WYN DEVELOPMENTS COMPLETES THE PROPHET RIVER d-60-E/94-G-15 EXPLORATORY WELL
Vancouver, British Columbia, Canada - January 26, 2007 - Wyn Developments Inc. ("Wyn Developments" or the "Company") announces the Prophet River d-60-E/94-G-15 exploratory well has been successfully completed.
After perforating and coiled acid wash, the Mississippian reservoir yielded an initial unstabilized gas flow of up to 7.943 MMcf.d. Pressure recorders are currently in the wellbore to determine pressure buildup while the well is shut in and provide insight into the scale of this new Mississippian discovery. The pressures and gas returns, coupled with known seismic and geological data suggests likely communication between d-60-E and the d-19-E Dome well (flow tested 9 MMcf.d.) five kilometers to the southeast as well as the Unocal-Suncor d-65-L (flow tested 10.779 MMcf.d.) approximately 24 kilometers to the South of d-60-E. The seismic data also suggests this gas charged reservoir extends to the northwest.
In addition, excellent gas detection also occurred in the Triassic Halfway Formation as the well encountered 23 meters of prospective pay. The gas shows, log analysis, and seismic data suggest this Triassic Halfway Formation extends northwest and southeast toward the c-97-D Amoco well (3 MMcf.d), approximately seven kilometers from the d-60-E well.
This well control with seismic interpretation suggests the Company could drill an additional four Mississippian and four Triassic Halfway development wells on the 11 square mile Prophet River 'A' lands, in which Wyn has earned its 21 2/3% interest.
The Company also has an option to drill a well on the Prophet River 'B' lands by committing 33 1/3% of the costs to earn a 21 2/3% interest in 10 square miles of land to the total depth drilled. The 'B' lands drilling decision deadline has been extended until March 30th, 2007, with the spudding deadline extended until March 30th, 2008. Well control with seismic interpretation suggests the Company could drill an additional three Mississippian and three Triassic development wells on the 10 square mile Prophet River 'B' lands.
This equates to a potential of seven additional Mississippian and seven additional Triassic Halfway development wells across the 21 square mile Prophet River lands.
The Company has concluded this Mississippian and Triassic Formation development is the appropriate direction for the Prophet River lands which includes the potential to dual produce from these zones. The Company intends to apply for several Mississippian drilling permits and commence a Prophet River development program this summer. With success, production infrastructure could be in place on the Prophet River lands in early 2008.
Thomas W. Bainbridge P.Geol., is the qualified consultant for the Company's natural gas projects and has reviewed and verified the contents of this news release.
About Canada Rare Earths
Canada Rare Earths is a growth company focused on the exploration and development of rare earth elements at its 100% owned Goeland Rare Earths Project within the Montviel carbonatite complex, Montviel Township Quebec, immediately adjacent to Geomega's (TSX-V: GMA) recent rare earth discovery. The Goeland property located 215 km north of Val-d'Or, is road accessible and consists of 47 claims totaling approximately 2,600 hectares. Since the acquisition of the Goeland Project, the Company, in a short period of time, has successfully established itself in one of the largest Carbonatite complexes in North America. Worldwide, carbonatite-related deposits are a major host for rare earths elements ("REE"). The world's most advanced and prolific REE deposits in production or development, Bayan Obo (China), Molycorp's Mountain Pass (USA), Lynas's Mount Weld (Aus), and Rare Earth Element Resource's Bear Lodge project, are all hosted by carbonatites.
For more information on Canada Rare Earths, please contact our Head Office.
On Behalf of the Board of Canada Rare Earths Inc.
Chad McMillan
President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. All of the above is subject to TSX.V and regulatory acceptance.
FORWARD LOOKING STATEMENTS
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's Pre-Development Agreement and the exploration of the Goeland Project, constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals and any required financing to complete the Company's obligations pursuant to the Pre-Development Agreement and planned exploration activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to Canada Rare Earth's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, actual results of the Company's exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Canada Rare Earths does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
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