Baltic Resources and PhosCan Chemical Finalize Arrangement Agreement; Shareholder Meetings Scheduled for March 4, 2008

TORONTO, ONTARIO announced today that it has entered a definitive Arrangement Agreement with PhosCan Chemical Corp. providing for a Plan of Arrangement (the "Arrangement") to implement the merger originally announced on October 29, 2007 and has obtained an interim order from the Court of Queen's Bench of Alberta in respect of the Arrangement. Pursuant to the Arrangement, Baltic and PhosCan will combine their interest in the Martison Phosphate Project, in which they each currently hold an equal joint venture interest.

Pursuant to the Arrangement, Baltic will also transfer to its newly formed subsidiary, Canadian Orebodies Inc. ("Orebodies") all of Baltic's assets other than Baltic's interest in the Martison Phosphate Project and 90% of the proceeds of warrants and options exercised since October 29, 2007, and Orebodies will assume all of Baltic's liabilities, other than certain advances made by PhosCan on Baltic's behalf in respect of the Martison Phosphate Project. Baltic will then amalgamate with PhosCan's wholly-owned subsidiary, 1366825 Alberta Ltd. The TSXV has granted conditional approval of the listing of Orebodies shares on the TSXV. Final approval of the listing is subject to the completion of the Arrangement and all of the requirements of the TSXV.

Under the Arrangement, Baltic shareholders will receive in exchange for each common share of Baltic 1.4 common shares of PhosCan and one common share of Orebodies. Based on the currently outstanding shares, an aggregate of approximately 51,843,259 common shares of PhosCan will be issued in exchange for Baltic shares, such that former Baltic shareholders will hold approximately 37.2% of the then issued and outstanding common shares of PhosCan. Upon completion of the Arrangement, three representatives of Baltic, being Donald McKinnon, Chris Hodgson and Gordon McKinnon, will become directors of PhosCan.

Each of Baltic and PhosCan will hold shareholders' meetings on Tuesday, March 4, 2008 to consider the Arrangement and certain related matters. Completion of the Arrangement is conditional upon, among other things, the approval of a majority of votes cast by PhosCan shareholders and at least two-thirds of the votes cast by Baltic shareholders, as well as final court approval. The boards of directors of each of PhosCan and Baltic have approved the Arrangement and have unanimously recommended that shareholders vote in favour of approval of the Arrangement.

Donald McKinnon, President and CEO of Baltic, commented "We believe the merger between Baltic and PhosCan to consolidate interests in the Martison Project is an instrumental step that will accelerate the project and provide excellent value for our shareholders. Also, it will allow Canadian Orebodies to focus on its non phosphate projects and we look forward to an exciting year with the new company".

About Baltic and PhosCan

Baltic and PhosCan are engaged through a joint venture agreement in the advancement of the Martison Phosphate Project located near Hearst, Ontario. The Martison Project entails the development of a phosphoric acid plant, utilizing the Martison phosphate deposit and sulphuric acid from Ontario base-metal smelters. Phosphate concentrate and sulphuric acid are the two primary inputs in the production of phosphoric acid. The Martison Project is strategically positioned in proximity to target markets with access to excellent infrastructure including rail, power, labour and an abundant supply of sulphuric acid. The phosphoric acid produced will be used as feedstock for the production of higher valued products in the fertilizer and industrial markets that provide both an economic and logistical advantage.

Baltic Resources Inc., PhosCan Chemical Corp.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements with respect to the Arrangement, and matters concerning the business, operations, strategy, and financial performance of Baltic and PhosCan. These statements generally can be identified by use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue" or the negative thereof or similar variations. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the transaction contemplated herein is completed. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Unless otherwise stated, all forward looking statements speak only as of the date of this press release and Baltic does not undertake any obligation to update such statements except as required by law.

Contacts: Baltic Resources Inc. Donald McKinnon President & CEO [phone] Baltic Resources Inc. Gordon McKinnon Manager Corporate Development [phone] Website: www.balticresources.ca