Canadian Spirit Resources Inc. Announces Montney Operational Update

CALGARY, ALBERTA--(Marketwire - Oct. 17, 2011) - Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX VENTURE:SPI) (OTCBB:CSPUF) is pleased to announce that its horizontal Montney well, c-B18-I/94-B-1, ("c-B18") was recently placed on production at a flow rate of approximately 5 million cubic feet per day (mmcf/d).

The c-B18 well exhibited strong flow characteristics during the two week test period prior to being placed on production and the performance appears to be consistent with other typical middle Montney wells completed in the immediate Farrell Creek area. Together with three Montney wells brought on-stream in January 2011 and a fourth in September 2011, the Farrell Creek gas facility is approaching its capacity. The addition of the c-B18 well is expected to double the Corporation's net share of production in the fourth quarter of 2011.

Canbriam Energy BC Partnership ("Canbriam"), operator of the Farrell Creek Montney joint venture, has drilled and cased (see News release dated August 8, 2011) a vertical Montney well (12-7-83-24W6) within the eastern lands of Farrell Creek ("east block"). This well is designed to evaluate the quantity of natural gas liquids on the east block and will be fracture stimulated in several Montney intervals (upper, middle and lower) prior to the end of 2011. Nearby operators are reporting liquids content of up to 30 barrels per mmcf in the Montney Formation. In addition to the joint Montney lands on the east block, CSRI holds a 100% interest in 12 immediately adjacent sections.

Immediately north of CSRI's lands, the Talisman/Sasol joint venture is engaged in the largest and most advanced development of the Montney/Doig shale formations in British Columbia.

The joint venture expects the recently approved ten thousand cubic meter per day water pipeline project (see News Release dated August 31, 2011) to be completed prior to the end of the fourth quarter. Under a full development scenario, it is expected that water sourcing and transportation costs will be reduced by 90%, and as a result, completion costs may be reduced by approximately 10% per well. This unique project, providing a long term secure source of water, is expected to provide CSRI with a strategic cost advantage during the development of the Farrell Creek Montney project and provide significant safety and environmental benefits for the surrounding communities.

CSRI is a natural resources company focusing on the identification and development of opportunities in the unconventional gas sector of the energy industry.

On behalf of the Board of Directors,

CANADIAN SPIRIT RESOURCES INC.

Don Gardner, Chief Executive Officer & Secretary

The corporate information contained in this news release may contain forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by CSRI at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently there is no representation by CSRI that actual results achieved during the forecast period will be the same in whole or in part as those forecast.