Arcan Resources Ltd. Announces Year End Results, Filing of Annual Information Form and Operations Update

Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan" or the "Company") announces
today the filing of its Annual Information Form ("AIF") for the year ended
December 31, 2008 and is pleased to provide an update on its operations. The AIF
contains the information and reports concerning Arcan's crude oil, natural gas
and natural gas liquids reserves in addition to other oil and gas information
required to be provided under National Instrument 51-101 - Standards of
Disclosure for Oil and Gas Activities. Arcan has also filed its annual financial
statements and management's discussion and analysis for the year ended December
31, 2008. These documents, including Arcan's AIF, can be retrieved
electronically from the SEDAR system under Arcan's profile at www.sedar.com.


Highlights:

- Net asset value of $3.77 per fully diluted share (proved plus probable before
tax discounted 10%) at December 31, 2008, including the impact of Alberta's new
royalty framework. This represents a 38% increase over the $2.73 (proved plus
probable before tax discounted 10%) per fully diluted share as at December 31,
2007. This value increase more than offsets the significant commodity price
declines and the impact of Alberta's new royalty framework.


- Proved plus probable ("P+P") reserves at December 31, 2008 are 9.8 million
boe, up 36% from 7.2 million boe at December 31, 2007. Arcan's P+P reserves have
an approximate 18 year reserve life index based on Q4, 2008 production rates and
are 76% proved and 82% light oil.


- Finding, development and acquisition ("FD&A") costs for the year ended
December 31, 2008 are estimated at $16.63/boe proven and $16.18/boe P+P
(including changes in future capital) as a result of waterflood, driving a
recycle ratio of 3.3 times based on average operating netback (revenue less
royalties and operating costs) for the year estimated at $53.98/boe.


- New exploration gas well discovered in Hamburg was placed on production on
April 1, 2009, at rates exceeding 1,000 (500 net) boe per day. This well is
expected to only pay a 5% royalty for its first 500 mmcf of production.


- Deer Mountain and Hamburg GG Pool waterflood implementation projects have been
successful in creating two high quality light sweet oil assets with low
production declines and long reserve life. Infrastructure is in place to develop
and exploit these assets. In Hamburg, the Corporation has up to 8 infill
locations in the Slave Point GG Pool which are expected to have Good Production
Practice ("GPP") status. In Deer Mountain, the Corporation has years of drilling
inventory built by its technical team.


- Bank line of $50 million confirmed to April 2010.



                                                                 Six Months
                                   Year Ended     Year Ended          Ended
                                  December 31,   December 31,   December 31,
Highlights                               2008           2007           2006
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Financial ($000's, except per
 share amounts)

Petroleum and natural gas revenues     48,657         27,505          6,304
Cash provided by operating
 activities                            23,969         11,429          2,348
Funds from operations (1)              24,553         10,927          2,689
  Per share - basic (1)                  0.65           0.33           0.11
Net income (loss)                       7,001           (910)          (318)
  Per share - basic                      0.19          (0.03)         (0.01)
            - diluted                    0.18          (0.03)         (0.01)
Bank loan                              29,633         13,906         11,502
Total assets                          149,724        123,285         82,019
Total liabilities                      61,493         43,815         33,888
Shareholders' equity                   88,231         79,471         48,130
Capital expenditures, net - cash       34,922         50,272         33,776
Common shares outstanding              37,869         36,492         26,534
  Weighted average - basic             37,543         32,724         25,295
  Weighted average - diluted (3)       38,525         32,724         25,295
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Sales Volumes
Crude oil and NGLs (bbls per day)       1,128            798            373
Natural gas (mcf per day)               2,220          2,278          1,377
                                       -------------------------------------
Barrels of oil equivalent
 (boe per day) (2)                      1,498          1,178            603
----------------------------------------------------------------------------

(1) The reader is referred to the section - "Special Note Regarding
    Non-GAAP Measures" in this press release.
(2) The reader is referred to the section - "BOE Presentation" in this
    press release.
(3) Basic and diluted weighted average shares are the same for 2007 and
    2006 as the Company incurred a loss in both of these periods.



