Corridor announces $15 million financing

HALIFAX, July 6 /CNW/ - Corridor Resources Inc. (CDH - TSX-V)
(the "Corporation") is pleased to announce today that it has entered into an
agreement with Jennings Capital Inc. to issue on a "best efforts" agency
basis, 4,166,667 Common Shares at a price of $2.40 per share and 1,754,386
Flow-Through Common Shares at a price of $2.85 per share for aggregate gross
proceeds of approximately $15,000,000 (the "Offering"), to be issued by way of
private placement exemptions as provided for in the Securities Act (Alberta)
and comparable provisions in other provinces in Canada.
In addition, the Corporation has granted Jennings an over allotment or
"green shoe" option, to be sold on a "best efforts" agency basis, exercisable
on or prior to closing, of up to 4,166,667 Common Shares at a price of $2.40
per Common Share, which would increase the size of the Offering to
approximately $25,000,000 if fully exercised.
The private placement financing is scheduled to close by late July, 2005
and is subject to regulatory approval and completion of definitive
documentation. The proceeds of the offering will be used to fund the
Corporation's ongoing exploration and development programs in Eastern Canada,
including further exploration and development on the McCully property in New
Brunswick in 2005 and for general corporate purposes. In the event that the
Corporation reaches an agreement in respect of a farmout of its McCully
property, the proceeds may be used to fund exploration on the Corporation's
other prospects in Eastern Canada.

Certain information regarding the Corporation contained herein may
constitute forward-looking statements under applicable securities laws. Such
statements are subject to known or unknown risks and uncertainties that may
cause actual results to differ materially from those anticipated or implied in
the forward-looking statements.

Corridor is a junior oil and gas exploration company, headquartered in
Halifax, Nova Scotia, with interests onshore in New Brunswick, Prince Edward
Island and Quebec and offshore in the Gulf of St. Lawrence.

The TSX Venture Exchange has neither approved nor disapproved the
information contained herein.