MACKAY RIVER/ SOUTHERN PACIFIC

Southern Pacific Resource Corp. announce the completion of an independent reserves evaluation for its STP-McKay project, Alberta, Canada. The 3P Exploitable Bitumen In Place recognized in the report in the STP-McKay project area represents a 50% increase over the previous year’s estimate. This increase was largely due to the results of this past winter’s successful 21-well delineation program in the project area. The reserves assigned in the Report generate a project life of 24 years in the 2P case and 37 years in the 3P case. The report has applied recovery factors averaging 36% for the 2P case and 41% for the 3P case. On May 29, 2009, Southern Pacific filed an application for a commercial steam assisted gravity drainage (“SAGD”) project on its McKay block.

Southern Pacific Resource Corp. has submitted an application today to the Alberta Energy Resources Conservation Board (ERCB) and Alberta Environment for the development of its first 12,000 barrel per day bitumen project, utilizing proven in-situ steam assisted gravity drainage (SAGD) technology. Submission of this application is believed to be the final step before contingent resources on the corporation’s STP-McKay project can be reclassified as Probable and Possible reserves. The project application is a complete and encompassing document that addresses all of the necessary and stringent requirements that must be met prior to approval of a commercial project of this size. The STP-McKay project is located approximately 45 km northwest of Fort McMurray, Alberta, Canada.

Southern Pacific Resources says it has now completed the fieldwork necessary to submit an application to the Alberta Energy Resources Conservation Board (ERCB) for a 12,000 barrel per day (bbl/d) in-situ steam-assisted gravity drainage (SAGD) project. The STP-McKay project is located on the Athabasca fairway 50 km northwest of Fort McMurray. The company intend to finalize the analysis and collation of the data, and prepare its application for the STP-McKay SAGD project. The application is on track to be submitted in the second quarter of 2009.