SPI Canadian Spirit Resources Inc

Canadian Spirit Resources Inc. ("CSRI" or the "Corporation") (TSX
VENTURE:SPI)(OTCBB:CSPUF) announces the release of its interim financial results
and Management Discussion and Analysis ("MD&A") for the three month period ended
March 31, 2012.


This news release summarizes information contained in the unaudited interim
condensed financial statements and MD&A for the three month period ended March
31, 2012 and should not be considered a substitute for reading these full
disclosure documents which are available on SEDAR at www.sedar.com or the
Corporation's website at www.csri.ca.


CSRI is a natural resources company focusing on the identification and
development of opportunities in the unconventional natural gas sector of the
energy industry.




----------------------------------------------------------------------------
SUMMARY QUARTERLY DATA                                                      
(all amounts are presented in Canadian                                      
 dollars)                                                                   
                                                                            
For the three months ended, and as at, March                                
 31                                                     2012           2011 
----------------------------------------------------------------------------
                                                                            
Average sales volumes of natural gas (Mcf/d)           1,934          1,917 
Average sales price of natural gas ($/Mcf)     $        2.11  $        3.35 
Natural gas sales, before royalties            $     372,252  $     407,013 
Operating netbacks, after royalty credits                                   
 applied                                       $      87,174  $     364,631 
Cash flow from operating activities            $    (271,242) $     (64,335)
Net loss and comprehensive loss                $    (942,567) $    (702,752)
Loss per share, basic & diluted                $       (0.01) $       (0.01)
Net working capital                            $   1,885,895  $  18,176,642 
Total assets                                   $  62,118,639  $  77,574,080 
Shareholders' capital                          $  58,554,046  $  74,900,078 
Common shares outstanding                         76,238,661     74,561,061 
Total capital expenditures                     $     359,732  $   2,761,743 



PRODUCTION

CSRI's natural gas sales volume averaged 1.9 MMcf/d (net) during the three
months ended March 31, 2012. The Corporation has 5 (1.75 net) Montney wells
being produced through its 10 MMcf/d (3.5 net) gas plant located on its western
lands at Farrell Creek. Due to the depressed state of natural gas prices, and
the fact that the natural gas being produced has no associated natural gas
liquids, the Corporation has no immediate plans for further development activity
on its western lands.


FARRELL CREEK NATURAL GAS & LIQUIDS RESOURCE REPORT

A Montney resource assessment of the Corporation's Farrell Creek lands in
northeastern British Columbia was prepared by GLJ Petroleum Consultants ("GLJ")
as at February 29, 2012. As previously announced (News Release April 30, 2012),
GLJ determined that gross discovered and undiscovered natural gas
initially-in-place was 5 Tcf and 5.7 Tcf, respectively. GLJ had also provided an
estimate of associated natural gas liquids within its eastern lands at Farrell
Creek with best estimates of company interest economic contingent natural gas
liquids resource of 0.77 million barrels and company interest prospective
natural gas liquids resource of 15.9 million barrels.


FARRELL CREEK OUTLOOK

CSRI continues to focus on its eastern lands due to their prospectivity for
natural gas liquids. Along with the operator, Canbriam Energy, the Corporation
intends to frac and test the previously drilled vertical well at 12-7 in the
third quarter 2012. This well will be used to help optimize where future
horizontal wells will be placed into the Montney Formation (upper, middle,
lower) such that natural gas and natural gas liquids production can be
maximized.


With a successful test at 12-7, the Corporation intends to drill and frac one,
or possibly two, horizontal wells on its eastern lands with a view to adding
incremental reserves and production. Production would require access to
Talisman's nearby gas gathering system. At this point, discussions with Talisman
indicate that they would be amenable. Frac water for the above activities would
be supplied by the water pipeline (25% owned by CSRI) that the operator had
constructed from the Williston Reservoir. This water pipeline will be
commissioned within the next few months and will be fully operational by that
time.


FINANCIAL RESOURCES

The Corporation currently has no debt, and has C$1.9 million of working capital
as at March 31. 2012. CSRI intends to fund any additional capital required for
the program outlined above through equity raises in the capital markets.


Information regarding CSRI is available on SEDAR at www.sedar.com or the
Corporation's website at www.csri.ca.


The corporate information contained in this news release may contain
forward-looking forecast information. The reader is cautioned that assumptions
used in the preparation of such information, although considered reasonably
accurate by CSRI at the time of preparation, may prove to be incorrect. The
actual results achieved during the forecast period will vary from the
information provided herein and the variations may be material. Consequently
there is no representation by CSRI that actual results achieved during the
forecast period will be the same in whole or in part as those forecast.

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