News

Otish Basin Property Acquired

Mr. Arthur Gordon-Tydd reports

Xemplar Energy Corp. (the "Company") wishes to announce that the property acquisition announced on September 28, 2005 has closed and the Company has issued 3,000,000 shares at a deemed price of $0.20. In respect of any shares issued or issuable pursuant to the foregoing securities, a hold period with an expiry date of June 7, 2006 applies.

The newly acquired Otish Basin Property (the "Property") is located in Central Quebec, 310 km northeast of the City of Chibougamau. The property consists of 1159 claims in three contiguous blocks, encompassed approximately 147,663 acres.

The property is within the Otish Basin, a late proterzoic sedimentary sequence that unconformably overlies the Archean Craton in the Superior Province of the Canadian Shield. Block 1 of the property is situated on the western rim of the Basin and locally sandstones of the basin form a shallow cover over an Archean metavolcanic belt. Blocks 2 and 3 not only cover thicker sequences of sediments in the central portion of the Basin but also a portion of the north-eastern rim of the Basin with thinner sequences.

The Otish region has a rich history of Uranium exploration starting in the late sixties and lasting until 1985. Past exploration for uranium in the Otish basin, because of its many similarities with the uranium rich Athabasca Basin in Saskatchewan, focused on finding unconformity associated uranium deposits. This exploration, because of the limited capabilities for depth penetration of geophysical instruments at the time, effectively covered only the very edges of the Otish Basin. An intense exploration effort was also done in the central portion of the Otish basin by a joint venture of Cogema/Soquem. The Joint venture partners targeted diabase/fault related epigenetic uranium mineralization. The overall result was the discovery and testing of many uranium showings in the Otish Basin sediments. The principal result was the discovery by Cogema/Soquem of the L-zone. Cogema calculated that that the L-zone contains 2,027 tonnes of Uranium within 385,000 tonnes (cut-off of 0.1% U) grading 0.595% U, 0.5 g/t Au. Note that these numbers are historic in-house calculations that have not been verified by the author, do not conform to the present requirements of NI 43-101 regarding resource and reserve definition and cannot be considered resources or reserves in any way.

The Property hosts several uranium prospects which were delineated by Cogema in the 1970-1980s. The best results were in mineralized float, grading as high as 4% U. These samples were collected in 1982 by prospectors following up on a uranium lake sediment anomaly.

The Property surrounds the Cogema-Soquem L prospect for which assessment files at the ministry report 1,843 tonnes of metal uranium calculated from radiometric data, not from chemical analysis. The mineralization appears to be both disseminated and in veins, occurring along the contact between the Otish gabbro and sandstone, siliciclastic sediments, and arkosic siltstone. Mike Magrum, PEng, a qualified person under NI 43-101, has approved the technical content of this news release.

The Company has started a data compilation of all previous exploration work. This project will be used to prioritize existing drill targets and to generate new drill targets. "This is an exciting opportunity to use modern exploration methods to search for Athabasca-type unconformity uranium deposits in a classic setting, where we know the uranium concentrating process works." says Mike Magrum, also a director of the Company.

XEMPLAR ENERGY CORP.

Arthur G. Gordon-Tydd, President

THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS HEREIN.

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