Highlights from the Byron Capital Markets Research Report

- The Montney has been the focus of increased attention as international companies seek new sources of reserves.

- Canadian Spirit Resources Inc. (SPI) has a strong cash position of $14.0 M and their joint ventures are proceeding at no cost to the company.

- The upper Montney has been the target of other companies in the area and their success has significantly derisked the upper Montney play in the Farrell Creek area.

- The b-17-I well completed in Q4 '09 targeted the lower Montney and the test "exceeded expectations and should lead to further exploitation of the lower Montney in the Farrell Creek area." This is significant because SPI now has an additional zone capable of adding greatly to their prospective resource and eventually adding to their reserves and production.

- The Montney recovery factor can range from 20% to 50%. Byron 's share value of $3.00 is based upon 100 bcf/section and a 15% recovery factor. Given that the Montney could contain up to 350 bcf/section (some estimates are as high as 700 bcf/section) and recovery rates could be as high as 50%, Byron notes that there is significant upside under the best case scenarios which can also be seen from our calculations and summary. Higher recovery rates and higher gas prices would have a substantial impact on share prices

- SPI has set a goal of meaningful productivity, revenue and reserves from its Montney play by the end of the year.

- Talisman has been very active on its lands adjacent to SPI and has moved their Farrell Creek project into commercial development. Talisman's exploration success has significantly derisked the Montney play in this area.

- Sproule will be releasing a resource report on SPI's Montney lands in April.

- SPI has a highly prospective land position in the Montney and Byron has initiated coverage with a BUY recommendation and a $3.00 initial price target.

Byron Capital Markets Issues Research Report on SPI

Byron Capital Markets issued a Research Report on Canadian Spirit Resources (SPI)today. They have set a target price of $3.00. More to come from the report shortly.

Canada Energy Partners to Frac Horizontal Well

Canada Energy Partners (CE), Canadian Spirit Resources Inc.'s (SPI) neighbor to the south, announced today that it will frac its first horizontal well. From the news release, "the completion will test 1000 meters of consistent Montney resevoir encountered in the lateral section which exhibited encouraging natural gas responses throughout."

Neighboring companies like CE completing Montney wells and exploration success by Talisman Energy significantly derisks SPI's Montney shale lands.

Dundee Capital's Updated Energy Watch List

Dundee Capital updated their Energy Watch List and included very positive comments in regard to Canadian Spirit Resources Inc. (SPI). Their summary states that "asset acquisitions and Talisman Montney update provides further support for the expansion of Montney activity in Northeast British Columbia."

From the update, "the future for Canadian Spirit continues to burn bright and is further supported with the recent asset and land acquisition by Progress Energy." They also state that "these events speak to the excitement surrounding the expansion of the Montney fairway further to the west in British Columbia and more specifically in the vicinity to Canada Spirit."

Dundee concludes "as a result of the asset and land acquisitions along with the recently announced Montney production guidance from Talisman Energy, it provides further support to the potential commerciality and the extenstion of the Montney play in northeast British Columbia... We believe Canadian Spirit continues to provide investors with a great opportunity to gain acess to an up and coming Montney player with plenty of potential production and reserve growth to look forward to."

Anadarko announces JV agreement with Mitsui E&P

Anadarko Petroleum announced on February 16 that it entered into a JV agreement with Mitsui E&P. Mitsui paid $14,000/acre to participate in Anadarko's Marcellus shale development project. Goldman Sachs comments "for the sector, another US shale gas JV supports our view that JV's, spinoffs and M&A will be a key 2010 theme for the E&P's, which can drive premium stock valuations despite low gas prices."

The $14,000/acre lends further credibility to the prices paid for acreage adjacent to Canadian Spirit Resources Inc. (SPI) at the October '09 BC land sale and demonstrates that SPI is clearly undervalued at its current stock price.

Mitsui must believe that there is a significant future for North American natural gas and this deal is a positive statement about gas in general.

GMP Securities sees upside in Canada Energy Partners deep rights

GMP Securities issued a report on Canada Energy Partners Inc. (CE) on February 12. They see significant value in CE's Montney lands. "The bigger upside potential in this story in our opinion comes from CE's deeper rights in the area that are in the heart of some of the most highly watched Montney drilling activity in north eastern British Columbia."

Another nice example of an analyst seeing upside potential of a company developing the Montney shale in NE BC. CE is Canadian Spirit Resources Inc.'s (SPI) neighbor to the south.

It's also worth noting that GMP sees value for CE's CBM project. They state the CE is "encouraged by the initial gas flow rates." GMP also stated that "management expects the gas volumes to increase for several years before peaking and rolling over into a long shallow decline."

Raymond James report on Montney includes comment on the Montney shale

Raymond James released a report on Progress Energy Resources Corp. on February 11. They calculate a $1.05/mcf unrisked value for the company's Montney land. RJ risks the lands at 75% for a value of $0.79/mcf. This far exceeds the current valuation of Canadian Spirit Resources Inc.'s (SPI) Montney land which is between $0.04/mcf and $0.12/mcf. RJ's report clearly demonstrates significant upside potential for SPI's stock price.

Additionally, Progress has announced a "more aggressive 2010 capital program which includes further development of its prospective Montney land." Announcements like this continue to highlight the Montney shale and bring attention to companies in Northeast BC.

Craig Stanley of Pinetree Capital Recommends SPI on Business News Network

Craig Stanley of Pinetree Capital recommends Canadian Spirit Resources Inc. (SPI) on Business News Network. He says that the Montney is really hot and one of the juniors, SPI, "has room to run with big partners to do their heavy lifting and spending big bucks." He also acknowledged that there's always the takeover game in the Montney and Talisman is all over that play.

Watch this clip at the 5:48 mark:
http://watch.bnn.ca/#clip263986

Forecast of colder temperatures across the nation send gas futures up $0.28/mmbtu

Natural gas futures are up $0.28/mmbtu on forecasts for below normal temperatures across most of the nation. Both the 6-10 day forecast and 8-14 day forecast predict cooler temperatures.