Carmanah completes Natuna Block sale

CALGARY, ALBERTA--Carmanah Resources Ltd. (``CKM'' - TSE``) has completed the sale of its subsidiary company, GFB Resources (Natuna) Limited (''Natuna``) that holds a 90% working interest in the N.E Natuna Production Sharing Contract (''PSC``), offshore Indonesia. This block comprises exploration acreage on which Carmanah participated in drilling one unsuccessful well in 1998. As consideration for the sale, Carmanah receives cash of approximately US $400,000 over twelve months and a 5% participating interest in the PSC. Carmanah will be carried for all costs incurred on the PSC up to and including the drilling of the first well through completion, suspension or abandonment, if a well is drilled. This sale continues Carmanah's efforts to satisfy its lenders and the cash proceeds will be used to repay bank debt. In addition, the sale of Natuna will eliminate trade and tax liabilities of approximately $1 million from Carmanah's consolidated balance sheet.

The transaction for the sale of GFB Resources (Java) Limited, which Carmanah announced on May 25, 2000, has now been released from escrow and ownership of the company has been transferred. Carmanah has now completed the sale of all its Indonesian subsidiaries.

Carmanah is a Calgary based international oil and gas company with a non-operated interest in the Onado oil field in Venezuela and two residual non-operated interests in Indonesia. Carmanah is proceeding with its plan to dispose of assets in order to pay down bank debt. (*)

Contact: Carmanah Resources Ltd. Mr. Trevor Penford President (403) 266-4975 (403) 266-5042 E-mail: carmanah@cadvision.com