Ms. Louisa DeCarlo reports

CANADIAN SPIRIT RESOURCES INC. ANNOUNCES OPERATIONAL UPDATE AND GRANT OF OPTIONS

As a result of the continued deterioration of the North American natural gas prices accompanied by the further discounted price experienced by producers in northeastern British Columbia producing into the Spectra main pipeline, Canadian Spirit Resources Inc. has shut in natural gas production at Farrell Creek due to a negative netback on joint venture natural gas production. At this time it is unknown when this production will resume. The corporation will provide another update to this evolving situation when appropriate.

The corporation granted to certain directors, executive officers and consultants of the corporation incentive stock options to purchase a total of up to an aggregate of 5.25 million common shares in the capital of the corporation pursuant to the terms of the corporation's amended and restated stock option plan. Certain stock options issued to independent directors vest immediately. The remainder of stock options issued vest as to one-quarter on the date of grant and one-quarter on each of the dates that are six months, 12 months and 18 months subsequent to the effective date of the grant. All of the stock options have a term of five years and may be exercised at a price of seven cents per share. Following the grant of stock options, the corporation has an aggregate of 16,675,000 stock options issued and outstanding at a weighted average exercise price of 8.1 cents per stock option.

About Canadian Spirit Resources Inc.

Canadian Spirit is a natural resource company focusing on the identification and development of opportunities in the unconventional natural gas sector of the energy industry.

We seek Safe Harbor.