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To: Mr Metals who wrote (17656)	12/22/1999 4:30:00 PM
From: elcasmirb	Read Replies (1) \| Respond to of 150070

For anyone interested......... Sharpe Files Proposed Reorganization Plan Business Editors HOUSTON--(BUSINESS WIRE)--Dec. 20, 1999-- SHARPE(ME:SHO.) (OTC Bulletin Board:SHGPF) SHARPE RESOURCES CORPORATION, Sharpe Resources Corporation's wholly owned subsidiary Sharpe Energy Company (SEC) announced today that the Company has filed with the U.S. District Bankruptcy Court of the Southern District of Texas a proposed plan of reorganization in accordance with federal bankruptcy laws. The plan of reorganization sets forth the means for satisfying claims, including liabilities subject to compromise and subsequent adjustments to the plan. In general the proposed plan provides for the following: Secured debt (which includes principal balance plus accrued interest as of August 1, 1999 of approximately $2.5 million) will receive on the effective date of the plan an initial payment of at least $1 million to be applied to principal plus all accrued and unpaid interest and all reasonable fees and expenses. The balance of the principal, together with interest, will be repaid over 18 months. The agreed to secured (vendor) lien claims can take a secured note at closing and receive payment in full in quarterly payments over two years at 6 % interest. (Payments would commence 90 days after the payment of the secured debt has been paid in full.) Alternatively, the secured (M&M) lien claims have the option to accept a payout of 50 % of the allowed claim on the latter of the effective date, the allowance date or the closing date in full satisfaction of its claim. The unsecured claims can take a note at closing and receive payment in quarterly payments over two years. (Payments will commence 90 days after the date that the secured and secured [vendor] lien claims have been paid in full.) Alternatively, the unsecured claims will have the option to accept a payout of 25 % of the allowed claim on a pro rata basis within 30 days after the closing date. Sharpe Resources Corporation has negotiated a US$2.3 private placement financing. Schwartz Investments Corporation and Palos Capital Corporation of Montreal, Quebec have agreed to complete a US$2.3 million debenture financing subject to a due diligence evaluation, US Bankruptcy Court and regulatory approvals. The term of the debenture is five years, 12 % fixed interest rate coupon with quarterly interest and principal payments which includes 2.3 million warrants exercisable for three years at $C0.25 per warrant. This transaction is expected to close by the end of February 2000. The consummation of a plan of reorganization will require bankruptcy court approval and is expected to be voted on by the Company's creditors and shareholders entitled to vote. At this time, no assurances can be given that the plan of reorganization submitted by the Company will be approved or when the effective date of the plan will be set; however, at the present time, the Company anticipates that a hearing to consider its plan will be scheduled in early January, 2000. It is not possible to predict the outcome of the bankruptcy proceedings and its effect on the business of the Company or on the interests of creditors and stockholders. 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 website at sharpe-resources.com