Petrolympic and Squatex Enter Into Joint Operating Agreement with Established Operators on Lowland Properties

Petrolympic receives $1.05M initial cash payment

Quebec, November 25th 2008 - Petrolympic Ltd. ("Petrolympic" or the "Company") (PCQ, TSXV) is pleased to announce that it has, together with its joint venture partner Ressources et Energie Squatex Inc. ("Squatex"), entered into a farmout and joint operating agreement (the "Joint Operating Agreement") with Calgary-based Canbriam Energy Inc. ("Canbriam") pursuant to which Canbriam will have the right to earn a 60% interest in up to 32,000 hectares (79,074 acres) of exploration permits in only the Queenston, Lorraine and Utica Formations (down to the top of the Trenton Formation) that form part of the joint venture between Squatex and Petrolympic (the "Existing JV"). As described in the Company's press release of June 30, 2008, Petrolympic has a 30% interest in all of the properties that are held by the Existing JV which are comprised of 36 exploration permits totaling 672,438 hectares (1,661,630 acres) in the St. Lawrence Lowlands, Bas St. Laurent and Gaspé Peninsula.

The key terms of the Joint Operating Agreement are as follows:

  • Canbriam made cash payments of $2.45 million to Squatex and $1.05 million to Petrolympic upon the parties entering into the Joint Operating Agreement.
  • Within 3 months from entering into the Joint Operating Agreement, Canbriam will make a determination as to which 2 permits it would like to designate as forming part of the farmout lands (the "Farmout Lands") under the Joint Operating Agreement.
  • Canbriam shall drill 1 vertical well to the base of the Utica Formation and/or 30 metres into the top of the Trenton Formation prior to October 31, 2009 (the "Initial Exploration Program"). Within 90 days of completing the Initial Exploration Program, Canbriam shall select and notify the Existing JV of an 8,000 hectare parcel of contiguous Farmout Lands for which Canbriam shall have earned a 60% interest. The remaining 40% interest shall be held by Squatex and Petrolympic based on the terms of the Existing JV (i.e. Squatex - 28% and Petrolympic – 12%).
  • Canbriam shall have the option to earn a 60% interest on up to an additional 24,000 hectares comprising part of the Farmout Lands by drilling up to 6 vertical/horizontal wells and making cash payments up to $9,450,000 to Squatex and $4.05 million to Petrolympic prior to November 30, 2011. If Canbriam earns the interest on such Farmout Lands, the remaining 40% interest shall be held by Squatex and Petrolympic based on the terms of the Existing JV (i.e. Squatex - 28% and Petrolympic – 12%).
  • Canbriam shall be responsible for all drilling costs, completion costs or abandonment costs incurred with respect to the earning wells described above.

Mendel Ekstein, President and CEO of Petrolympic, and Jean-Claude Caron, President of Squatex, are pleased to welcome Canbriam to the development of this very promising area. "We are excited to have attracted Canbriam's established team of professionals to help Squatex and Petrolympic expedite our progress in the Queenston, Lorraine and Utica Formations. It is a strong statement made by a knowledgeable partner on the potential of our properties."

ABOUT PETROLYMPIC LTD.

In addition to the 30% legal and beneficial interest in 36 exploration permits totaling 1,661,630 acres (672,438 hectares) in the St. Lawrence Lowlands, Bas St-Laurent and Gaspé Peninsula in Québec through a joint venture arrangement with Ressource & Énergie Squatex inc, Petrolympic holds more than 281,468 acres (113,906 hectares) of oil and gas exploration permits in the Appalachian Basin of Quebec that include holdings in the Gaspe Peninsula and in the southern part of the St. Lawrence Lowlands. The Gaspé block of exploration permits totals 40,885 hectares located between Rimouski and Matane in the Province of Quebec immediately southwest of Lake Matapedia. The St. Lawrence Lowlands Block of exploration permits is located on the south shore of the St. Lawrence directly south of Valleyfield less than 30 kilometers southwest of Montreal in the Province of Quebec.

ABOUT CANBRIAM ENERGY

Canbriam Energy, Inc. is a privately held oil and gas exploration and production company with a focus on certain onshore regions of Canada and the United States. Formed with financial support from Warburg Pincus and ARC Financial, Canbriam Energy is led by a veteran management and technical team with extensive relevant experience and a proven record of finding and developing hydrocarbon reserves.

ABOUT RESSOURCES & ENRGIES SQUATEX INC.

Ressources & Energie Squatex Inc is a private oil and gas exploration company based in Kuujjuarapik, northern Quebec. It has been active since 2001, exploring its 988,609 acres (400,076 Hectares) holdings located in the Lower St. Lawrence and Gaspé. In 2006, Squatex enlarged its properties by acquiring 12 additional exploration permits covering 673,021 acres (272,362 Hectares) in the St. Lawrence Lowlands between Montreal and Quebec City to obtain rights over various exciting type of potential plays. Since June 2008, Squatex owns 70% of its land holding, the remaining 30% being now owned by Petrolympic.

FORWARD-LOOKING STATEMENTS

This press release includes certain "forward-looking information" within the meaning of the Securities Act (Ontario), including, but not limited to, statements as to timing and extent of exploration programs and the availability of exploration results. As such, forward-looking information addresses future events and conditions and so involves inherent risks and uncertainties, as disclosed under the heading "Risk Factors" and elsewhere in Petrolympic documents filed from time to time with the Ontario Securities Commission and other regulatory authorities. Actual results could differ significantly from those currently projected as a result of, among those factors, adverse weather, regulatory changes, delays in receiving permits, accidents and delays in completing exploration activities not all of which are in the control of Petrolympic. The forward-looking information contained herein is Petrolympic's reasonable estimate today of future events and conditions, but no assurance can be given that such events or conditions will occur. The reader is cautioned not to rely on these forward-looking statements. Petrolympic disclaims any obligation to update these forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.