Grifco International, Inc. Announces Shareholder Procedures to Receive Warrants for Stake in Net Royalty Interest on Gas Propert

  
    
  
  
    
      Grifco International, Inc. (Pink Sheets:GFCI) previously announced on 
      December 14, 2006 that it has agreed to spin-off its Precision Drilling 
      & Exploration, Inc. (“PDEI”) 
      subsidiary to Universal Energy Resources, Inc. (“UERI”) 
      in consideration of a stake in the Net Royalty Interest or N.R.I. on gas 
      leases located in Crockett County, Texas.
    
    
      About PDEI
    
    
      PDEI is the owner and operator of a land rig and ancillary equipment. 
      Under contract with UERI, PDEI recently completed Adams #12 gas well in 
      Crockett County, TX. This is the first of 208 drill sites in Crockett 
      County, TX which will be spudded by PDEI.
    
    
      About UERI
    
    
      UERI is a private company formed in August 2006 by Jim Dial to act as 
      the operating manager and general partner of gas leases under option in 
      Crockett County, TX and elsewhere. UERI will operate at arms length from 
      GFCI in order to protect its shareholders and assets from the 
      liabilities inherent in the drilling and exploration industry.
    
    
      About the Warrants
    
    
      As compensation to its shareholders for the asset separation of PDEI, 
      GFCI will grant to its shareholders of record as of close of business on 
      December 25, 2006 staggered callable warrants (A,B&C Warrants) entitling 
      each warrant holder the right, but not the obligation, to convert into a 
      series of preference drilling participation shares of PDEI. The company 
      is now making the “A” 
      warrant available to its shareholders of record as follows:
    
    
      Series A Preference Drilling 
      Participation Shares:
    
    
      GFCI will grant its shareholders as of the Record Date a total of 
      20,000,000 two year warrants converting on a 1:1 basis into Series A 
      Preference Drilling Participation Shares at a price of $.20 per warrant. 
      Series A Preference Drilling Participation Shares entitle the owner to a 
      mandatory prorata dividend of 33 1/3% on the Net Royalty Income from gas 
      production realized on a total of ten (10) certain gas leases in 
      Crockett County, TX. Warrant Holders must convert in minimum traunches 
      of $400,000 per gas well to be spudded.
    
    
      The warrants may be subject to a registration statement at the election 
      of the parties at which time they may become “callable”. 
      If the warrants are not registered they will be become “free 
      trading” in 2 years pursuant to Rule 144K.
    
    
      How to Receive Warrants
    
    
      Shareholders of GFCI who have proof of physical ownership of shares as 
      of the record date of December 25, 2006, should fax a copy of the front 
      and back of their GFCI share certificate to 936-788-6667 before close of 
      business on March 23, 2007 at 5:00 p.m. Conroe, TX time.
    
    
      Forward-Looking Cautionary Statements
    
    
      Any statements that are not based on historical fact are forward-looking 
      statements. Although such statements are based on management’s 
      current estimates and expectations, and currently available competitive, 
      financial, and economic data, forward-looking statements are inherently 
      uncertain. We, therefore, caution the reader that there are a variety of 
      factors that could cause business conditions and results to differ 
      materially from what is contained in our forward-looking statements.