The Phoenix Canada Oil Co. Role in the "Hydrogen Economy"

TORONTO, Nov. 28 /PRNewswire-FirstCall/ - PhoenixCanada Oil Company

(TSXV: PCO & OTC BB: PHXCF) - About three months ago, Management opined on theinevitability of $100 oil. As of today, $100 oil is close-and-almost -- notmore than a day's trading below the breakthrough !! With the world's oilconsumption now over 85-million barrels per day -- and with the realisticexpectation for 2030 demand exceeding 115-million barrels per day -- the"doomsday Peak Oil" scenario is considerably closer to its climax.

The recent headlines on Brazil's "exciting" once-in-a-decade 5 to8-billion barrel offshore oil discovery generated major financial marketexcitement (by way of a 26% price increase for Petrobas's NYSE-traded shares).What the press did not address was, firstly, the fact that the discovery wellcost over $250-million -- and secondly, that at the world's current oilconsumption, a 5-billion barrel reserve is depleted in only 59 days !! And asan 8-billion barrel find -- the aggregate new reserves would be depleted inonly 94 days !! Put another way -- at the world's current oil consumptionrate, the reserves found in this truly major and newsworthy oil discoverywould be depleted in about 3-months (assuming that the new field reserves areat the top end of current estimates !!).

The financial and commodity markets are also turning a blind eye to thefact that the world's current oil finding rate -- increasingly difficult andcostly in any event -- currently comprises only about 50% of current world oilconsumption !! In our world of inexorably rising oil consumption (think"China" and "India"), the industry must also contend with the recurrent supplyuncertainties deriving from natural disasters and the many notably unstablepolitical regimes involved. Is there a more compelling argument for theinevitable "Hydrogen Economy?"

Understandably -- the universe of "alternative" energies (solar, wind,ethanol, biofuels, et al) are now being widely promoted. But without a knownexception, all remain dependent upon direct and indirect Government subsidiesin varying forms. A long list of valid and other reasons support subsidies for"alternative" energy sources -- despite hydrogen being increasingly understoodand accepted as the obvious, and only, REPLACEMENT energy resource.

The front-and-center issue is that the industrialized world must soonembrace the "Hydrogen Economy" simply as a matter of survival -- as theworld's oil and gas resources approach depletion. Other energy fuels, as coaland nuclear, are inevitably either environmentally degrading -- or in the caseof nuclear, generate dangerous waste products incurring increasing disposalcosts.

The "Hydrogen Economy" will eliminate the rapidly rising environmentalcosts of carbon dioxide, nitrous oxide (NOX) and sulphurous oxide (SOX)emissions (greenhouse gases) and the resulting global warming. The longer termcosts of maintaining environmental stability cannot be ignored. By generating"clean" energy, with benign environmental impact, the "Hydrogen Economy" willprovide the only longer term, economic pristine alternative (more correctly --the REPLACEMENT alternative).

Depletion and pollution concerns will be substantially eliminated in the"Hydrogen Economy" because our planet's hydrogen reserves are virtuallyinexhaustible -- and its combustion products, exclusively heat and watervapour, are environmentally pristine. A reminder here that our Sun's energy isfuelled by burning hydrogen !!

It is increasingly evident and accepted that the inevitable "HydrogenEconomy" will have a dramatic economic impact on the world as we know it --and certainly on the many major players in the massive global energy industryuniverse.

About the Phoenix Position in Hydrogen Generation:Phoenix intends to maintain a leading role in the future "HydrogenEconomy" -- capitalizing on the primary development milestone we reached withthe October 2006 grant of U.S. Patent 7,122,171 covering the innovative,proprietary hydrogen gas generation technology on which Phoenix holds longterm, worldwide exclusivity rights through its U.S. subsidiary -- PhoenixInternational Energy Inc. Additional international patent filings have beencompleted under the rules of the International Patent Cooperation Treaty inCanada, the European Union, Australia and India; other national coverages areunder review.

The Phoenix position is secured through the comprehensive TechnologyLicense Agreement with the major U.S. research university under which theintellectual property rights are maintained for a period of 20 years beyondthe 17-year life of the last patent issued under accord. Phoenix maintainsthat the newly issued U.S. Patent establishes a strong measure of confidencethat no "prior art" has been disclosed in its patent application examinationprocess that may conflict with the basic, proprietary "foundation" technologycovering the solar light-powered generation of minimal cost pure hydrogen fuelgas from an ordinary water feedstock. The benign environmental credentials ofhydrogen generation (from a water feedstock) -- and its combustion products

(only heat and water vapour) -- will ensure the survival of a more pristineplanet Earth.SOURCE PhoenixCanada Oil Company LimitedS. Donald Moore, President, T. (416) 368-4440, E. phoenix@atlantor.com