Candex Corrects Inaccurate Reports

Candax Energy reports that certain inaccurate information relating to the sale of securities of Candax by insiders of the Company has been disseminated on internet message boards over the past several days. The Company directs interested parties to SEDI (System for Electronic Disclosure by Insiders - for an accurate record of trades of Candax securities by insiders.

Candax wishes to clarify that no such sales have been made by insiders and to confirm that directors and management have been blacked out from trading since June 28, 2007 pending the release of second quarter results and that the blackout remains in place in accordance with the Company's corporate governance policies.

As a brief update on the El Bibane re-development project, the drilling operations at EBB4 are on track with the 30" conductor set and 20" casing cemented to 404 meters. Operations are currently underway to drill the 17 1/2" hole. Candax will provide further operational updates as required.