Canoel Signs MOU for Argentina Interest

Canoel has signed a memorandum of understanding with respect to the proposed acquisition of a private corporation which indirectly holds a 55% interest in certain Argentinean oil producing properties, for cash consideration of USD $1,456,000.00 and warrants entitling the holders to acquire up to 750,000 shares of the Company at an exercise price of $0.15 per share. The entering into of any transaction is subject to certain conditions, including due diligence by Canoel, the negotiation and entry into definitive agreements, regulatory approvals, including the approval of the TSX Venture Exchange. There is no assurance that a definitive agreement shall be reached on the proposed terms described above, or at all.

Andrea Cattaneo, CEO of Canoel said, "It is comforting to see our continuous efforts to make acquisitions of producing properties."