Mr. Mark Jarvis reports

SHOAL POINT ANNOUNCES PROPOSED CONSOLIDATION AND PRIVATE PLACEMENT

Shoal Point Energy Ltd. intends to consolidate all of its issued and outstanding common shares on a 1:2 basis (one new common share for every two old common shares). The effective date of the consolidation and the new Cusip number for the common shares will be announced in the coming days.

In addition, the company announces a non-brokered private placement of up to 10 million units of the company at a price of five cents per unit (postconsolidation) to raise gross proceeds of up to $500,000. Each unit will consist of one postconsolidation common share and one postconsolidation common share warrant. Each warrant will entitle the holder to acquire one postconsolidation common share at a price of seven cents for three years following completion of the private placement. Finders' fees may be paid on a portion of the private placement and insiders of the company may participate in the private placement. All securities issued pursuant to the private placement will be subject to a statutory hold period of four months and one day from closing.

Completion of the consolidation and the private placement remains subject to the approval of the Canadian Securities Exchange. The company intends to use the net proceeds of the private placement for working capital.

About Shoal Point Energy Ltd.

Shoal Point Energy is a public company listed on the CSE exchange under the symbol SHP. The company is planning to wind up its oil and gas exploration activities in Kansas and retains its oil and gas interests in the Humber Arm Allochthon play in western Newfoundland. The company has filed a lawsuit against the government of Newfoundland and Labrador claiming at least $483-million for the constructive taking or de facto expropriation of the company's interest in certain exploration lands, among other claims.

We seek Safe Harbor.