Gentry Closes Alberta Acquisition

Gentry Resources Ltd has closed its previously announced Share Purchase and Sale Agreement (the "Acquisition") to acquire certain oil and natural gas assets located in West Central Alberta and the Peace River Arch area of Northern Alberta (the "Acquisition"). The Acquisition has an effective date of April 1, 2007, with Gentry's total consideration being $74.25 million, subject to normal closing adjustments.

The key attributes of the Acquisition are as follows:

--Current production of approximately 1,600 boe/d comprising 80% natural gas.
--Reserves, as estimated by GLJ Petroleum Consultants Ltd., the vendor's independent engineering consultants, of 2.51 million boe proved reserves and 3.83 million boe proved and probable reserves as of December 31, 2006.
--Acquisition costs, net of land and seismic values, are $39,000 per producing boe, and, based on the December 31, 2006 reserves, $25.00/boe on a proved basis and $16.38/boe on a proved plus probable basis.
--Operatorship of 85% of current production.
--The Reserve Life Index for proved and probable reserves is approximately 6.56 years as measured by the GLJ Reserve Report.

The West Central lands comprise approximately 67% of the Acquisition's proved and probable reserve value. There are three core operated high working interest properties - Gilby, Mikwan and Rosevear. Development and infill drilling opportunities have been identified in each of these areas and high impact drilling potential also exists. These areas are all located in a multi- zone gas-prone fairway with medium depth drilling opportunities.

The Peace River area lands comprise approximately 28% of the Acquisition's proved and probable reserve value. This region of the Arch is characterized by multi-zone production from various formations including the Dunvegan, Paddy, Spirit River, Bluesky, Gething, Halfway and Montney. There are a number of exploration and development locations there that the Company plans to drill this year.

The Acquisition was financed in part by bank debt, as the Company's Credit Facilities were increased from $50 million to $72.5 million in conjunction with the Acquisition, and by the net proceeds from the sale of 12,500,000 subscription receipts at $4.00 per subscription receipt sold as part of a bought deal financing under which the Company issued the subscription receipts and 3,750,000 common shares of the Company at $4.00 per common share for aggregate gross proceeds of $65 million. Holders of the subscription receipts are deemed to have received one common share of the Company for each subscription receipt held, effective at the time of closing of the Acquisition and as a result, Gentry currently has 55,197,793 common shares outstanding.


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