TORONTO, ONTARIO, Apr 14 (MARKET WIRE) --
United Reef Limited (TSX VENTURE: URP)(CNQ: URPL) ("United Reef") is
pleased to announce that it has entered into a definitive option
agreement (the "Agreement") to acquire a 50% interest in five unpatented
mining claims, consisting of 70 claim units which cover approximately
1,120 ha (11.2 km2) (the "McFauld's Lake Claims") in the McFauld's Lake
area of the James Bay Lowlands, northwestern Ontario. The McFauld's Lake
Claims are presently owned by Canstar Resources Inc. ("Canstar") (TSX
VENTURE: ROX) and Geocanex Limited ("Geocanex"), a private Ontario
company (collectively the "Optionors").

    McFauld's Lake Claims

    The McFauld's Lake Claims are located in the heart of the most active
on-going base metals exploration campaign in Canada at the present time.
The property is contiguous to the southeast boundary of the Spider
Resources/KWG Resources property where high grade
zinc-copper-silver-lead-gold mineralization was first discovered in 2003.
Noront Resources' Eagle One Ni-Cu-PGM discovery is located 20 km to the
west where Noront has reported high-grade assay results for base and
precious metals over significant intersections to date.

    Past exploration on the McFauld's Lake Claims includes an airborne
electromagnetic (AEM) and magnetic survey carried out by Spider/KWG in
the summer of 2003; ground magnetic and TDEM (time domain
electromagnetic) surveys in spring 2004; and a recent AeroTEM survey
commissioned by several companies in the area in late 2007. The
geophysical surveys independently confirm the presence of several
drill-ready EM conductors on the group of claims. The Optionors have
provided United Reef with a preliminary interpretation map and data for
the 2007 AeroTEM survey results prepared by Scott Hogg & Associates Ltd.
as they await a final report.

    Michael Coulter, President of United Reef said "We are very pleased to
have the opportunity to participate in this project with drill-ready
targets and to be associated with the Canstar group who are one of the
early and experienced participants in the McFauld's Lake area. The
project compliments our efforts to focus United Reef on base and precious
metal exploration in Canada."

    A location map of the McFauld's Lake Claims is available on request to
United Reef or by accessing Canstar's website at www.canstarresources.com.

    The Optionors have granted United Reef the right and option, subject to
regulatory approval, to acquire a 50% interest in the McFauld's Lake
Claims on the following terms and conditions:

    (a) United Reef will fund exploration work on the McFauld's Lake Claims
in the total amount of $150,000 by December 31, 2008;

    (b) United Reef will issue to Geocanex a total of five million
(5,000,000) fully-paid and non-assessable common shares of United Reef
within ten (10) days of receipt of regulatory approval;

    (c) United Reef will pay Canstar the sum of $50,000 within ten (10) days
of receipt of regulatory approval; and

    (d) United Reef will grant a 0.5% net smelter royalty to each of Canstar
and Geocanex subject to United Reef's right to purchase one-quarter
(0.25%) of the royalty from each party for $250,000.

    Upon United Reef satisfying the above terms and conditions, it will vest
a 50% interest in the McFauld's Lake Claims and an industry standard
joint venture will be formed with Canstar who will hold the other 50%
interest in the property. Thereafter property expenditures will be funded
on a pro rata basis for approved programs with United Reef acting as the
initial operator.

    The transaction is subject to receipt of regulatory approvals and the
closing of the private placement referred to below, on or before April
30, 2008.

    Private Placement

    United Reef has negotiated, subject to regulatory approvals, the terms of
a non-brokered private placement of 3,750,000 Units at a price of $0.08
per Unit for proceeds of $300,000. The Units are to be issued on a
flow-through basis and a non-flow-through basis of which 50% is
flow-through and 50% is non-flow-through. Each Non-Flow-Through Unit
consists of one (1) Common Share and one common share purchase warrant
("Warrant"). Each Flow-Through Unit will consist of one (1) Common Share
and one-half of one Warrant. Each full Warrant will entitle the holder to
acquire a common share at $0.12 for a period of 24 months following
closing. The proceeds of the private placement will be used to fund the
property payment of $50,000 to Canstar and exploration programs on the
McFauld's Lake Claims of $150,000, referred to above, and the balance for
general corporate purposes.

    All of the United Reef common shares proposed to be issued pursuant to
the Agreement and private placement referred to above, will be subject to
a regulatory re-sale restriction of four months after the date of
issuance. Geocanex has agreed that 2,500,000 of the 5,000,000 shares to
be issued to it will be subject to a further re-sale restriction expiring
on December 31, 2008, which is otherwise on the same terms as the
regulatory re-sale restriction.

    The private placement referred to above is part of a larger private
placement currently being offered by United Reef to raise a total of up
to $800,000 on the same terms. The additional $500,000 will be used to
fund further exploration on United Reef's wholly owned Hants County, Nova
Scotia base metal project and for general corporate purposes.

    Shares issued: 65,960,980

    Fully diluted: 72,035,980



TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.

Contacts:
United Reef Limited
Michael Coulter
President
(416) 368-3332

United Reef Limited
Gary Nassif
Exploration Manager
(416) 368-3332
(416) 322-2877 (FAX)
Email: info@unitedreef.com
Website: www.unitedreef.com

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