Net Asset Value

As detailed in the table below, the net asset value ("NAV") of $3.77 per diluted
share at December 31, 2008 (on the basis of proved plus probable ("P+P")
reserves discounted at 10% including the impact of the New Royalty Framework for
Alberta ("NRF")) has increased by 38% over December 31, 2007. This calculation
is presented for December 31, 2008 and December 31, 2007 and incorporates
estimates that may not be comparable year-over-year and are only at one point in
time. In calculating net asset value, an independent evaluation was performed
for reserves, however, land values and seismic values are based on management's
estimates. The reader is cautioned that the presentation does not reflect all
aspects of the Company. Certain figures for 2007 have been adjusted to reflect
the estimate of the impact of the NRF by GLJ Petroleum Consultants Ltd. ("GLJ").
Estimates of net asset value do not represent fair market value.




----------------------------------------------------------------------------
Net Asset Value                   December 31, 2008       December 31, 2007
----------------------------------------------------------------------------
                                   (P+P        (P+P        (P+P        (P+P
($000s except number         discounted  discounted  discounted  discounted
 of shares and per share)         at 5%)     at 10%)      at 5%)     at 10%)
----------------------------------------------------------------------------
Present value of reserves       226,925     171,457     163,488     127,302
----------------------------------------------------------------------------
Undeveloped acreage
 (2007 - $290 per acre)          11,062      11,062       9,542       9,542
----------------------------------------------------------------------------
Seismic                             800         800       1,000       1,000
----------------------------------------------------------------------------
Working capital deficit         (40,406)    (40,406)    (30,141)    (30,141)
----------------------------------------------------------------------------
Dilution proceeds (1)                 0           0       4,789       4,789
----------------------------------------------------------------------------
Estimated value                 198,381     142,913     148,678     112,495
----------------------------------------------------------------------------


----------------------------------------------------------------------------
Shares (thousands)            37,869 (1)  37,869 (1)     41,239      41,239
----------------------------------------------------------------------------
Estimated NAV per share (1)        5.24        3.77        3.61        2.73
----------------------------------------------------------------------------

(1) Share figures for 2008 only include the 37,868,560 common shares of
    Arcan outstanding as all other convertible securities were
    non-dilutive. For 2007, shares include all dilutive securities
    namely: 36,491,555 common shares; the 6,550,400 Performance Shares
    convertible into 1,335,005 common shares (which conversion was affected
    in March, 2008); 1,500,000 performance warrants exercisable at $1.00
    per share; 598,631 warrants exercisable at an average of $1.93 per
    share; and 1,313,500 stock options that are in the money at their
    average exercise price of $1.38 (these were all dilutive securities
    exercisable below the $2.37 December 31, 2007 share trading price).



The growth in net asset value can be mainly attributed to value unlocked as a
result of Arcan's investment in two waterfloods, and the 9.4 net wells drilled
by Arcan in 2008, offsetting light oil commodity price declines from December
31, 2007. Arcan did not raise equity in 2008, growing reserves from cash flow
from operations and available bank lines. In 2008, Arcan invested $34.9 million
and grew the present value of the Company's reserves by $73.8 million (proved
plus probable discounted at 10%) ($171.5 million closing reserves plus $29.6
million in operating netbacks less $127.3 million opening reserves). Arcan
expects that its investments in waterfloods will continue to add value for 2009
and beyond from its current 18 year reserve life. These values and opening
numbers have been adjusted to include the impact of the NRF. Prior to the NRF,
Arcan had estimated its NAV at $3.34 per diluted share at December 31, 2007
(proved plus probable discounted at 10%).


The values below are based on the Company's December 31, 2008 reserve report
prepared by GLJ that is summarized in the AIF being filed concurrently on SEDAR.
Estimates of future net revenue do not represent fair market value.


Overview

The world changed significantly in 2008. What started as a year of record oil
prices ended with one of the most disappointing years on record. Declines in
commodity prices, imminent increases in royalty rates, financial liquidity
crises and massive sell-offs in equity markets marked the end of 2008. Arcan's
share price has not been immune to the market's collapse. In spite of external
forces, Arcan had an excellent year highlighted by low finding costs, solid
reserves additions and growth in NAV per share. These efforts culminated in a 38
percent increase in NAV to $3.77 per diluted share at December 31, 2008 over
$2.73 per diluted share at December 31, 2007. While Arcan is not emphasizing
short-term cash flow, focusing instead on building long-term value for the
future, Arcan's high netbacks and record funds from operations of just under $25
million in 2008 (well over double Arcan's 2007 funds from operations of $10.9
million) provided funding for a large proportion of Arcan's $34.9 million net
capital program. This helped Arcan avoid taking on too much debt, placing it in
a strong financial position to weather the current challenging times. Late in
2008, Arcan increased bank lines to $50 million based on the solid reserve and
NAV additions. Arcan expects to self fund through 2009 on cash flow from
operations and its bank line which has been reviewed and is now secured until
April 2010. To support its cash flow, Arcan has entered into a fixed price oil
swap contract to receive $64.40 per barrel in exchange for Canadian dollar WTI
on oil production of 500 barrels per day for the period from April 1 to December
31, 2009.


