Deep Resources has agreed to issue by way of a private placement
an aggregate of up to $3,000,000 of Flow-through Common Shares of the Company, on a best efforts agency basis. The Flow-through Common Shares are priced at $1.00 per Share. The Shares will be issued pursuant to prospectus exemptions available under applicable securities legislation in Alberta, British Columbia
and Ontario. Jennings Capital Inc. will act as lead agent on the private placement. The Company will use the proceeds for oil and gas exploration expenditures.
The financing is scheduled to close on or before November 30, 2005, and is conditional upon receiving regulatory approval, including approval of the TSX Venture Exchange and completion of definitive documentation.