Arcan Resources Ltd. CALGARY, Alberta, TSX.V : ARN, is a high-growth junior producer with a balanced portfolio of assets located in the Deer Mountain, McLeod and Hamburg areas. The Company achieved a public listing through the RTO amalgamation of Desco Energy Ltd. and Arcan Resources Ltd. Arcan began trading on the TSX Venture exchange under the symbol “ARN” on January 09, 2007.

THIRD QUARTER 2008 HIGHLIGHTS

• The Company increased production, revenue, cash flow from operating activities, funds from operations, netbacks and net income over Q3, 2007
• The Company increased production to 1,444 boe per day for the three months ended September 30, 2008 up 11% over the 1,304 boe per day in Q3, 2007 and down 10% from1,604 boe per dayin Q2, 2008
• Operating netbacks of $56.64 per boe (revenue of $103.03 per boe and operating cost of $18.68 per boe) were up 37% from $41.49 per boe in Q3, 2007 and down 25% from $75.95 per boe in Q2, 2008
• Funds from operations increased 69% to $6.7 million ($0.17 per diluted share) from $4.0 million ($0.11 per diluted share) in Q3, 2007 and down 30% from the $9.6 million ($0.24 diluted per share) in Q2, 2008
• Drilled five (4.0 net) oil wells including one water source well in Deer Mountain;
• Bank line increased to $50 million from $40 million with net debt and working capital of $32.4 million at September 30, 2008
• In early Q4 2008, successfully drilled its first oil well on its new 59 section block of lands south and adjacent to its Deer Mountain Unit property. Arcan’s management expects that this well will prove up additional reserves and demonstrate drilling opportunities south and east of Arcan’s existing unit.

Projects

Arcan has 3 core areas: Hamburg, McLeod and Deer Mountain. All of these areas are high impact long life multi-zone in the west five and west six areas of Central and Northern Alberta.

Arcan is operator of 95 percent of our production and controls its infrastructure in both Deer Mountain and in Hamburg, both of which are now under waterflood.

Arcan is approximately 75 percent oil weighted and all of our oil production is greater than 40º API sweet crude. For the year ended December 31, 2007 Arcan achieved a top quartile 17.5 year reserve life.

Arcan targets to achieve better than a 2.0 recycle ratio(defined as Revenue less royalties and operating costs divided by FD&A costs), which means that for every barrel Arcan produced it endeavors to find two more.

For 2008 Arcan is targeting average daily production of 1,500 Boe/d.

Arcan has a large exploration and development inventory in each of its three areas. Arcan and its 18 dedicated employees are focused on one key goal of adding net asset value per share.

Arcan is a full cycle exploration company through the drill bit and will add acquisitions that consolidate our holdings or accelerate our growth, but our ongoing success does not depend on acquisitions, rather it is enhanced by such strategic acquisitions.