGX Resources will be available for drawdown in tranches on a non-revolving basis for a period of six months commencing upon the completion of the conditions precedent to the first tranche drawdown. During the drawdown period, the borrower may request drawdowns as set forth below, provided that: (i) the maximum amount of any tranche drawdown shall not exceed $1.9-million (U.S.); and (ii) the aggregate amount of all tranche drawdowns by the borrower does not exceed $2.5-million (U.S.). The loan, together with all interest accrued, shall be due and payable one year after the date of this loan. Interest payable on the principal amount outstanding shall accrue at a rate of 19.32 per cent per annum, compounding on a monthly basis.

The loan remains subject to customary conditions, including CGX obtaining regulatory approvals.

The transactions described herein between Frontera and CGX are related-party transactions under Multilateral Instrument 61-101 but are exempt from the obligations to obtain a formal valuation and approval from a minority of shareholders. The material change report to be filed by CGX in connection with this news release will contain the required disclosure regarding such exemptions.

About CGX Energy Inc.

CGX is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname basin and the development of a deepwater port in Berbice, Guyana.

We seek Safe Harbor.