Sharpe to Pursue Oil & Gas Development Project in Russia.

RICHMOND, Va.--(BUSINESS WIRE)--June 11, 1997--(ME SHO., OTC Bulletin Board SHGPF.) Sharpe Resources Corporation is pleased to announce that it has signed an agreement to acquire up to a 100 percent interest in Olympic Resources Inc., a private Barbados corporation, subject to regulatory approval. Olympic has signed a Letter of Intent with a Russian-American joint stock company to develop a large oil reserve in the Timan-Pechora Basin of the Komi Republic, Russia. Olympic/Sharpe have the right to earn a 50 percent interest in the project by achieving sustained production levels of 15,000 BOPD.

The development project consists of a 1,939 sq. km, or roughly 500,000 acre block where prospective reservoirs occur within no less than 20 structures. Approximately 20 exploration wells have been completed where Russian operators have encountered oil and gas producing formations ranging in depth from 2,500 - 3,600 meters within the block. U.S. based reservoir engineering on only three structures (3 wells) located near the western portion of the block indicates 180 million barrels of oil in place, to include 150 million proved, and approximately 30 million probable and possible reserves.

Of the three exploration wells previously completed, the best natural flow rate was 1,200 BOPD from a 9mm choke. The first of three recompletions are expected to be from the western portion of the development block. Production is expected to be 3,000-5,000 BOPD from these wells upon recompletion.

Plans include completing a 7-8 km pipeline to the main trunk line which crosses the northwest portion of the property and to secure electric power for high volume artificial lift to maintain production levels. Development of these fields will follow with a target production rate of 15,000 BOPD from the western portion of the property in 1998.

The project represents a long term development project that is expected to produce several development projects capable of producing 15,000 BOPD each, (per development) from several fields within the development block. Development will proceed based upon the results of the first development program.

Major oil companies that are in production in the area include, Conoco, British Gas, Elf Aquitaine and Total. Amoco, Exxon, Norsk Hydro, Texaco and Occidental also have blocks (fields) under control, which are not currently in production.

Olympic will have net working capital of approximately $6 million at the time of the acquisition, and its principals have undertaken to assist in raising approximately 50 percent of the financing required to develop the property. Olympic/Sharpe will recover 100 percent of the investment capital out of future production.

Under the agreement, Sharpe will issue common shares and warrants pursuant to the terms of a purchase agreement which will be negotiated. Additional shares will be issued to the principles of Olympic as production targets are attained on terms to be negotiated. Upon acquiring interests in Olympic, Sharpe will secure and finance its proportionate share required to maintain its position and develop the property. Olympic/Sharpe will be the operator of the project.

This transaction will involve no share consolidation of Sharpe which may involve the election of one (1) or more new directors to Sharpe's board.

Currently, Sharpe has approximately 20 million shares issued and outstanding.

CONTACT: Sharpe Resources Corporation

Roland M. Larsen, 804/ 225-0186

http://www.sharpe-resources.com