Toronto, Ontario - Kenartha Oil & Gas Company Limited (Frankfurt Exchange: KJ5), an explorer and developer of natural gas resources, is pleased to announce that its agent is in funding discussions with the Raiffeisen Bank in Europe to move forward on the Brazil hydro-electric projects. The Company has been presented with a proposed credit facility from the Raiffeisen Bank which management has under review.

The Company is in continuing participation negotiation with a private group that currently has site licenses complete with all required approvals and permits to construct two (2) hydro-electric generating stations in Brazil; one of 8MW (PCH Renic project) and the other of 17.5MW (PCH Tamboril project). These two projects are located upriver from a recently completed 28MW generating station constructed on a license owned by the same private group and built under a turnkey contract (see Press Release of Jan 23, 2007).

About Kenartha Oil and Gas Company Limited

Kenartha Oil & Gas Company Limited (Kenartha) is an oil and natural gas exploration, acquisition, development and production firm.

The Company holds interests in natural gas production facilities in southern Ontario, Canada near Canada's first oil wells. Kenartha has sales agreements with Union Gas Limited for the purchase of its natural gas production.

Kenartha is traded on the Frankfurt Exchange under the symbol “KJ5”. For further information please visit the company’s website at kenartha.com.

WARNING: The company relies upon litigation protection for "forward-looking" statements.

Information presented in this newsletter contain 'forward looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be 'forward looking statements.' Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as 'projects', 'foresee', 'expects'', 'will,' 'anticipates,' 'estimates,' 'believes,' 'understands' or that by statements indicating certain actions 'may,' 'could,' or 'might' occur.

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