Spry Acquires Golden Eagle Energy



Spry Energy Ltd. has completed its previously announced acquisition of Golden Eagle Energy Inc. ("Golden Eagle") by way of a plan of arrangement (the "Arrangement") under the provisions of the Business Corporations Act (Alberta). Pursuant to the Arrangement, Spry exchanged 0.1406 of a common share of Spry for each Golden Eagle common share, or $0.745 in cash for each Golden Eagle common share, subject to the maximum amount of cash totaling $3,725,000. As a result, Spry issued approximately 1.85 million common shares.

A special meeting of shareholder of Golden Eagle was held January 14, 2008 where such shareholders were asked to approve the Arrangement. Over 95% of the votes cast by the Golden Eagle shareholders present at the meeting were voted in favour of the resolution. Following the meeting, the Arrangement was also approved by the Alberta Court of Queen's Bench. Upon successful completion of the Arrangement, Mr. Daryl Gilbert, formerly the Chairman of the Board of Golden Eagle, was appointed as a director of Spry.

Immediately prior to completion of the Arrangement, Golden Eagle had production of approximately 240 boes per day, a working capital surplus of approximately $1.0 million, no debt, 34,000 net acres of undeveloped land and $30 million in tax pools. Spry operates a joint property with Golden Eagle in Utikuma, Alberta and has several oil properties in southeast Saskatchewan in close proximity to Golden Eagle properties. Upon successful completion of this transaction, Spry's production rate is approximately 1,440 boes per day.