Grand Pacarima Rejects Offer and Willing to Negotiate

VERNON, BC without any disclaimer of control under Regulation 12B-22, directors of the subject corporation, The Castora Family Partnership, Venezuela Investments, Incorporated, S.A., Manuel Castora, parties related to the bequest of Vincente M. Castora and Davis Investment Group hereby provide Modern Energy Corp. with formal notification that all designated parties reject the offer executed November 6, 2007 as unlawful under certain regulations of the Securities and Exchange Commission.

Specifically, under Rule 14A-3A, no proxy statement has been filed with the SEC and distributed to shareholders. Additionally, under Rule 14A-8, a shareholder proposal must be included with full disclosure of the transaction. Furthermore, under Rule 14A-12 any solicitation prior to proxy requires notice of proxy approval.

With respect to the "election" of Mr. Abdoulladjanov as chairman, there has been no proxy submitted under Rule 14A and no record of any Board of Directors resolution. An election of officers and directors must also comply with certain provisions of Regulations S-K.

Under the terms of the Merger and Acquisitions Agreements executed January 17, 2006 and February 16, 2006, Grand Pacaraima Gold Corporation may not issue common shares in excess of 61,080,272 without the approval of the Castora Family Partnership and Davis Investment Group. Consequently, issuance of 120 million shares to shareholders of Modern Energy Corp. would violate the terms of the Merger Agreement. Furthermore, issuance of 11 million common shares without due cause would also violate certain provisions of the Securities Acts of 1933 and 1934 along with the merger agreement. Additional issuance of any non-restricted shares would also violate Rule #144.

However, major shareholders of Grand Pacaraima Gold Corporation wish to conduct future negotiations with Modern Energy Corporation related to a potential merger, acquisition of substantial oil and gas properties and a subsequent spin-off of oil and gas properties.

Ronald Davis (RD) Rotstein Financial Advisor 201-373-1155 Grand Pacaraima Gold Corp.