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To: SSP who wrote (6933)	8/12/1999 11:25:00 AM
From: elcasmirb	Respond to of 150070

SHARPE RESSOURCES CORPORATION: SHARPE ENERGY COMPANY IS Attempting to Sell a 25 Percent - 50 Percent Interest in its Matagorda Project and is Currently Negotiating With Prospective Equity Buyers Business Editors HOUSTON, Texas--(BUSINESS WIRE)--Aug. 6, 1999--Sharpe Resources Corporation's (ME:SHO.) (OTC Bulletin Board:SHGPF)wholly owned subsidiary Sharpe Energy Company (SEC) is attempting to sell a 25 percent - 50 percent interest in its Matagorda project and is currently negotiating with prospective equity buyers. These expected funds will be utilized to pay off the mezzanine debt ($2.1 million) to EnCap Investments, L.C. (EnCap) of Houston, Texas, a wholly owned subsidiary of El Paso Energy Corporation (NYSE:EPG). This will allow vendors to be paid out of SEC's share (formerly Encap's share) of future cash flow as a possible payout plan. SEC's concern with regard to obtaining a timely agreement with its vendors (creditors) coincidental with selling an interest in Matagorda as well as preserving shareholder value has made it advisable to structure a workout plan through Chapter 11 bankruptcy filings for both Sharpe Resources Corporation and Sharpe Energy Company. At this juncture, SEC's secured debts include about $2.1 million in mezzanine lender debt to EnCap and approximately $2.8 million in vendor or payable debt. The majority of the trade debt, about $2.4 million, is attributed to the overrun on the Matagorda Island 582 No.5 well completed last October, 1998. Over the past 12 months, more than $300,000 in interest payments has been made to Encap. Since December 1998, the debt principal has been reduced from $3 million to approximately $2.1 million. The loan payments with Encap are current. If no new financing is obtained, SEC believes that the current production from the property, primarily the No.5 well, should be enough to pay off the balance of the mezzanine debt in approximately 10 months. According to SEC estimates, the reserves and fixed assets to secured debt coverage ratio is positive. The rate of payout of the vendor debt would also increase after the mezzanine debt is repaid in full. Current production at the Matagorda Island 582 field is 3.5 - 3.6 MMCFPD. The Matagorda 483 #1 well is temporarily shut-in for pipeline repairs. At full production in the currently perforated zones, the property should sustain about a 5 MMCFPD rate. When the selective completions are activated, SEC's expected production rates should increase to approximately 9 MMCFPD. Based upon the current proved developed reserves at Matagorda, SEC should be able to pay all debts without incurring any further development (drilling) expenditures. Furthermore, SEC has substantial gas reserves (15 bcf proved and 14 bcf probable/possible) with upside potential to double these figures and sustain growth into the future; however, the development of these reserves will require additional drilling capital. The Company believes that this action is the best course to preserve the asset values for its shareholders, to gain time to explore additional financing alternatives, and to help insure that all debt holders are paid on an equitable basis. All transactions are subject to regulatory approval. Sharpe Resources Corporation cautions that the statements made in this press release and other forward looking statements made on behalf of the Company may be affected by such other factors including, but not limited to, volatility of gas and oil prices, product demand, market competition, imprecision of gas and oil estimates, and other risks detailed herein and from time to time in the Securities and Exchange Commission filings of the Company. Copyright ¸ Southam Inc. All right reserved. Optimized for browser versions 3.0 and higher. "National Post is a production of Southam Inc., Canada's largest publisher of daily newspapers."

To: SSP who wrote (6933)	8/12/1999 11:27:00 AM
From: elcasmirb	Respond to of 150070

(SHO.) SHARPE'S FIRST QUARTER 1999 Results Business Editors HOUSTON--(BUSINESS WIRE)--June 17, 1999--Sharpe Resources Corporation (OTC BB:SHGPF) (ME:SHO.) is pleased to announce the unaudited results for its wholly owned U.S. subsidiary Sharpe Energy Company for the first quarter of 1999. In spite of relatively low gas prices (averaging US$1.73/mcf), the Company has shown a cash flow for the quarter before depletion and amortization of approximately US$667,000 ($.02/share) after royalty deductions versus US$131,931 (lesser than 0.01 per share) for the same period in 1998. Total revenue for the first quarter was approximately US$1.27 million. Of this figure approximately US$240,000 was paid in royalties to the Texas General Land Office leaving net revenue of slightly more than US$1 million. The May price for gas is approximately US$2.38/mcf or roughly a US$0.65/mcf increase over the first quarter numbers. These figures should result in significant improvements to the second quarter cash flow. The Company is continuing to pay down its current bank loan which stands at US$2.2 million as of June 15, 1999. Sharpe is progressing with its plans to complete a financing during this difficult period to raise funds. The funds will be used to retire debt, drill another well at Matagorda, and close a property acquisition. Sharpe Resources Corporation cautions that the statements made in this press release and other forward-looking statements made on behalf of the Company may be affected by such other factors including, but not limited to, volatility of gas and oil prices, product demand, market competition, imprecision of gas and oil estimates, and other risks detailed herein and from time to time in the Securities and Exchange Commission filings of the Company. Visit our Web site at sharpe-resources.com. Copyright ¸ Southam Inc. All right reserved. Optimized for browser versions 3.0 and higher. "National Post is a production of Southam Inc., Canada's largest publisher of daily newspapers."