Pearl Exploration and Production Ltd. (" Pearl " or the "Company") is a publicly held Canadian oil and gas company listed on the TSX Venture Exchange under the symbol "PXX" and on the First North, (OMX Nordic Exchange) under the symbol "PXXS". The Company's focus is North American oil and gas interests, in particular, Alberta, Saskatchewan, Texas and California .

The Company is committed to its principal strategy of building shareholder value through the acquisition of large scale heavy oil resources and converting them into reserves. The Company believes that heavy oil will occupy a much greater position in the world energy market in the future and plans to position itself to take advantage of this eventuality. As a result, in the near term Pearl intends to focus the majority of its efforts on its core properties in both Canada and the United States with less emphasis on continued production growth and a greater emphasis on advancing steam pilot projects designed to convert its captured large scale resources into proven and probable reserves.

The Company has set a 2008 capital budget of $61 million. The Company's intention is to focus a significant portion of this budget on resource conversion activities, including the continued work on the steam pilots in San Miguel, Texas, Onion Lake, Saskatchewan and the Blackrod project in the Athabasca region of Alberta. The Company will also be initiating studies to examine options for upgrading and/or refining technologies on its core properties to increase per barrel netback economics. In addition, in order to dedicate more capital and intellectual resources to core properties, the Company has determined that it will market for sale certain non-core assets situated in Saskatchewan and Southern Alberta. The Company also intends to pursue various options designed to increase per barrel profitability including various types of unconventional upgrading and low technology refining applications.

The Company also intends to pursue various options designed to increase per barrel profitability including various types of unconventional upgrading and low technology refining applications