PXX Pearl Exploration And Production LT Com Npv

Pearl Exploration and Production Ltd. ("Pearl" or the "Company") (TSX
VENTURE:PXX)(FIRST NORTH:PXXS) announces that the Company has entered into an
agreement to acquire an additional 30% working interest in 3,886 contiguous
hectares of oil sands leases in its Blackrod project, located south of Fort
McMurray, in the Athabasca Oil Sands region of northern Alberta.


The acquisition is expected to close on August 20, 2008. The cost of acquisition
will be paid as follows:


- $4.5 million payment on closing

- $4 million payment on SAGD pilot achieving gross accumulated production of
100,000 Bbls


- $4 million payment on full scale commercial development achieving 5,000 Bbl/d
of production as reported to the Alberta government for the duration of one
month


- $3 million payment on the full scale commercial development achieving 10,000
Bbl/d of production as reported to the Alberta government for the duration of
one month


At December 31, 2007 Pearl's year end reserve report prepared in accordance with
National Instrument 51-101 guidelines by DeGolyer and MacNaughton Canada
Limited, estimated Pearl's 35% working interest share within these leases at
approximately 107 million barrels of possible(i) recoverable oil reserves. Based
on that report, pro-forma this transaction, Pearl's direct working interest of
possible reserves on these leases will now increase to approximately 199 million
barrels. In addition, through its approximate 18% ownership of its joint venture
partner, Serrano Energy Ltd ("Serrano"), Pearl has an additional indirect
ownership of 8% of the project or 19 million barrels of possible oil reserves.


The Company along with Serrano submitted a SAGD pilot proposal to the Alberta
EUB on May 30, 2008. Upon receiving regulatory approval, anticipated in Q1 of
2009, the partners intend to initiate a SAGD single well pair pilot. In
addition, the partners are continuing with their plans to conduct a 10 to 15
core well program in the 2008/2009 winter to further delineate the deposit.


Pearl President and CEO Keith Hill stated, "We are very excited to expand our
interests in this low risk large scale heavy oil property. Blackrod is one of
our four core properties that we believe will propel Pearl into a substantial
heavy oil project development company over the next 24 months."


Pearl Exploration and Production Ltd. is a public company focused on delivering
disciplined growth by establishing a North American portfolio of heavy oil
projects with an emphasis on large resource opportunities. Additional
information on Pearl is available on the Company's website at
www.pearleandp.com.


(i) Possible Reserves are those additional reserves that are less certain to be
recovered than probable reserves. There is only a 10-per-cent probability that
the quantities actually recovered will equal or exceed the sum of the proven
plus probable plus possible reserves.


All references in this release to boe's are based on a 6 to 1 conversion ratio.
Boe's may be misleading, particularly if used in isolation. A boe conversion 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.


Pearl's Certified Advisor on First North is E. Ohman J:or Fondkommission AB.

Forward-looking statements: This document contains statements about expected or
anticipated future events and financial results that are forward-looking in
nature and as a result, are subject to certain risks and uncertainties, such as
general economic, market and business conditions, the regulatory process and
actions, technical issues, new legislation, competitive and general economic
factors and conditions, the uncertainties resulting from potential delays or
changes in plans, the occurrence of unexpected events, and the Company's
capability to execute and implement its future plans. Actual results may differ
materially from those projected by management. For such statements, we claim the
safe harbour for forward-looking statements within the meaning of the Private
Securities Legislation Reform Act of 1995.

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