While the last year was one of tremendous challenges and changes, Arcan's
management saw the value that grows from investing in solid assets. Arcan
focused on its core light oil properties. In Deer Mountain, Arcan added value
through drilling, waterflood and increasing its land base from approximately 14
to 64 sections of contiguous land. At Hamburg, Arcan achieved GPP on its Slave
Point GG oil pool in February 2009. Arcan expects to increase production on this
property by adding pump jacks and implementing water injection in the middle of
the pool. Also, Arcan is reviewing drilling plans in light of the recent Alberta
royalty reduction incentives. For 2009, Arcan plans to prudently invest in
capital items within its cash flow and secure bank lines.


Arcan expended $34.9 million ($38.4 million including future tax on the
conversion of its performance shares) on its properties and infrastructure
during the year ended December 31, 2008, expanding net asset value by $44.2
million and replacing production by 6.0 times over December 31, 2007. Arcan's
investments left it with an 18 year reserve life, based on its fourth quarter
2008 production rate, weighted 82% towards light oil and an inventory of 9.8
mboe of proved plus probable reserves. For 2008 Arcan had record funds from
operations of $24.6 million and a recycle ratio of 3.3 times based on proved
plus probable finding, development and acquisition costs of $16.18 per boe and a
2008 corporate netback (operating netback less per boe general and
administrative and interest expense) of $53.98 per boe. Arcan exited 2008 with
$40.4 million in debt and working capital and for 2009 anticipates remaining
within cash flow and its $50 million in bank lines.


Arcan endured 2008 with production from a number of very productive wells under
regulatory limitations. In February 2009 Arcan received GPP in its Hamburg GG
pool. Arcan is in the process of converting one well to a water injector well
and is putting pump jacks on two other producing wells. When gas/oil ratios have
stabilized Arcan will lift production and expects to add significant production
volumes.


Production from 2008 was weighted to Arcan's two light oil properties, as
anticipated based on 2007 and 2008 investments in these two areas. Production
was 1,498 boe per day, a 27% increase from 1,178 boe per day average production
for the year ended December 31, 2007. For the three months ended December 31,
2008 production was 1,468 boe per day which is higher than the 1,122 boe per day
average production for the three months ending December 31, 2007. In 2008, the
true potential and value of Arcan's core areas have started to come to light,
and what Arcan has achieved so far is only the beginning. Paramount to Arcan and
to its management team, is adding value for the Company's shareholders. We have
taken a consistent approach to building solid assets and avoiding short-life,
low interest and non-core diversions. The statistics looked strong in 2007 and
even stronger in 2008. Arcan again posted over 30 percent year-over-year growth
in reserves, boasts an 18 year reserve life index, grew its production base by
over 30 percent, focused on light oil and built a strong asset base with a large
number of solid drilling locations with low risk profiles, high reserve
potential and high operating netbacks. This was a solid start. For 2008, Arcan's
management said that it would focus on value and that investments in
infrastructure would result in better capital efficiencies and Arcan succeeded
with a 3.3 recycle ratio.


Arcan expects to maintain its production base in 2009, supplemented by the new
50% working interest exploration natural gas well onstream on April 1, 2009,
through a prudent level of investment based on anticipated cash flow. As
commodity prices warrant, Arcan will take advantage of its infill drilling
locations in the Hamburg GG pool, which is expected to add significant volumes
to its production base. Arcan's production base has strengthened and it has
added an enviable depth of inventory in each of the three main properties.
Earlier investments provide the Company with a long-life, highly concentrated,
Company-controlled asset base. Metrics from 2008 show how Arcan can reap the
rewards that Arcan's management believe come with such an asset base. For 2009,
Arcan is implementing plans to hold down costs and turn drilling success and
water injection into solid reserve bookings, allowing Arcan to continue to
solidify its value.


At December 31, 2008 Arcan had 12 office employees and 9 full time field employees.

