PET Peat Resources Ltd. (delisted)

Peat Resources Limited (TSX VENTURE: PET) was formed to explore, develop and produce peat fuel - a sustainable bioenergy resource. The company is currently pursuing two major opportunities in Ontario and Newfoundland as part of its mission to build a North American peat fuel production company that will supply environmentally acceptable, economically competitive and consistent quality fuel for power generation and related industrial activities.

Peat Resources Limited is seeking a strategic partner to develop these opportunities - looking at up to 1 million tonnes annual production in Ontario and 5 million tonnes annually in Newfoundland - and is currently in discussion with companies in the utility, coal and forest products industries. IBK Capital Corp. has been engaged as a financial advisor to assist in this process and to raise necessary interim financing.

In Ontario, there has been considerable recent interest in the Ring of Fire mineral discoveries at McFaulds Lake in the James Bay Lowland. The Ontario provincial government has thrown its support to the Ring of Fire development and an important issue that must be addressed is the provision of reasonably priced power to satisfy the huge energy demand of the mining and especially the ore processing. Peat fuel can help the provincial government meets its promise to stop the burning of coal for electricity generation but keep the northern power plants running at full capacity (generating about 500 MW) to satisfy the future energy needs. Peat Resources Limited has NI 43-101 resources of fuel-grade peat in NW Ontario which can supply OPG's Atikokan and Thunder Bay generating stations for more than 20 years.

In Newfoundland, where Peat Resources Limited also holds rights to extensive peat fuel resources, there is an opportunity for large scale development of these deposits to produce up to 5 million tonnes per year of peat fuel pellets for export to trans-Atlantic markets. Several coal-burning power stations in the U.K. (generating about 7,000 MW) are under threat of closure by 2015 for failing to meet EU environmental standards. To avoid future energy shortages, acceptable alternative fuels are being sought. A biomass fuel such as peat satisfies European sustainability criteria. The large Newfoundland resources satisfy U.K. concerns about security-of-supply and can provide for long-term (+ 20 year) contracts.

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Contacts: Peat Resources Limited Peter Telford President and CEO 416 862-7885 416 862-7889 (FAX) peatfuel@peatresources.com www.peatresources.com