Manitoba Ethanol Project Underway

TORONTO - Jun 29/06 - SNS -- Outlook Resources Inc. and Parkland Ethanol Cooperative (PEC) signed a memorandum of understanding for the development, construction and operation of a 150 million liter or 40 million gallon ethanol plant at the Grandview Bio-Economy Park in Manitoba.

Each company owns a 50% interest in the project and will provide a CDN $12 million equity contribution to the plant. The balance of the financing needed for the construction of the ethanol plant will be arranged by Outlook.

As part of its commitment to the Grandview project Outlook has agreed to work with PEC on finalizing their business plan in addition to preparing a bankable financing plan by July 15, 2006. Upon completion of these documents it is the intention of OLR and PEC to be ready to make public offerings for their $12 million dollar contributions to the project by August 31, 2006.

Outlook will be paid a fee equal to 1% of the capital cost required to build the Bio-Fuels plant as compensation for certain services rendered. It is anticipated that, once the plant is operating, Outlook will provide management services to the plant, and that Outlook's compensation will be based on 2% of EBITDA resulting from the operation of the Bio-fuels facility. Profits from the plant will then be shared in proportion to the respective ownership positions of OLR and PEC following the sourcing of the senior debt required.

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