CER Circumpacific Energy Corp

Circumpacific Energy Corporation (TSX VENTURE:CER) ('Circumpacific') refers to
its announcement of October 19, 2009 concerning legal proceedings brought by
Drillsearch Energy Limited (ASX: DLS) ('Drillsearch') in the Supreme Court of
British Columbia ('Drillsearch proceedings').


On October 21, 2009 Circumpacific filed an Appearance giving notice of its
intention to defend the Drillsearch proceedings.


On October 23, 2009 Circumpacific filed and served its Statement of Defence in
the Drillsearch proceedings. A copy of the Statement of Defence is attached. To
view the Statement of Defence, please click the following link:
http://media3.marketwire.com/docs/1027cer_SOD.pdf.


Broadly, Circumpacific asserts that:

-  Mr Peter Simpson is a director of Circumpacific, and is entitled to
   remain in that position until the general meeting on November 26, 2009,
   at which time all existing directors automatically cease to hold office
   and the voting shareholders may elect a new board;

-  the directors of Circumpacific are under a mandatory obligation to
   manage and supervise the management of the business and affairs of the
   company, and have the authority to exercise all such powers, in
   accordance with the company's Articles and relevant governing laws;

-  the "protocols" demanded by Drillsearch, as set out in paragraph 46 of
   the Statement of Defence, are extraordinary and contrary to basic tenets
   of Canadian corporate law. It would be wholly inappropriate for the
   Circumpacific board to agree to those protocols;

-  Circumpacific is not in breach of its obligations under the Joint
   Evaluation Agreement with Drillsearch in relation to evaluation of
   Circumpacific's blocks in Queensland, Australia;

-  Drillsearch's failure to provide information to Circumpacific, and to
   give to Circumpacific access to accounts and records to which
   Circumpacific is entitled under the Joint Evaluation Agreement, is in
   contravention of Drillsearch's obligations to Circumpacific. As a
   result, Circumpacific has served notice invoking the mandatory dispute
   resolution provisions to resolve the dispute in accordance with the
   Joint Evaluation Agreement (paragraph 36). A copy of the notice of
   dispute under the Joint Evaluation Agreement is attached.

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