Canadian Shells

[Tackler]

BRH Baradero Resources summarizes corporate position

2004-10-12 12:54 ET - News Release

Mr. Nick DeMare reports

Baradero Resources Ltd. has provided the following corporate update.

Fiscal 2004 marked a year of corporate rationalization and restructuring. With the unsuccessful results in 2003 with respect to the company's regional California exploration programs, the company was left with a minor interest in one producing well in Texas, known as the West Ranch Field prospect. While this interest provided a small amount of operating cash flow, it did not support the company's operations in the United States. A decision was made to sell the West Ranch Field to a private arm's-length party. Effective May 31, 2004, the company determined that it could not continue financing its U.S. subsidiary company, California Exploration Inc., and abandoned its investment.

Throughout fiscal 2004, the company reviewed a number of opportunities that were presented to management. However, any successful negotiation was predicated upon the company's ability to attract new equity financing. The ability to complete future financings and attract opportunities required a critical assessment of the company's capital structure. It became apparent that a capital restructuring was necessary. Accordingly, on June 3, 2004, after receipt of all necessary shareholder and regulatory approvals, the company completed a consolidation of its share capital on a one-new-for-four-old basis. As required, the company also changed its name to Baradero Resources Ltd.

With the recently completed share consolidation, the company is now well positioned to move forward and is currently reviewing a number of opportunities in the resource sector.