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Capital Hill Acquires Interest in 300 Million Barrel Oil Bid

Posted on: Monday, 25 July 2005, 18:01 CDT

Capital Hill Gold, Inc. (OTCBB:CHGI) reports that the Company has acquired an interest as technical partner on a 300 million barrel bid for petroleum and natural gas in Nigeria. The bid has been submitted and accepted in Nigeria's 2005 round of offshore concession auctions, with bid awards scheduled for September 24, 2005. Nigeria is the tenth largest oil producer in the world and 11th in natural gas reserves. Currently, major oil companies including Shell, ExxonMobil, ChevronTexaco and Conoco Phillips are producing and developing in Nigeria. Capital Hill's bidding partners include three Nigerian partners with experience and contacts in Nigeria. Most of Nigeria's crude oil production, comprising 10 major crude streams (including condensate), is light sweet crude, API grades 21-45, with a low sulphur content. Nigeria's marker crudes on the International oil market are Bonny Light and Forcados.

Capital Hill intends to acquire additional petroleum rights in Nigeria in conjunction with its local partners. Terms of the joint venture agreement with Capital Hill's development consultant, UJIMA Energy Corporation, call for the issuance of 10 million shares of restricted stock and addition restricted shares as the join venture develops, with up to 49% interest in the company to be issued upon Capital Hill acquiring rights to reserves of 1 billion barrels of oil or their caloric equivalent in natural gas.

About The Company

Capital Hill Gold's strategic objective is to obtain controlling interests in petroleum, uranium and other strategic and precious metal properties with excellent exploration potential for economically significant to world-class ore deposits. CHGI has acquired rights to several mineral exploration properties with uranium, gold and silver, and is actively negotiating for the acquisition of additional properties.

On behalf of Capital Hill Gold, Inc.

Dan Enright, President

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

Source: Business Wire

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