Canoro Commences Well Workover Operations in India

Canoro Resources has contracted a second rig which has commenced operations on the Dergaon # 1 well on the AA-ON/7 block. The work program on the well (which is a gas discovery well drilled in 1973) provides for a long term deliverability test as part of Canoro's strategy to provide justification for drilling an appraisal well, book reserves and to expand its gas markets in Assam. The rig will be available for up to a four month period.

Canoro also reports that the previously contracted Chinese rig has received customs clearance in Mumbai, India and is expected to commence the move by land before the end of this week. The rig will be transported directly to the Amguri well # 1 in Assam to commence workover operations. The rig move is expected to take approximately three weeks. The rig is available for a minimum period of six months.

Land negotiations for the access road and drilling pad location for the South Jorhat #1 exploratory well on AA-ON/7 block are progressing well. Drilling operations are anticipated to commence during the second quarter of 2005.

Les Kondratoff, President and CEO, stated that, "Shareholders of Canoro have waited a long time for the operations to commence on its blocks in Assam. We are excited about starting our work program comprising of a long term deliverability test on Dergaon #1 well, a three well workover program on the Amguri discovered field to rehabilitate production from three existing suspended oil wells, the testing of an existing gas producing well on the Amguri block and the drilling of our first exploration well on the AA-ON/7 block. The addition of a second rig will accelerate the pace of our operations in Assam."