HABIBI RESOURCES CORP ("HAB-V") - Closes First Tranche Of Non-Brokered Private Placement Habibi Resources Corporation ("Habibi" or the "Company") is pleased to announce that we have closed the first tranche of a non-brokered private placement in respect to which the Company has issued 725,000 flow through shares to twelve placees and 300,000 non-flow through shares to three placees at a price of $0.10 per share. Also, the placees have received 1,025,000 non-flow through share purchase warrants to purchase shares at an exercise price of $0.20 per share until October 7, 2009. A finder's fee in the form of 102,500 non-flow through warrants on the same terms has been issued. These securities have a hold period which expires on February 7, 2009.

The Warrants will have an accelerated feature so that after the mandatory hold period has passed, if the shares of the Company trade at a price of $0.30 per share or higher for a period of ten consecutive trading days, the placees will have a further fourteen trading days to exercise the said Warrants. If the Warrants are not exercised in that period, they shall be cancelled.

Habibi Resources Corporation has completed the purchase of coal rights to the Bow River Coal Field in the La Ronge area of North Central Saskatchewan from 0828399 B.C. Ltd., a privately owned British Columbia company, for an initial consideration of cash of $25,000, 120,000 shares of the Company's common stock on royalties on future production.

The Company has settled all disputes with Mahalo Energy Ltd. regarding interests that Habibi held in wells in the Ronalene field in Alberta. These interests were purchased in the early 1970's. For many years, the wells produced a significant cash flow for Habibi. However, in recent years, the field matured, generating approximately 100 barrels of water for each barrel of crude oil. The higher level of operating costs generated a loss for Habibi, despite the increase in the price level of crude oil.

The Settlement releases and discharges Habibi from any debts, claims and liabilities from these wells past, present and future. Habibi surrendered its interests in the wells to Mahalo. The action removes all debt from Habibi's Balance Sheet, other than loans from the Lanzet family to the Company.

After paying for the acquisition of the coal property, Habibi's cash position is approximately $300,000.

Habibi has received unsolicited offers for the sale of two leases from its portfolio of 23 U.S. oil and gas leases, with an indication of interest for the purchase of the remainder of the portfolio from another entity.

Earlier this year, Habibi sold one lease from the portfolio for approximately eight times the purchase price of the lease. The U.S. leases are not a core operation of Habibi's business going forward and will be sold to free up cash.

The Company has $45,000 in an escrow account from the abandonment of a well drilled late last year.

Habibi's aforementioned cash position will be augmented by the sale of extraneous assets and the eventual release of escrowed funds.

HABIBI RESOURCES CORPORATION Per: "W.E. Schmidt" WILLIAM E. SCHMIDT, Secretary

For more information about Equus, please contact Stanley Lanzet, at 604-218-2677.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Capitalization Report for Habibi Resources Corp Shares Issued: 7709328 Shares Escrow: 0

TSX Venture closing price for Habibi Resources Date: 2008/10/10 Closing Price: 0.060