Bow Valley Forest Products Limited Announces Major Transaction.

CALGARY, Alberta--(BUSINESS WIRE)--March 3, 1998--Bow Valley Forest Products Limited (Alberta Stock Exchange:BOV.) (the "Corporation")(ASE:"BOV") hereby announces that it was unable to reach a formal agreement with respect to the previous offer it extended to acquire all of the securities of Western Pine Shake and Lumber Mill Inc.

The Corporation originally intended for this acquisition to constitute its major transaction pursuant to Rule 46-501 of the Alberta Securities Commission and Circular No. 7 of The Alberta Stock Exchange.

The Corporation is pleased to announce that it has subsequently agreed to purchase all of the issued and outstanding securities of Flowing Energy Inc. ("FEI") of Calgary, Alberta, a private oil and gas company (the "Acquisition"). The Acquisition is an arms-length transaction.

Subject to the approval of the Alberta Stock Exchange and the shareholders of the Corporation, the Corporation intends to issue 1,500,000 common shares in the capital of the Corporation and pay $150,000 in cash as consideration for all of the issued and outstanding securities of FEI.

Pursuant to the letter of intent, the Acquisition will not be completed unless, on or before March 10, 1998, FEI produces a reserve report prepared by an independent engineering firm which shows that FEI has a minimum of either: -0-

  a.  Proved Producing Reserves with a present value of $500,000 based
      upon constant dollar pricing assumptions, discounted at 15
      percent; or

  b.  Proved and Probable Reserves with a present value of $500,000
      based upon constant dollar pricing assumptions discounted at 15
      percent, and Probable Reserves discounted at 50 percent; with
      Proven Reserves accounting for at least $250,000 of the said
      $500,000 value.

In conjunction with the Acquisition, the Corporation will propose the addition of Alan Jack to its Board of Directors to join Michael Binnion and Russell Hammond, who will continue their roles with the Corporation. Mr. Jack brings to the company thirteen years of oil industry experience in varying capacities of exploration, operations and asset acquisition. He currently serves as President and Chief Executive Officer of Scarlet Exploration Inc. which trades on The Alberta Stock Exchange.

In addition, as a condition to the completion of the Acquisition, the Corporation intends to complete a private placement of 750,000 common shares at a price of $0.25 per common share.

The Corporation is a Junior Capital Pool Corporation and the Acquisition is intended to constitute the Corporation's Major Transaction pursuant to Rule 46-501 of the Alberta Securities Commission and Circular No. 7 of The Alberta Stock Exchange. -0-

The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.

CONTACT: Bow Valley Forest Products Limited

Michael Binnion, 403/777-1571

403/777-1578 (FAX)