Pearl Exploration & Production Increases Private Placement

Pearl Exploration and Production has agreed to increase the private placement announced on October 3, 2007. The Company will now sell, on a bought-deal, private placement basis, an aggregate of 29,400,000 common shares of the Company at a price of Cdn $3.75 per share for gross proceeds of Cdn $110,250,000.

The placement of the common shares will be underwritten and led by GMP Securities L.P. and includes Canaccord Adams Limited. Net proceeds of the private placement will be used to fund the recently announced acquisition of heavy oil assets from PetroHunter Energy Corporation and the Company's ongoing development programs as well as for general working capital purposes. The private placement is subject to all requisite regulatory approvals. The common shares issued pursuant to the private placement will be subject to a 4-month hold period.

Pearl Exploration and Production Ltd. is a public company focused on delivering disciplined growth by establishing a North American portfolio of heavy oil projects with an emphasis on large resource opportunities.