OxFracTM proppant technology to help oil and gas operators increase North American natural gas production.

HOUSTON/STAVANGER - (December 11, 2008) Energy Ventures, a venture capital firm specializing in upstream oil and gas technology, announced that it has invested in Oxane Materials Inc., manufacturer of OxFracTM, a highly conductive, ultralight ceramic proppant.

With a superior weight-to-strength ratio, OxFracTM promises to increase oil and gas recoveries, particularly when working in unconventional assets like shale, tight gas, and coal bed methane. OxFracTM is designed to increase effective fracture length, enhance control over created fracture geometry, and reduce the environmental impact of hydraulic fracturing. Commercially available in 2009, modeling suggests OxFracTM could increase initial production by up to 100 percent and shallow production decline by up to 15 percent, improving total recovery while reducing total well cost per play.

"There is significant potential for this product to improve the economics in unconventional oil and gas plays," said Jim Sledzik, investment manager, Energy Ventures. "This technology is going to become increasingly important as the industry looks for ways to increase ultimate recovery and cut drilling and completion costs."

"Oxane is proud to partner with Energy Ventures. Their investment will bring OxFracTM from the lab to the field. Energy Ventures' proven track record as oil and gas focused investors, entrepreneurs and line managers will afford significant value to Oxane," said Chris Coker, president, Oxane Materials.

For further information, please contact:

Jim Sledzik, Investment Manager, Energy Ventures Inc., +1 281 768 6725

Or visit the web site of Oxane Materials Inc. www.oxanematerials.com