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Candax Provides Update on Chaal Permit

Source: www.gulfoilandgas.com 9/28/2010, Location: Africa

Candax Energy Inc. announces that according to the Journal Official de la Republique Tunisienne, the Chaal Permit (which covered an area of 1,200 km2, situated onshore central Tunisia approximately 50 km west of the city of Sfax and in which Candax had a 60% working interest) has been annulled. Having requested a one year extension with the intention of testing the commerciality of the Chaal-1 gas discovery, Candax and its partners are in the process of considering their options in relation to this decision.

Candax Energy Inc. is an international energy company with its head office in Toronto and offices in London, Tunis, and Madagascar. The Candax group is engaged in exploration and the production of oil and gas and power generation in Tunisia and holds an interest in an exploration permit in Madagascar.

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