Grand Banks Energy Corporation (the "Company" or "Grand Banks") (TSX
VENTURE:GBE) is pleased to announce its financial results for the first quarter
ended March 31, 2008. The detailed financial statements and management
discussion and analysis for the quarter are accessible on the internet at the
website www.sedar.com.


In the first quarter of 2008 Grand Banks achieved record levels of production,
revenues, funds flow from operations and pre-tax income, all of which are a
testament to the quality of the Company's asset base. The Company's solid
operational performance was further enhanced by record oil prices and strong
natural gas prices.




                                                Three Months ended March 31,
                                            --------------------------------
                                             2008        2007      % Change
                                            ------      ------    ----------
Average Sales Volumes:
------------------------------------                                       
Crude oil & liquids - bbls/day                724         616            18
Natural gas - mcf/day                       4,382       1,056           315
Sales volumes - boe/day (6:1)               1,454         792            84

Financial Results (Canadian $000's)
------------------------------------                                       
Gross revenues                         $    9,726   $   4,124           136
Net income (loss)                      $    1,995   $    (320)          723
  Per share - basic                          0.06       (0.01)          700
  Per share - diluted                        0.06       (0.01)          700
Funds flow from operations (1)         $    5,737   $   1,885           204
  Per share - basic                          0.18        0.06           200
  Per share - diluted                        0.17        0.06           183
Capital expenditures                   $    5,428   $   2,939            85
Working capital (deficiency)           $  (12,227)  $ (10,382)          (18)
Flow-through obligations (to year end) $        -   $   2,864          (100)
Total assets                           $   59,665   $  50,618            18

(1) Funds flow from operations is a non-GAAP measure that represents net
    income plus depletion, depreciation and accretion, stock-based
    compensation, future taxes and other non-cash expenses.



Takeover Bid:

On April 29, 2008, the Company announced it had entered into an agreement with
Fairborne Energy Ltd. ("Fairborne") pursuant to which Fairborne has made an
offer (the "Offer") to acquire all of the issued and outstanding common shares
of the Company by way of a takeover bid. Under the terms of the Offer, Fairborne
will pay $2.90 cash per share and assume the Company's debt for an estimated
purchase price of $112.0 million. The Offer is subject to certain conditions,
including the deposit of not less than 66 2/3% of the outstanding common shares
of the Company (on a fully diluted basis), receipt of regulatory approvals and
other customary conditions.


Having considered the terms of the Offer, the fairness opinion provided by
Rundle Energy Partners Ltd., the advice of its financial and legal advisors and
additional matters, the board of directors of Grand Banks has determined that
the Offer is fair, from a financial point of view, to holders of Grand Banks
common shares and is in the best interest of Grand Banks and its shareholders.
The board of directors has unanimously resolved to recommend that the holders of
Grand Banks common shares accept the Offer and tender their Grand Banks common
shares to the Offer. A Directors' Circular setting out the recommendation of the
board of directors of Grand Banks in relation to the Offer along with the formal
offer documents were mailed to holders of securities of Grand Banks on May 7,
2008.


Shareholders are reminded that the deadline for them to tender their shares to
the Fairborne Offer is June 12, 2008.


Outlook:

Grand Banks has recently commenced a multi-well drilling program on its lands in
the Williston Basin. It is expected that this program, which will utilize two
drilling rigs, will result in strong increases in production and cash flow as
approximately four horizontal oil wells per month are completed.


Grand Banks is listed on the TSX-Venture Exchange under the Symbol GBE.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements including expectations of
future production. These statements are based on current expectations that
involve a number of risks and uncertainties, which could cause actual results to
differ from those anticipated.


BOEs may be misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.


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