DANOIL/MANCHESTER REVERSE TAKE-OVER COMPLETED.

Ltd. and Manchester Resources Corporation announced today that the reverse take-over of Manchester by Danoil was successfully completed.

The transaction involved the exchange of Manchester shares for Danoil shares on the following basis:

-- For each Danoil Class A (subordinate voting) share, 37.4039 Manchester Class A (subordinate voting) shares

-- For each Danoil Class B share, 37.4039 Manchester Class B shares

-- For each Danoil Series G1 Preferred share, 6.234 Manchester Series D1 Preferred shares.

The completion of this transaction resulted in the board of directors of Danoil taking over as the new board of Manchester. The new board of Directors for Manchester Resources Corporation is: Robert G. Brawn, Frank W. King, Robert R. Hobbs, Reginal F. Whyte and Gregory C. Collver.

Mr. Robert G. Brawn assumed the role of President of Manchester and the company changed its principal business office to the offices of Danoil at 500, 505-3rd Street S.W., Calgary, Alberta, T2P 3E6.

It is anticipated that trading in the shares of Manchester will resume on Tuesday August 15, 1995. Also, subject to approval of the Alberta Stock Exchange, Manchester will proceed with the roll back of the Manchester shares, and that Danoil will amalgamate with Manchester on August 31, 1995.

CONTACT: Danoil

R. G. (Bob) Brawn [phone] (Business)

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