EnCana Recommends Rejection of Mini-Tender Offer

EnCana Corporation (TSX, NYSE: ECA) has received a copy of an unsolicited mini-tender offer made by TRC Capital Corporation (TRC Capital), pursuant to which TRC Capital has offered to purchase up to 2,000,000, or approximately 0.25 percent, of the outstanding common shares of EnCana. The offer price of C$54.50 per common share represents a 3.96 percent discount to the C$56.75 closing price for EnCana's common shares on the Toronto Stock Exchange on January 31, 2006, the day before the offer was made.

EnCana recommends that its shareholders reject this unsolicited offer. EnCana wishes to inform its shareholders that it is not associated with TRC Capital, the offer or the offer documentation. TRC Capital's unsolicited offer is not related to EnCana's previously announced normal course issuer bid for the purchase, from time to time, of up to 85,603,640 of its common shares on the facilities of the Toronto Stock Exchange and the New York Stock Exchange.

Securities regulators in the United States and Canada have recommended that shareholders exercise caution in connection with mini-tender offers and that they consult their investment advisors regarding these types of offers. The U.S. Securities and Exchange Commission has published investor tips regarding mini-tender offers on its website at: http://www.sec.gov/investor/pubs/minitend.htm

Comments from the Canadian Securities Administrators on mini-tenders can be found under Staff Notice 61-301 at: http://www.osc.gov.on.ca/Regulation/Rulemaking/Current/Part6/csa_19991210_61-301.jsp

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