On March 2, 2009 Arcan issued a press release providing information on its oil
and gas reserves as of December 31, 2008 as well as unaudited estimates of
certain items relating to its year-end 2008 financial results. Additional
information regarding Arcan's annual results including the AIF, the management's
discussion and analysis for the three and twelve month periods ending December
31, 2008 and the three and twelve month periods ending December 31, 2007 and the
audited financial statements for the year ended December 31, 2008 and for the
year ended December 31, 2007, together with the notes related thereto, are being
filed by Arcan concurrently with this press release and will be available under
Arcan's SEDAR profile at www.sedar.com.


Arcan Resources Ltd. is an Alberta, Canada corporation that is principally
engaged in the exploration, development and acquisition of petroleum and natural
gas located in Canada's Western Sedimentary Basin. Arcan has 37,868,560 common
shares, 586,631 Warrants, 1,500,000 performance warrants, and 3,638,500 stock
options outstanding.


BOE Presentation - Production and reserve information is commonly reported in
units of barrel of oil equivalent ("boe"). For purposes of computing such units,
natural gas is converted to equivalent barrels of oil using a conversion factor
of six thousand cubic feet to one barrel of oil. BOEs may be misleading,
particularly if used in isolation. A BOE conversion ratio of six thousand cubic
feet of natural gas to one barrel of oil (i.e., 6 Mcf: 1 bbl) is based on an
energy equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead. Readers should be aware
that historical results are not necessarily indicative of future performance.


Special Note Regarding Non-GAAP Measures - This press release contains financial
terms that are not considered measures under Canadian generally accepted
accounting principles ("GAAP"), such as "funds from (used in) operations". This
measures is commonly utilized in the oil and gas industry and is considered
informative for management and shareholders. Specifically, "funds from (used in)
operations" represents net loss for the period adjusted for non-cash items in
the statement of operations. This term should not be considered an alternative
to, or more meaningful than cash flow from operating activities as determined
under GAAP as an indicator of the Corporation's performance. Management
considers this term to be important as it helps evaluate performance and
demonstrates the Corporation's ability to generate sufficient cash to fund
future growth opportunities.


Advisory Regarding Forward-Looking Information and Statements

This press release contains certain forward-looking information and statements
within the meaning of applicable securities laws. The use of any of the words
"expect", "anticipate", "continue", "estimate", "guidance", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking information or
statements. In particular, but without limiting the foregoing, this press
release contains forward-looking information and statements pertaining to the
following: Arcan's income taxes, tax liabilities and tax pools; the volume and
product mix of Arcan's oil and gas production; oil and natural gas prices and
Arcan's risk management programs; the amount of asset retirement obligations;
future liquidity and financial capacity and resources; cost and expense
estimates; results from operations and financial ratios; cash flow
sensitivities; royalty rates and their impact on Arcan's operations and results;
future growth including development, exploration, and acquisition and
development activities and related expenditures.


The forward-looking information and statements contained in this press release
reflect several material factors and expectations and assumptions of Arcan
including, without limitation: that Arcan will continue to conduct its
operations in a manner consistent with past operations; the general continuance
of current or, where applicable, assumed industry conditions; availability of
debt and/or equity sources to fund Arcan's capital and operating requirements as
needed; the continuance of existing and, in certain circumstances, proposed tax
and royalty regimes; the accuracy of the estimates of Arcan's reserve volumes;
and certain commodity price and other cost assumptions. Arcan believes the
material factors, expectations and assumptions reflected in the forward-looking
information and statements are reasonable at this time but no assurance can be
given that these factors, expectations and assumptions will prove to be correct.
The forward-looking information and statements included in this press release
are not guarantees of future performance and should not be unduly relied upon.
Such information and statements 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 information or statements
including, without limitation: changes in commodity prices; unanticipated
operating results or production declines; changes in tax or environmental laws
or royalty rates; increased debt levels or debt service requirements; inaccurate
estimation of Arcan's oil and gas reserves volumes; limited, unfavourable or no
access to debt or equity capital markets; increased costs and expenses; the
impact of competitors; reliance on industry partners; and certain other risks
detailed from time to time in Arcan's public disclosure documents including,
without limitation, those risks identified in this press release, and in Arcan's
Annual Information Form for the year ended December 31, 2008, copies of which
are available on Arcan's SEDAR profile at www.sedar.com.


The forward-looking information and statements contained in this press release
speak only as of the date of this press release, and Arcan does not assume any
obligation to publicly update or revise them to reflect new events or
circumstances, except as may be required pursuant to applicable laws.