North Peace Receives ERCB Approval for CSS Pilot and Announces Private Placement Financing

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North Peace Energy Corp. ("North Peace" or the "Company") (TSX VENTURE:NPE)
today received approval for a thermal bitumen recovery scheme under the Oil
Sands Conservation Act from the Energy Resources Conservation Board ("ERCB") for
its two well, Cyclic Steam Stimulation ("CSS") pilot on Block B South of its Red
Earth property.


The principal objective of the CSS pilot is to demonstrate the feasibility of
producing economic quantities of bitumen from the Company's resource and to
validate economic and technical parameters for the design of the commercial
project. Detailed engineering for the pilot is nearing completion and
procurement of major equipment is underway. Drilling of the two horizontal wells
and construction of pilot facilities will commence within the next two months,
with first steam injection expected to occur in November 2008. Initial
production response should occur approximately two months following steam
injection and is expected either late in 2008 or in early 2009.


North Peace has entered into an agreement to sell, on a private placement basis,
up to approximately $25 million of common shares at a price to be determined in
the context of the market. The commercially reasonable "best efforts" private
placement, which is subject to regulatory approval, will be sold through a
syndicate of agents led by GMP Securities L.P.


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
environment and engineering baseline work for the commercial project and (iii)
for general corporate purposes.


Forward-Looking Statements: Certain statements contained in this news release
constitute forward-looking statements that involve known and unknown risks,
uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward-looking statements. No
assurance can be given that these expectations will prove to be correct and such
forward-looking statements included in this release should not be unduly relied
upon. Actual results could differ materially as a result of changes in North
Peace's plans, changes in commodity prices, regulatory changes, general
economic, market and business conditions as well as production, development and
operating performance and other risks associated with oil and gas operations
including anticipated success of resource prospects and the expected
characteristics of resource prospects; anticipated capital requirements, project
rates of return and estimated project life; estimates of original discovered
resource; estimates of recovery factors; lack of diversification; and overall
technical and economic feasibility of the Company's project. These statements
speak only as of the date of this release or as of the date specified in the
documents accompanying this release, as the case may be. The Company undertakes
no obligation to publicly update or revise any forward-looking statements except
as expressly required by applicable securities laws.


About North Peace

North Peace Energy 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.