Canadian Spirit Resources Inc. Announces 2014 Financial Results and Filing of Annual Disclosure Documents

CALGARY, ALBERTA -- (Marketwired) -- 04/28/15 -- Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE: SPI)(OTCBB: CSPUF) announces the release of its financial results for the three and twelve months ended December 31, 2014 including the filing of its 2014 annual audited Financial Statements, Management Discussion and Analysis ("MD&A"), and Forms 51- 101F1, F2 and F3.

This news release summarizes information contained in the audited Financial Statements and MD&A for the year ended December 31, 2014 and should not be considered a substitute for reading these full disclosure documents, and the Forms 51-101F1, F2 and F3, which are available on SEDAR at www.sedar.com or the Corporation's website at www.csri.ca.

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional natural gas sector of the energy industry. The Corporation has 5 (1.75 net) Montney wells being produced through its 10 MMcf/d (3.5 net) capacity joint venture gas plant located on its western lands at Farrell Creek/Altares, British Columbia.

SELECTED FINANCIAL DATA
(all amounts are presented in Canadian dollars, unless otherwise indicated)

                            For the three month       For the twelve month
                           periods ended December    periods ended December
                                    31,                       31,
                          -----------------------   -----------------------
                                2014         2013         2014         2013
----------------------------------------------------------------------------

Average sales volumes of
 natural gas (Mcf/d)             814        1,119          931        1,251
Average sales price of
 natural gas (per Mcf)   $      3.17  $      3.37  $      4.11  $      3.11
Natural gas sales,
 before royalties        $   235,660  $   346,394  $ 1,410,060  $ 1,417,310
Operating netbacks,
 after royalty credits
 applied                 $   155,027  $   257,204  $   896,328  $   793,778
Cash flow from operating
 activities              $    93,835  $   (15,132) $  (354,010) $  (400,989)
Net loss and
 comprehensive loss      $  (441,846) $  (512,650) $(3,463,732) $(1,911,295)
Loss per share, basic &
 diluted                 $     (0.00) $     (0.00) $     (0.03) $     (0.02)
Gross capital
 expenditures            $   419,192  $   243,673  $10,059,970  $ 1,344,663


                                                     As at December 31,
                                                ----------------------------
                                                          2014          2013
----------------------------------------------------------------------------

Net working capital                            $     4,256,090 $   3,586,837
Total assets                                   $    73,538,821 $  66,866,341
Shareholders' capital                          $    71,044,335 $  61,191,243
Number of common shares outstanding                128,867,192   100,124,691

HIGHLIGHTS

--  CSRI ended the year with a strong working capital position and no debt.

--  2014 was a pivotal year as CSRI transitioned into a Montney operator
    with the drilling of two 100% working interest horizontal wells.

--  In March 2014, CSRI drilled the first horizontal well at its 1-1-83-25W6
    location. This well was drilled for land retention purposes and allowed
    the Corporation to retain 9 sections of 100% working interest land for
    an additional term of five years.

--  In June 2014, the Corporation raised total gross funding proceeds of
    $7.8 million. The funding was comprised of units ($2.6 million), Flow-
    through shares ($3.5 million), and the exercise of share purchase
    warrants ($1.7 million). The proceeds were used for the drilling of the
    c-81-H/94-B-1 well in June/July 2014 and for general corporate purposes.

--  CSRI successfully drilled and cased its second 100% working interest
    horizontal well at c- 81-H/94-B-1. The well commenced drilling on June
    23, 2014 and was cased and rig released on July 31, 2014. Subject to
    financing, the well will be hydraulically fractured in the second half
    of 2015 and will be tied-in for production.

--  As a result of the drilling of the 1-1-83-25W6 well in the first quarter
    2014 and the c-81-H/94- B-1 well as noted above, the Corporation has
    extended the tenure on 9,961 gross acres (4,031 gross hectares) of land
    and increased CSRI's 100% working interest to 16,248 acres or 25.4
    sections. CSRI's net Montney acreage position at Farrell Creek is now
    26,044 acres or 40.7 net sections.

--  Competitor activity in the area continues to demonstrate the quality and
    value of CSRI's land and resource position at Farrell Creek/Altares.

--  A third party well, approximately 3.3 kilometers east of CSRI's 100%
    working interest lands was flow-tested up casing at an announced steady
    rate of 7.9 MMcf/d at a pressure of 1,250 psi. This well further
    highlighted the Montney potential in our area.

--  In November 2014, a third party purchased 20,633 acres of Montney
    exploration rights for $123.6 million in the Bernadet area approximately
    20 miles north of CSRI's core land position. At an average price of
    approximately $6,000 per acre for undeveloped acreage, this land value
    continues a trend set immediately adjacent to the Corporation's lands in
    November 2013 with the Petronas Energy Canada purchase of Talisman
    Energy Inc.'s lands for over $5,000 per acre.

--  On April 15, 2015 the National Energy Board approved the TransCanada
    Pipeline North Montney Mainline Project. This new 42 inch diameter
    pipeline will traverse CSRI's Farrell Creek lands and provide additional
    infrastructure for moving gas from Farrell Creek to the West Coast LNG
    projects as well as into the Alberta NGTL system.


--  On February 19, 2015, the government of Canada announced accelerated
    capital cost allowance rules for LNG facilities thus further enhancing
    the attractiveness of LNG projects in Canada.

Information regarding CSRI is available on SEDAR at www.sedar.com or the Corporation's website at www.csri.ca.

The corporate information contained in this news release may contain forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by CSRI at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently there is no representation by CSRI that actual results achieved during the forecast period will be the same in whole or in part as those forecast.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE

Contacts:
Canadian Spirit Resources Inc.
Rich Couillard
(403) 539-5005
[email protected]

Source: Canadian Spirit Resources Inc.

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