Drilling Continues At Third McCully Well

Halifax, Nova Scotia, June 12, 2001: Corridor Resources Inc. (CDH - CDNX) announced today that drilling operations at the McCully #3 well are continuing after encountering natural gas and experiencing drilling difficulties in the upper Albert formation. The well encountered sloughing shales near the top of the Albert formation that stuck the drill-string after having reached a depth of 2480 metres. The well has not yet reached the deeper Albert sands which are the main gas productive sands in the initial two McCully wells. Increasing gas shows were encountered below 2400 metres as drilling proceeded, and logs run to a depth of 2110 metres confirmed the presence of 5 metres of natural gas pay at a depth of 2050 metres in a section of hole drilled with heavy drilling mud.

The stuck drill-string has been recovered and the hole is being reamed to 2480 metres before logging and running a casing liner from that depth back up to the shoe of the 7 inch casing at a depth of 1830 metres. The remainder of the well will then be drilled with air to the planned total depth of approximately 2700 metres. Following completion of the McCully #3 well, the Ralex #4 drilling rig will be moved to a fourth well, with the location to be determined once the results of the McCully #3 well are known. Potash Corporation of Saskatchewan Inc. (PCS) is Corridor's 50% partner in the McCully 4-section joint venture area, with Corridor acting as Operator.

Analysis of the test results from the McCully #2 well indicate it is capable of producing approximately 8 billion cubic feet (bcf) of natural gas over a 20 year period, and more than 10 bcf over its economic life. A planned work-over of the McCully #1 well has been deferred to the third week of June, when the production test separator becomes available. There are 16 potential drilling locations within the 4-section Corridor/PCS joint venture area, with Corridor retaining a 100% working interest in lands to the west, north and east of this block, and 50/50 interests with PCS in lands to the south of the block.

Corridor is a junior oil and gas exploration company, headquartered in Halifax, Nova Scotia, with interests onshore in New Brunswick, Prince Edward Island and Quebec and offshore in the Gulf of St. Lawrence.

The Potash Corporation of Saskatchewan Inc. is a publicly traded company on the Toronto and New York stock exchanges.

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.