Peberco Receives $140MM Lump Sum Payment from Cuban Authorities

Pebercan's Cuban subsidiary, Peberco Limited, received the net lump sum payment of US $140 million from the Cuban Authorities in connection with the termination, by the Cuban Authorities, of the Production Sharing Contract and payment of amounts owed to Peberco Limited for the sale of crude oil.

Contrary to what had previously been announced, the resulting depreciation of assets will be recognized by the Company in its financial
statements for the year 2008.

The Board of Directors of the Company will convene as soon as possible in order to consider the Company's future prospects.

Pebercan is involved in the exploration, development and exploitation of oil reserves in the Republic of Cuba. Pebercan sells its entire production to the Cuban government but is not bound by any restrictions regarding the sale of its oil. The Company's shares are listed on the TSX and trade under the symbol PBC.