Covenant Resources Announcing Signing of LOI for Acquisition of Oil and Gas Properties

Mr. Frank Port, President and CEO of Covenant Resources Ltd. (the "Company") wishes to announce the signing of a Letter of Intent ("LOI") with Damont Energy Inc. for the acquisition of oil and gas leases in Montana.

The LOI outlines the terms of the acquisition of all of Damont's right, title and interest in 41,500 net acres of oil and gas leases in "The SweetGrass Arch" Prospect located in Toole and Pondera Counties, Montana. The cost of the acquisition will be approximately $3.8 million, based on the issuance of approximately 19,000,000 shares of Covenant at a deemed price of $0.20 per share. Upon completion of due diligence and final negotiations, a definitive purchase agreement will later be entered into.

The Company is a junior natural resource exploration company focused on the acquisition, exploration, and development of economically viable natural resources. The Company continues to seek additional natural resource opportunities including properties that may lead to oil and gas exploration or any other opportunities that may fall under "natural resources" sector.

The Company Trades on the CNSX under the trading symbol "CVA".

The CNSX does not accept responsibility for the adequacy or accuracy of this news release.

For more information, please refer to the Company's prospectus and engineering report available on SEDAR (www.sedar.com).

For further information contact:
Frank Port
President, Chief Executive Officer, and Director
604-805-9999

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
www.covenantresources.com