Compliance Energy Corporation (the "Company") announces that it has signed an exclusive Memorandum of Understanding ("MOU") with ITOCHU Corporation and LG International Corp. ("the Parties") for the development of the Raven Coal Project located on Vancouver Island. Under the terms of the MOU the Parties will make an initial payment of $600,000 to secure exclusivity in the project and subject to the favourable outcome of due diligence will fund the next $5.4 million in payments to earn up to a 50% interest in the Raven Coal Project. The $5.4 million will be spent as follows: $2.4 million to complete the purchase of the property and up to $3.0 million for environmental assessment studies and a bankable feasibility study. The MOU provides for a due diligence period up to May 31, 2008 at which time the Company and the Parties expect to have definitive agreements signed.