WYN DEVELOPMENTS REVIEWS PROPHET RIVER MISSISSIPPIAN SHUNDA FORMATION RESERVE ESTIMATES
Vancouver, British Columbia, Canada - May 14, 2008 - Wyn Developments Inc ("Wyn" or the "Company") reports that after an Alberta Securities Commission (ASC) review of the Company's National Instrument 51-101 compliant Economic Evaluation of Certain Natural Gas Reserves and Prospective Land Holdings (dated January 31, 2007 and prepared by Reliance Engineering Group Ltd.), the ASC has informed the Company that in their interpretation, the drainage area applied to the Mississippian Shunda zone of the Prophet River d-60-E/94-G-15 well is overstated in the report and could be misleading to the investing public. Consequently, the Company advises the January 31, 2007 report (published September 18, 2007) may require adjustment and should not be relied upon at this time.
The ASC is concerned with the extent of the drainage area used in the volumetric determination of reserves for this single well Shunda Formation pool. The ASC utilizes the Alberta Energy and Utilities Board (EUB) Alberta Single-Well Gas Pool Drainage Area Study, dated December 2004 as a guide for such determinations. This EUB report indicates an approximate 32 hectare average drainage area for Mississippian Shunda Formation natural gas pools in the Province of Alberta.
In comparison, the Operator, the British Columbia Oil and Gas Commission (BCOGC) and Reliance Engineering Group Ltd. ("Reliance") assigned a 270 hectare drainage area to the Company's Shunda Formation discovery. In spite of the limited un-stabilized natural gas flow tests of up to 7.93 million cubic feet per day (equivalent) only minor (4-6%) porosity was identified in the Formation. Upon review of all available well data, these parties accepted the Formation as fractured, justifying a broader drainage area.
The Company has submitted all available technical data and correspondence to the ASC to justify the original estimates, however, the ASC remains concerned with the interpretation. The Company is pursuing additional technical data to confirm the original estimates, however, in the absence of said data which may not be readily available, the Company will adjust the d-60-E Shunda Formation estimates in the Company's upcoming National Instrument 51-101 compliant Economic Evaluation of Certain Natural Gas Reserves and Prospective Land Holdings (dated January 31, 2008) per the guidance of the ASC and the December 2004 EUB report. As of this writing, the ASC has not communicated any concerns with the Company's reserve estimates for the Triassic Halfway Formation identified in the Prophet River, Bougie Trutch, and Trutch East projects.
This release has been reviewed by Anant Shah P.Eng of Reliance Engineering Group Ltd. and Thom Bainbridge P.Geol, both independent consultants and both qualified persons under NI 51-101.
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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