ENT Entrec Corporation

ENTREC Corporation (TSX VENTURE:ENT) ("ENTREC") is pleased to announce that it
has signed an option to purchase a 10 acre property (the "Property") in Fort
McMurray, Alberta, such option being exercisable at any time following the
receipt of regulatory approval to the subdivision of the Property from the 27
acre parcel of land in which it is currently included. Once regulatory approval
to that subdivision is received and the option is exercised, ENTREC intends to
build a shop and office on the Property to support its Fort McMurray operations.
This will allow ENTREC to significantly expand its Fort McMurray foot print and
provide a base from which to significantly grow its on-site crane and heavy haul
transportation services in the Fort McMurray region. 


Perras Industrial Park Ltd. ("PIPL"), a non-arms length party, acquired from an
arm's length vendor (the "Original Vendor") a 27 acre parcel of land in Fort
McMurray for $850,000 per acre and subsequently gave ENTREC the option to
purchase the Property for the same price per acre ($850,000 per acre). ENTREC
has paid an initial deposit (the "Initial Deposit") to PIPL of $3,500,000 and
will pay a further $5,000,000 upon the exercise of the option to purchase the
Property. 


If regulatory approval to the subdivision of the Property from the 27 acre
parcel of land in which it is currently included is not received within 24
months, then the option to purchase contemplates that ENTREC will enter a long
term lease agreement with PIPL at market rates to be negotiated by the parties
(with resort to arbitration if no agreement is reached) and with the Initial
Deposit to be credited as pre-paid rent under the long term lease.


Until either (a) the option to purchase the Property is exercised or (b)
regulatory approval to the subdivision of the Property from the 27 acre parcel
of land in which it is currently included is not received within 24 months and
ENTREC enters a long term lease agreement with PIPL, ENTREC will rent the
Property from PIPL on a month to month basis for rent of $20,833.33 per month
and use the site to store equipment used in its Fort McMurray operations.


Each of Rod Marlin, one of ENTREC's directors and officers, and Glen Fleming,
also one of its officers, owns 20% of the shares of PIPL. Therefore the
transaction is technically a related party transaction under Multilateral
Instrument 61-101 adopted by the Ontario Securities Commission. However, the
purchase price for the Property, if the option to purchase is exercised, will be
identical to the purchase price paid by PIPL to the Original Vendor for the
Property. Further, any rent or other lease payments from ENTREC to PIPL will be
on commercially reasonable terms. For the transaction, ENTREC is relying on the
exemptions contained in sections 5.5(a) and 5.7(a), respectively, of
Multilateral Instrument 61-101 from the valuation and minority shareholder
requirements of that instrument as they apply to related party transactions
since the fair market value of the Property is significantly less than 25% of
ENTREC's market capitalization.


Reader Advisory

ENTREC will only be able to exercise its option to purchase the Property
following the receipt of regulatory approval to the subdivision of the Property
from the 27 acre parcel of land in which it is currently included and, while
such regulatory approval is anticipated to be received on favourable terms and
conditions, there can be no assurance that such regulatory approval will be
obtained or that it will be obtained on favourable terms and conditions. Also,
it is expected that PIPL will finance a significant portion of its original
acquisition of the lands with a vendor take-back financing and that the Original
Vendor will register its interest in the entire 27 acre parcel of land as
security for the vendor take-back financing. If approval to the subdivision of
the lands is not obtained and if PIPL defaults on its obligations to the
Original Vendor, ENTREC will have the option of purchasing the balance of the 27
acres from PIPL subject to the vendor take-back financing of the Original
Vendor. If ENTREC does not exercise that option, the Original Vendor may enforce
its security interest on the lands, including the Property leased by ENTREC. 


About ENTREC

ENTREC specializes in the lifting, transportation (over the road and on-site),
loading, off-loading and setting of overweight and oversized cargo for the oil
and gas, construction, petrochemical, mining and power generation industries.
The common shares of ENTREC trade on the TSX Venture Exchange under the trading
symbol "ENT". 


Forward-looking statements

This press release contains forward-looking statements that reflect ENTREC's
current beliefs and that are based on information currently available to ENTREC
including statements relating to: (i) ENTREC either exercising its option to
purchase the Property or entering into a long term lease for the Property; and
(ii) the building of a shop on the lands to house ENTREC's Fort McMurray
operations. These statements require ENTREC to make assumptions it believes are
reasonable but, as a result of such assumptions, such forward-looking statements
are subject to inherent risks and uncertainties. Actual results and developments
may differ materially from the results and developments discussed in the
forward-looking statements as certain of these risks and uncertainties are
beyond ENTREC's control. The assumptions made by ENTREC in making the statements
relating to the building of a shop on the Property include, but are not limited
to, the following: (i) regulatory approval to the subdivision of the Property
from the 27 acre parcel of land in which it is currently included will be
received; (ii) ENTREC will exercise its option to purchase the Property; and
(iii) ENTREC will receive any debt financings required to complete the
acquisition of the Property, make future required payments or to build the shop.
The risks associated with the forward looking statements include the following:
(i) those identified under the "Reader Advisory" above; (ii) all required
regulatory approvals will not be obtained or will not be obtained on terms and
conditions anticipated by or favourable to ENTREC; and (iii) ENTREC will not be
able to obtain debt financing on acceptable terms. Although ENTREC believes that
the expectations and assumptions on which such forward-looking statements are
based are reasonable, undue reliance should not be placed on the forward-looking
statements because ENTREC can give no assurance that they will prove to be
correct. Readers are cautioned not to place undue reliance on these
forward-looking statements, which are given as of the date hereof, and to not
use such forward-looking statements for anything other than their intended
purpose. ENTREC undertakes no obligation to update publicly or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by law.

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