Exxel Energy Corp. Announcements

(TSX-V Symbol: EXX)

VANCOUVER, Oct. 26 /CNW/ - Exxel Energy Corp. ("Exxel") (TSX-V Symbol:
EXX) today announced the following in connection with the review conducted by
its auditors as part of the filing by Exxel of a short form prospectus as
previously announced on September 21, 2006:

Amendments to May 31, 2005 MD&A
-------------------------------

Exxel has amended its management's discussion & analysis ("MD&A") for the
period ended May 31, 2005 (the "May 31 MD&A") appearing on SEDAR on October
11, 2005. The amended May 31 MD&A is available electronically at
www.sedar.com.

The amendments to the May 31 MD&A are:

<<
-   working interest in the Williams Fork formation in which the
    RWF 14-13 Well in the Rifle Creek area of the Piceance Basin,
    Garfield County, Colorado, USA (the "Williams Well") from 16.5% to
    16.98%;

-   total revenue for the year ended May 31, 2005 from  $328,650 to
    $328,267, for the year ended May 31, 2004 from $339,234 to $338,505
    and for the year ended May 31, 2003 from $ 461.00 to $0.00;

-   tax losses calculated under the Income Tax Act (Canada) from
    approximately $110,000 to approximately $122,000;

-   revenue for Q2, 2005 from $165,065 to $165,056, for Q4, 2005 from
    $328,650 to $328,267, for Q1, 2004 $77,753 to $75,801, for Q3, 2004
    from $213,458 to $212,751 and Q4, 2004 from $339,234 to $338,505; and

-   basic income per share for Q3, 2004 from $0.02 to $0.03 per share.

The May 31 MD&A will otherwise remain unamended.

Amendments to December 31, 2005 MD&A
------------------------------------

Exxel has amended its MD&A for the period ended December 31, 2005 (the
"December 31 MD&A") appearing on SEDAR on May 1, 2006. The amended December 31
MD&A is available electronically at www.sedar.com.

The amendments to the December 31 MD&A are:

-   clarification as to the reporting currency used in the December 31
    MD&A;

-   working interest in the Williams Well from 16.5% to 16.98%;

-   loss per share and net loss per share for Q2, 2005, on a fully
    diluted basis, from $0.05 to $0.07 per share;

-   income per share and net income per share for Q3, 2004, on a basic
    basis and on a fully diluted basis, from $0.02 to $0.03 per share;

-   amount paid to a private company controlled by a director and officer
    of Exxel for the provision of management, administration, information
    and compliance services, and accounting, rent and utilities from
    $41,600 to $45,980;

-   amount of interest paid to Q Investments Ltd. during the period, of
    which a director and officer of Exxel is a shareholder ("Q"), while a
    loan between Q and Exxel was outstanding from a total of US$177,033
    to a total of US$204,109.14;

-   amount of accounts receivable at December 31, 2005 from $32,005 to
    $128,946;

-   amount of prepaid expenses at December 31, 2005 from $966,617 to
    $869,675; and

-   number of common shares outstanding from 76,251,005 to 80,251,005.

The December 31 MD&A will otherwise remain unamended.

Further Amendments to June 30, 2006 MD&A
----------------------------------------

Exxel has further amended its MD&A for the interim period ended June 30,
2006 (the "June 30 MD&A") appearing on SEDAR on August 29, 2006, and
previously refiled and appearing on October 13, 2006. The further amended June
30 MD&A is available electronically at www.sedar.com.

The additional amendments to the June 30 MD&A are:

-   clarification as to the reporting currency used in the June 30 MD&A;

-   working interest in the Williams Well from 16.5% to 16.98%;

-   loss per share and net loss per share for Q2, 2005, on a fully
    diluted basis, from $0.05 to $0.07 per share;

-   total cash and cash equivalents at May 31, 2005 from $56,665 to
    $51,914;

-   total cash provided by operating activities as at May 31, 2005 from
    $17,528 to $159,898;

-   amount invested in oil and gas property acquisitions and expenditures
    utilized as at May 31, 2005 from $5,040,924 to $5,188,045; and

-   US$ amount of new funding Exxel would receive upon the conversion in
    full of the Company's outstanding convertible securities from
    US$14,250,000 to US$7,500,000.

The June 30 MD&A will otherwise remain unamended.

Amendments to December 31, 2005 Financial Statements
----------------------------------------------------

Exxel has amended its audited consolidated financial statements for the
seven month period ended December 31, 2005 (the "Audited Financial
Statements") appearing on SEDAR on May 1, 2006. The amended Audited Financial
Statements are available electronically at www.sedar.com.

The amendments to the Audited Financial Statements are:

-   auditors' report to the shareholders of Exxel has been revised to add
    the following paragraph:

    The financial statements as at and for the year ended May 31, 2005,
    prior to the restatement to reflect the change in functional and
    reporting currency as described in Note 1, were audited by other
    auditors who expressed an opinion without reservation on those
    statements in their report dated September 30, 2005. The adjustments
    to the financial statements as at and for the year ended May 31, 2005
    have been audited by us and in our opinion, such adjustments, in all
    material respects, are appropriate and have been properly applied.

-   number of common shares outstanding in Note 6(a) from 69,050,201 to
    69,251,005.

The Audited Financial Statements will otherwise remain unamended.

Amendments to Annual Information Form
-------------------------------------

Exxel has amended its annual information form dated August 31, 2006 for
the fiscal year ended December 31, 2005 (the "AIF") appearing on SEDAR on
August 31, 2006. The amended AIF is available electronically at www.sedar.com.

The amendments to the AIF are:

-   the date of the loan agreement, which loan was used to fund Exxel's
    initial payments under an agreement relating to Exxel's Rifle Creek
    project (the "Loan Agreement"), between Q and Exxel from March 16,
    2005 to April 7, 2005; and

-   the date of an amended loan agreement relating to the Loan Agreement
    from August 4, 2005 to September 2, 2005.
>>

The AIF will otherwise remain unamended.

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responsibility for the adequacy or accuracy of this release.