North Peace Prices Offering

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION
OF U.S. SECURITIES LAW.


North Peace Energy Corp. (TSX VENTURE:NPE) ("North Peace" or the "Company") is
pleased to announce that it is proceeding with its private placement financing
announced June 5, 2008 on the following terms.


North Peace has engaged GMP Securities L.P. ("GMP") as lead agent of a syndicate
of agents which includes TD Securities Inc., Blackmont Capital Inc., Canaccord
Capital Corporation and Raymond James Ltd. to sell on private placement,
"commercially reasonable efforts" basis, units ("Units") of the Company and
flow-through common shares ("Flow-Through Shares") of the Company (the
"Offering"). The Aggregate gross proceeds of the Offering are expected to be up
to $25,000,000 and the Flow-Through Shares may consist of up to $5,000,000 of
the Offering.


Units will be issued at a price of $1.50 per Unit. Each Unit consists of one
common share and one half of one common share purchase warrant of the Company,
each whole common share purchase warrant entitles the holder to acquire one
common share of the Company at a price of $2.00 per share for a period of 18
months from the closing date of the private placement. In addition, North Peace
will issue Flow-Through Shares at a price of $1.65 per Flow-Through Share.


Completion of the Offering is subject to receipt of all applicable regulatory
approvals. The Offering is expected to close on or about August 7, 2008. The
securities issued pursuant to the Offering will be subject to a four-month hold
period from the date of closing.


The majority of the proceeds from the Offering will be used by the Company to
fully fund all costs associated with the CSS pilot project including the
acquisition of capital equipment, construction costs and the drilling of two
horizontal CSS wells. The remaining funds will be used to: (i) complete the
2008/2009 eight well winter delineation drilling program, (ii) to advance
engineering and environmental baseline work for the commercial CSS project, and
(iii) for general corporate purposes.


About North Peace

North Peace has an in situ oil sands project in northern Alberta with 86,400
acres of nearly contiguous leases bridging the Peace River and Athabasca oil
sands areas.


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy the securities in any jurisdiction. The securities offered have
not and will not be registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") or any state securities laws and may not
be offered or sold in the United States except in certain transactions exempt
from the registration requirements of the U.S. Securities Act and applicable
states securities laws.