Northern Sun Exploration Company Inc. (the “Company”) announces that on August 1, 2008 it filed a

Notice of Intention to make a Proposal pursuant to the provisions of the

Bankruptcy & Insolvency Act

("BIA"). The company is currently under BIA protection while it attempts to restructure its

current creditor obligations. The Company will continue to operate in the normal course of business as

it makes a proposal to its creditors.

Furthermore, the Company reports that SemCanada Energy Company, the Company’s gas marketer

has filed for protection under the Companies Creditor Arrangement Act. Northern Sun estimates

approximately $208,000 of production revenue is currently exposed, and the Company has taken what

it believes are the necessary steps to mitigate the potential for any further loss or delay in future

production payments. .

The Company would also like to report that its relationship and agreement with the Ka’a’gee Tu First

Nation in the North West Territories remains a critical component to the future of the Company. The

Company continues to work with its partner to crystallize a land access component which will

ultimately provide access to the oil and gas resources on their several million acres of land.