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PRESS RELEASE DEER LAKE OIL& GAS INC. ANNOUNCES PRIVATE STOCK OFFERING Deer Lake Oil & Gas Inc. (Deer Lake) plans to raise up to C$ 1,000,000 through the private placement of 2.5 million shares. Shares will be made available in Units at a price of C$ 1.20 per Unit. Each unit will consist of one Flow Through Class A Common Share and two Non-Flow Through Class A Common Shares. The proceeds will be used for general and administrative costs, working capital, project acquisition fees and conducting a major farmout marketing effort for Deer Lake’s properties. Over the last number of months, the outlook and pace of the North American oil and gas exploration sector has consistently improved with new sources of exploration capital becoming available. As a result, many companies are broadening their geographical area of interest. The management of Deer Lake is convinced that its holdings are strategically well placed to attract joint venture participation. Based on a successful private placement, the Company intends to expend approximately C$ 450,000 in 2007 on the wholly owned EP93-103 license. Deer Lake also intends to seek joint venture partners to invest in an expanded Western Adventure Development Plan on file with the Province. The Western Adventure delineation project represents a continuation of the Company’s success in drilling and testing the Western Adventure-2 delineation well which confirmed the presence of the Ordovician carbonate platform at depth in the Cormack Sub-basin. Gas shows from Carboniferous sands in the Western Adventure-2 were within the same interval encountered in the Western Adventure-1 where gas and condensate were tested on DST. The Company will also seek out joint venture partners for the adjacent, wholly owned EP03-104 and EP03-105 licenses. All three licenses are within a proven petroleum system with demonstrated source rocks, stacked reservoirs and traps. As part of the Company’s forward planning, an Option Agreement is in place to acquire a 25% working interest in EL1102 located offshore in the Bay St. George. The license covers 124,320 hectares and was issued January 15, 2007. Multiple play types have been identified within the license including karsted and fractured hydrothermal dolomites in fault bounded anticlines within the Ordovician carbonate platform, Carboniferous reefal buildups and Carboniferous sands and conglomerates in traps associated with elongated, salt related anticlines. This press release is made solely for informational purposes and under no circumstances is it to be construed as a public offering of securities. Deer Lake oil & Gas Inc. is an independent oil & gas explorer based in St. John’s, Newfoundland with exploration properties in western Newfoundland and strong focus on the onshore Deer Lake Basin where it holds 90,239 contiguous hectares (225,000 acres). Cabot Martin, President |