To: brian krause who wrote (703 ) 12/12/2001 8:24:53 PM From: Al Collard Read Replies (1) | Respond to of 4470 ELK-t ...in the news:Elk Point Resources Inc. Raising Funds By Private Placement Of Flow-Through Common Shares CALGARY, ALBERTA--Elk Point Resources Inc. has entered into an agreement with a syndicate of underwriters for the private placement of 1,250,000 flow-through common shares under certain prospectus exemptions in the provinces of Alberta, British Columbia and Ontario subject to regulatory approval. The flow-through shares will be offered at a price of $4.15 per share to raise gross proceeds of $5,187,500. The gross proceeds of the offering will be used to fund the Company's natural gas and crude oil exploration activities in western Canada. The syndicate of underwriters led by Dundee Securities Corporation includes CIBC World Markets Inc., FirstEnergy Capital Corp., Griffiths McBurney & Partners and Haywood Securities Inc. This financing is expected to close on or before December 20, 2001 and is subject to regulatory approvals. Elk Point currently has 28.1 million shares outstanding, prior to this issue. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The flow-through common shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States or to a U.S. person except pursuant to available exemptions from registration. Elk Point Resources Inc. is a public company involved in the exploration, development and production of natural gas and crude oil in western Canada and the United States. Its shares trade on The Toronto Stock Exchange under the symbol "ELK".