Dauphine Well Results Announced - Anticosti Island

Halifax, Nova Scotia, August 25, 1999: Corridor Resources Inc. (CDH - ASE) announced today that Shell Canada Limited, as Operator, and its partner Encal Energy Ltd. (ENL-TSE, ECA-NYSE) have completed drilling and evaluation of the Dauphine #1 well located in the eastern portion of Anticosti Island. No significant hydrocarbons were encountered, and the well is now being abandoned.

Dauphine is the third of three wells drilled this summer by Shell as part of a farmin program on Corridor's licences. The wells have provided key information regarding the geological factors controlling the presence of reservoir development and hydrocarbon distribution on this large, relatively unexplored island. During the next few months this new data will be integrated with other geological information in developing plans for the next stage of petroleum exploration on Anticosti Island.

Shell and Encal have each earned a 50% working interest in Corridor's Anticosti licences and will each retain 50% participation rights in future exploration on the island, subject to a minimum 10% gross overriding royalty (GORR) payable to Corridor on production from licences covering an area of approximately 1 million hectares. Once 5 million barrels of oil equivalent have been produced and removed from the island, Corridor's 10% GORR automatically converts to a minimum 30% working interest in the licences, at no cost to Corridor.

Corridor is a junior oil and gas exploration company, headquartered in Halifax, Nova Scotia, holding more than 5 million acres of petroleum exploration licences in Quebec and Atlantic Canada.

This press release contains certain forward looking statements relating to, but not limited to, Corridor's operations, anticipated financial performance, business prospects and strategies, including expectations relating to production levels; capital expenditure programs; the quantity of natural gas reserves; projections of market prices; projections of costs; supply and demand for natural gas; expectations regarding the ability to raise capital and to continually add to reserves through exploration and development; and treatment under governmental regulatory regimes. These statements are based on current expectations that involve numerous assumptions regarding factors and risks that could cause actual results to vary materially, including, without limitation to, the following factors: risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, markets and marketing, dependence on key personnel, dependence on Potash Corporation of Saskatchewan, Inc., availability of drilling equipment and access, risks may not be insurable, management of growth, expiration of licenses and leases, reserves estimates, seasonality, competition, conflicts of interest, Kyoto Protocol, issuance of debt, title to properties and hedging. There is no representation by Corridor that actual results achieved will be the same in whole or in part as those set out in the forward looking information. Furthermore, the forward looking statements contained in this press release are made as of the date hereof, and Corridor undertakes no obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise.