Hyperion Resources: Brokered Private Placement Arranged for Colorado Oil & Gas Permitting.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--May 25, 2000

Hyperion Resources Corp. (CDNX:HYP.)("Hyperion") is pleased to report that it has, subject to regulatory approval, arranged a brokered private placement of 1,136,364 units at $0.22 per unit to generate net proceeds of $250,000.

Each unit will be comprised of one common share of Hyperion and one half of a non-transferable two-year share purchase warrant entitling the purchase of one additional common share of Hyperion at a price of $0.22 per share during the first year and at a price of $0.26 during the second year. Canaccord Capital Corp. ("Canaccord") has agreed to act as Hyperion's agent with respect to this placement and will receive a commission of 10% of the gross proceeds raised under the brokered portion of the private placement and a broker's warrant entitling the purchase of up to 284,091 shares of Hyperion at a price of $0.22 per share during the first year and at a price of $0.26 during the second year. The proceeds from this private placement will be used to fund the costs associated with the permitting of Hyperion's Baca Ranch property in preparation for drilling.

The gas potential and oil potential of the Baca Ranch property consists of two Dakota Sandstone prospects mapped from seismic data. The two prospects, Crestone and Pole Creek, occur within the San Luis Basin at depths of 12,000 feet and 7,000 feet, respectively. The Crestone Prospect covers approximately 11,500 acres and contains a preserved section of Cretaceous Mancos Shale and Dakota Group Sandstones.

The Baca Ranch property is the subject of an independent evaluation by J.M. Parker of Lakewood, Colorado who states that "excellent prospects for the discovery of large accumulations of oil and gas are present in the San Luis Basin." Mr. Parker estimates that there is a 5% chance that the Dakota formation will produce one trillion cubic feet of flammable gas from the Crestone structure on the Baca Ranch property and that the potential exists for up to seven trillion cubic feet of gas to be produced from the Baca Ranch property if a basin-centered, closed hydrocarbon system exists in the whole area where Niobrara to Pennsylvanian source and reservoir rocks are present. Such a system exists in the nearby San Juan basin which to date has produced twenty-five trillion cubic feet of gas and one billion barrels of oil.

Mr. Parker goes on to recommend that Hyperion immediately begin the permitting to drill a 15,000 foot well to test the Crestone structure.

Hyperion is also pleased to report that it has assigned a portion of its rights under its agreement of February 28, 2000 with Lexam Explorations Inc. ("Lexam") whereby Lexam granted to Hyperion an option to acquire a 60% interest in the oil and gas rights which Lexam holds on the 100,000 acre Baca Grant Ranch located in the San Luis Basin in south-central Colorado. Hyperion has assigned to each of Adrian Resources (Colorado) Ltd. and IMC Ventures Inc. the right to acquire a 20% interest in its agreement with Lexam. Adrian and IMC have, in turn, agreed to be responsible for paying one third of the US$8,000,000 in exploration expenditures needed for Hyperion to acquire the 60% interest in the Baca Ranch property from Lexam. Thereafter, Hyperion, Adrian, IMC and Lexam will bear all costs of further exploration on a pro rata basis, failing which, the interest of the party not funding will be subject to dilution.

Hyperion is also presently discussing participation in the Baca Ranch property with a number of other large independent oil and gas companies to provide financial and operational assistance.

Hyperion is also pleased to report that Derek Bartlett has joined the Board of Directors of Hyperion.

On Behalf of the Board of Directors of HYPERION RESOURCES CORP.

Chet Idziszek, President

No stock exchange has approved or disapproved the information contained herein.