Canadian Phoenix Increases Size of Private Placement Financing

Canadian Phoenix Resources, formerly Arapahoe Energy Corporation, has increased the size of its previously announced non-brokered private placement on February 4, 2008, by an additional $10,000,000 for total gross proceeds of up to $35,000,000.

Under the increased financing, Canadian Phoenix has agreed to issue up to 280,000,000 units of Canadian Phoenix at the price of $0.125 per Unit for gross proceeds of up to $35,000,0000. Each Unit will consist of one common share of Canadian Phoenix and one Common Share purchase warrant. Each Warrant will entitle the holder thereof to purchase one Common Share during the period expiring on the second anniversary of the completion of the Private Placement upon payment of the exercise price of $0.15 per Common Share. If the closing price of the Common Shares on the TSXV is at least $0.25 for a minimum of at least 30 trading days, Canadian Phoenix may reduce the exercise period to that date which is 30 days following the date on which the Warrant holders receive notice of the shortened exercise period.

The net proceeds of the Unit Private Placement will be used by Canadian Phoenix to complete the subscription transaction and the farm-in transaction announced on February 4, 2008, to develop its oil and natural gas projects, to conduct acquisitions and for general working capital purposes. It is anticipated that the Unit Private Placement will now be completed on or about March 13, 2008.