SKANA Invests $8,500,000 in Heartland Resources Inc.

Heartland stated that it intends to use approximately $18.5 million of the proposed financing to purchase all the issued and outstanding shares of Pebble Petroleum Inc. ("Pebble Petroleum"), to fund repayment of Pebble Petroleum's outstanding convertible debt of $17.2 million to Emerald Bay Holdings Ltd. ("Emerald Bay"), and for transaction costs. An additional $25 million will be allocated to a proposed four well pilot drilling program on the PNG licenses owned by Pebble Petroleum. Pebble Petroleum is a privately owned British Columbia corporation which, directly and through its wholly owned US subsidiary Rover Resources Inc., holds the petroleum and natural gas exploration rights to approximately 150,000 gross and net acres of property in western Canada and the western United States. Pebble Petroleum acquired its PNG leases pursuant to an agreement with Eternal Energy, Fairway Exploration LLC ("Fairway"), a private US corporation controlled by Steven Swanson, and Prospector Oil Corp. ("POI"), a private US corporation controlled by Mr. Richard Findley, who together identified and provided initial analysis of the potential of the prospects. Fairway and POI have agreed to provide consulting services to Pebble Petroleum on an as needed basis for a period of two years.

Gregory Clarkes and Brian Tingle, directors of SKANA, are significant shareholders of Heartland. Brian Tingle is also a director of Heartland. Messrs. Clarkes and Tingle were not members of the independent committee of directors of SKANA which approved the Heartland investment.

About SKANA Capital Corp.

SKANA is listed on the TSX Venture Exchange as an Investment Issuer and carries on business as a merchant bank. It makes strategic investments in oil and gas and other resource-based opportunities that it believes will offer excellent returns through its financial involvement and management expertise.

The TSX Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release.

This news release contains certain statements that may be deemed "forward-looking statements". All statements, other than statements of historical fact, that address events or developments that SKANA expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although SKANA believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploration and production successes or failures, continued availability of capital and financing, inability to obtain required shareholder or regulatory approvals, and general economic market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of SKANA's management on the date the statements are made.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. (604) 669-4899