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Exploration and development of opportunities in the unconventional gas sector - JV - Shell Canada Energy.

Message: NR production begins...more wells

CALGARY, ALBERTA, Feb. 1, 2011 (Marketwire) --

Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI) (PINK SHEETS:CSPUF) is pleased to announce that CSRI's joint venture with Canbriam Energy BC Partnership ("Canbriam") in Farrell Creek, B.C. has entered the production phase. With CSRI's new Farrell Creek gas plant coming on line, natural gas has begun flowing from three previously completed and tested lower and upper Montney Formation horizontal wells. CSRI now joins Canbriam and Talisman Energy as a natural gas producer from the Montney Formation in the Farrell Creek/Altares area.

CSRI's Chief Executive Officer, Don Gardner commented that "The commissioning of the new Farrell Creek gas plant and our first production from the Montney Formation are milestone events for CSRI and our shareholders. This facility will enable the joint venture to perform long-term production testing of its Montney wells and reduce the need to flare gases to the atmosphere. Importantly, this testing during 2011 will allow the joint venture to develop a production profile of the Montney wells at Farrell Creek. Shareholders will be pleased that net operating revenue is expected to fund CSRI's projected 2011 overhead expenses."

The Farrell Creek gas plant is scaled for a capacity of up to 50 million cubic feet per day (mmcf/d), with an initial capacity of 10 mmcf/d. CSRI has retained a 35% working interest in both the facility and the gas produced.

Initial production is coming from two lower Montney horizontal wells c-A48-I/94-B-1 and b-17-I/94-B-1, as well as the c-18-I/94-B-1 upper Montney horizontal well. Placing these wells on production is expected to be followed by the completion and tie-in of the c-45-I/94-B-1 horizontal well and the drilling of the sixth horizontal well into the Montney Formation at Farrell Creek by the end of Q1 2011. In order to achieve operating efficiencies, the previously drilled c-A18-I/94-B-1 horizontal well is expected to be completed and tied-in following spring breakup.

Since exploration work commenced on the Farrell Creek Montney prospect in the second half of 2008, the joint venture has drilled two vertical and five horizontal wells into the Montney Formation and has now achieved its first production.

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry.

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