Flair Petroleum Corporation to Cancel 60 Million Shares and Reduce Total Outstanding Shares by Nearly 50%

Flair Petroleum Corporation reports that the Company’s Board of Directors has passed a unanimous resolution to cancel 60 million common shares previously issued to shareholders Flair Petroleum Ltd. (UK) and Credifinance, Inc., which were to have conveyed to the Company a joint venture covering heavy oil deposits in the Uinta Basin of the State of Utah, but failed to do so. The share cancellation will reduce nearly by half Flair’s total outstanding shares from approximately 121.3 million to 61.3 million.

This news release includes forward-looking statements that reflect Flair Petroleum Corporation’s current expectations about its future results, performance, prospects and opportunities. Flair Petroleum Corporation has tried to identify these forward-looking statements by using words and phrases such as “may”, “will”, “expects”, “anticipates”, “believes”, “intends”, “estimates”, “should”, “typical”, “we are confident” or similar expressions. These forward- looking statements are based on information currently available to Flair Petroleum Corporation and are subject to a number of risks, uncertainties and other factors that could cause the corporation’s actual results, performance, prospects of opportunities in the remainder of 2007 and beyond, to differ materially from those expressed in, or implied by, these forward-looking statements.

Contacts: Flair Petroleum Corporation Investor Relations

(403) 266-3186