Fennel Resources, Inc. - Cancellation of Basic Acquisition.

VANCOUVER, British Columbia -- Fennel Resources, Inc. (OTC:FNNR), on June 15, 2006, the Company announced that it had completed its acquisition of Basic Minerals and Land Ltd. ("Basic"). Basic is an Alberta corporation that is in the process of acquiring the rights to exploit oil and gas concessions on certain First Nations lands near Fort McMurray, Alberta. Under the terms of the Share Purchase Agreement, Fennel issued 3,650,000 shares in trust to acquire 100% of the issued and outstanding shares of Basic, to be held until the agreement with the First Nations was completed.

Due to non-performance by the Company in raising requisite financing for Basic, the Company and Basic have agreed not to complete the acquisition of Basic. The 3,650,000 shares issued have been cancelled. The Company has also received notice that Stan Ford has resigned as President and Director.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 

This press release contains statements that plan for or anticipate the future, called "forward-looking statements." In some cases, you can identify forward looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of those terms and other comparable terminology.

These forward-looking statements include statements about:

--our market opportunity;

--revenue generation;

--our strategies;

--competition;

--expected activities and expenditures as we pursue our business plan; and

--the adequacy of our available cash resources.

These statements appear in a number of places in this press release and include statements regarding our intent, belief or current expectations, those of our directors or officers with respect to, among other things: (i) trends affecting our financial condition or results of operations, (ii) our business and growth strategies, (iii) the Internet and Internet commerce and (iv) our financing plans. Although we believe that the expectations reflected in the forward-looking statement are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including but not limited to those discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2004. Although the Company believes the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion herein should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.