Canadian Leader Announces Exploration Updates.

CALGARY, Alberta--(BUSINESS WIRE)--May 8, 1996--CANADIAN LEADER ENERGY (TSE: LOL) -- Canadian Leader Energy Inc. ("Canadian Leader") announces an update on the activities of its wholly owned subsidiary Duraham Petroleum Corporation ("Duraham") in Tunisia, North Africa and the activities of Canadian Leader in Western Canada.

TUNISIA, NORTH AFRICA

Duraham's previously announced horizontal re-entry well drilled in the Belli oil field is currently being tested. To date, the well has encountered good fractures in the Bou Dabubous formation but only minor amounts of oil were recovered along with drilling fluid and formation water. Upon recovery of all of the drilling fluid, the oil cut increased from 0.5 percent to 2.0 percent which currently represents approximately 140 BOPD.

Testing of the well will continue to further evaluate the potential of the horizontal well. By virtue of drilling this well, Duraham has earned an interest in the Belli Field which includes production facilities with an estimated value attributable to Duraham's interest of $1.4 Million (U.S.).

Duraham has the right to participate for a 50 percent interest in the El Gharsa exploration permit filed for by Eagle Holdings (Barbados) Ltd., located in west central Tunisia. The permit covers in excess of 1,000,000 acres of undrilled exploration lands. In addition, Duraham is currently reviewing opportunities to participate in permits covering in excess of 3 million gross acres located in central Tunisia.

As previously announced, subsequent to the January 1, 1996 effective date of the acquisition of the shares of MP Tunisia and MP Zarzis by Duraham which acquired an interest in the Ezzaouia oil field, a successful well (the "Ezzaouia #11 Well") was drilled and is currently producing 2,100 barrels of oil per day. Duraham holds a 12.5 percent working interest in the Ezzaouia Mining Concession which covers approximately 9,800 acres on-shore in eastern Tunisia.

With the addition of the Ezzaouia #11 well, total production from the Ezzaouia field is approximately 6,000 barrels of oil per day from a total of seven wells completed in Cretaceous and Jurassic formations. The current net production attributable to Duraham is approximately 800 BOPD which includes production from Ezzaouia and Duraham's 32 percent interest in the nearby Robanna field. An additional well is scheduled to be drilled later this year on the same fault block as the Ezzaouia #11 Well.

During the fourth quarter of 1996, Duraham plans to participate in the re-completion of the El Biban #3 Well, an off-shore well that previously tested in excess of 4,000 BOPD. Oil production from this well would be tied to the existing facilities located on the Ezzaouia Mining Concession. Duraham holds a 29 percent working interest in the El Biban Mining Concession which covers an area of approximately 56,000 acres off-shore Eastern Tunisia.

The shares of MP Tunisia and MP Zarzis, owned 40 percent by Duraham were acquired at a cost of $6.2 Million (Cdn). An independent engineering evaluation has assigned proven reserves of approximately 2.44 million barrels of oil equivalent and proven plus risked probable reserves totalling approximately 3 million barrels of oil equivalent.

This equates to a reserve acquisition cost of $2.56 (Cdn) per barrel of oil equivalent on a proven basis and $2.08 (Cdn) per barrel of oil equivalent on a proven plus risked probable basis.

WESTERN CANADA

In the Prairiedale area located in Southwestern Saskatchewan, Canadian Leader has drilled a total of eleven wells of which nine have been successful. 3-D Seismic is being conducted on these discoveries and a multi well development drilling program will be conducted on Canadian Leader interest lands throughout 1996.

Canadian Leader's current daily production rate is approximately 1,400 barrels of oil equivalent from Western Canada and approximately 800 barrels of oil equivalent from Tunisia, North Africa for a combined total of approximately 2,200 barrels of oil equivalent per day. Additional daily production is expected to commence upon completion of the recent Prairiedale discoveries.

Canadian Leader is a public company with shares trading on the Toronto Stock Exchange under the trading symbol "LOL".

CONTACT: Canadian Leader Energy Inc.

Jeffrey L. Standen, 403/264-1095, 403/264-6111 (FAX)

Barry W. Swan, 403/264-1095, 403/264-6111 (FAX)