MONTREAL, April 12 /CNW Telbec/ - Junex (JNX - TSX VENTURE) and Petrolia (PEA - TSX VENTURE) are pleased to announce the completion of a partnership agreement that will accelerate the discovery and production of oil in Quebec's Gaspe Peninsula. Through this partnership both companies will control approximately 70% of all exploration permits in the Gaspe Peninsula, primarily those permits that are considered to be most favourable to hydrocarbon discovery and production. The objective of the partnership is to combine the landholdings of both Junex and Petrolia and then to leverage the Junex technical expertise with Petrolia's financial resources to explore and develop oil production as soon as possible. Three targets have already been identified. These targets are located at shallow depths and are ready to be drilled in 2005, wholly financed with Petrolia's cash. The partnership between Junex and Petrolia will result in the initiation of an intensive drilling program costing between $5M and $10M to be carried out within one year. In accordance with the partnership agreement, Junex is transferring to Petrolia: - Two permit blocs totalling 6,366 km2 located between Murdochville and GaspDe (Blocs "B" and "C" on the map available at www.petroliagas.com and www.junex.ca) - A right of first refusal on two other permit blocks held 100% by Junex and totalling 5,885 km2 (Blocs "D" and "E" on the map available at www.petroliagas.com and www.junex.ca) The transferred permits adjoin permits currently held by Petrolia in the Gaspe Peninsula that surround the Galt permit where Junex has a producing a natural gas field and indications of oil as evidenced by 200 barrels of oil production during a 2004 production test. In return for the Permit transfer, Junex is receiving: - 3,128,718 shares of Petrolia at a price of $0.40 ($1,251,487) - A "Back-In" right in the development and production project equivalent to 50% of Petrolia's participation in case of any oil or gas discovery on Blocs B and C, and - The right to elect a Junex representative to the Petrolia Board of Directors. "This partnership will rapidly bring Junex closer to its main goal which is to operate profitably while developing the oil and gas potential of the Gaspe Peninsula.. This strategy will also minimize the financial risks often associated with exploration and will accelerate hydrocarbon discoveries in the Gaspe Peninsula" states Mr. Jean-Yves Lavoie, P. Eng., President of Junex. "With this agreement, Petrolia's exposure via hydrocarbon exploration Permits will increase from 2,388 km2 to 14,650 km2, representing an increase from 10 to 65% of all the exploration permits that currently exist in the Gaspe Peninsula.. Petrolia will hold a strategic position in the Gaspe Peninsula, an area which has clearly shown excellent potential for hydrocarbon discovery. With a working capital of $2,6M, we are determined to pursue an aggressive exploration program to quickly explore our greatly expanded Gaspe Peninsula holdings" stated Mr. AndrDe Proulx, President of Petrolia. The completion of this transaction is subject to the approval of Regulatory authorities and of the Board of Directors of each company. About Junex Active in the natural resources sector, Junex is a unique company in Quebec since it is the only natural brine and natural gas producer in the Province. In parallel to these production activities that are located in the BDecancour area (brine) and in the GaspDe (natural gas), Junex continues its efforts to develop a natural gas underground storage facility beneath the BDecancour industrial park.. With more than 4 million acres under exploration permit, not including the transaction with Petrolia, Junex is also the leading oil and gas producer and explorer in Quebec. About Petrolia Petrolia is an oil and gas company that concentrates on hydrocarbon exploration in the Gaspe Peninsula. Listed on the TSX Venture Exchange in February 2005, Petrolia has working capital of $2.7M and a capitalization 12,551,389 common shares issued and outstanding.. Near term, Petrolia's goal is to produce oil and gas from its Gaspe Peninsula properties or from one of its newly acquired partnership properties. The company is currently conducting a detailed seismic survey on a potential hydrocarbon reservoir located on the western border of its original Gaspe property. The TSX Venture Exchange has neither approved nor disapproved the information contained herein