Texada Provides Update on Qualifying Transaction and South American Oil and Gas Concession Interests

February 20, 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 8, 2008) - Texada Capital Corp. (TSX VENTURE:TXC.P) (the "Company") wishes to provide an update on its Qualifying Transaction previously announced on December 17, 2007.

During January 2008, the Company's proposed Brazilian operating subsidiary, Petro Latina do Brasil Exploracao e Producao de Petroleo e Gas Natural Ltda, signed Joint Operating and Participation Agreements with BrazAlta Resources Corp., W. Washington Empreendimentos e Participacoes Ltd. and W. Washington Petroleo S.A. to acquire working interests in 16 hydrocarbon exploration blocks with a gross area of 432 sq km in the Reconcavo and Sergipe Alagoas Basins, onshore Brazil. Following approval of the Company's Qualifying Transaction, the Company's 2008 exploration work program will include multiple drilling prospects as well as 3D and 2D seismic acquisition and reprocessing on these blocks.

The Company has filed for Exchange conditional acceptance of its Qualifying Transaction and has filed an independent technical report on its initial qualifying property being Block 235 in the Reconcavo Basin. The Company is currently marketing a private placement of 10,000,000 units at an expected price of C$1.00 per unit to raise gross proceeds of C$10,000,000. Each unit will consist of one share of common stock and one half of a warrant which will allow the holder to purchase an additional share of stock at an expected price of C$1.35. The proceeds from this placement will be used to aggressively pursue development of the Company's onshore Brazilian assets and to advance two highly prospective production opportunities that the Company is currently securing in shallow offshore Brazil and the Llanos Basin of Colombia.

Brazil Projects

The Company's strategy in Brazil is to build a base of low risk, low cost production and exploration drilling opportunities focused on two areas of onshore Brazil while pursuing additional acreage in high potential, shallow water offshore areas in the Santos and Campos Basins. The Company is targeting these shallow water areas specifically where it can leverage its in-house geotechnical strengths and new play concepts to capture significant upside in overlooked or under explored areas.

In Brazil, the onshore Reconcavo and Sergipe Basins are among the most prolific and have been extensively developed by Petrobras since the 1950's. The majority of the Company's acreage is adjacent to these known oil fields and proven areas.

During the recent bid round in November 2007, a consortium including the Company was awarded Block 170 in the Reconcavo Basin. Block 170 is adjacent to the large Miranga Oil field (Petrobras) having over 814 million barrels of oil equivalent (MMBOE) in place according to Agency National Petroleum (source: Agencia Nacional o Petroleo - Bid Round 9 Data Package, October 2007). Texada will hold a 25% working interest with partners Brazalta Resources, W. Washington Petroleo Ltda. (Operator) and Brownstone Ventures. A minimum signature bonus was bid with one well to be drilled over the next two years. Drilling in this block is planned for 2009.

As part of the obligation to earn its interest in the 16 blocks in the Reconcavo and Sergipe Alagoas areas, the Company participated in the drilling of a well OGE 235-1 in Block 235 Reconcavo Basin. Prior to Texada's participation, the working group had previously permitted and spudded a well in order to fulfill its remaining contractual obligations within required timeframes. This well found high quality reservoir sands in both the Sergei (20 meters thick having 18-24% porosity) and Agua Grande (8 meters thick and 27% porosity) formations but does not appear to have economic hydrocarbon potential at this time. The Company and its partners are evaluating this hole and other prospects on Block 235. Three additional and more prospective drilling locations in Block 235 have been subsequently identified using the Company's geotechnical staff. Subject to approval of the ANP, a work program to evaluate these prospects will be added to the current exploration work program. An independent technical report by Petrotech Engineering Ltd. on Block 235 estimates a gross resource of 3.761 million barrels of oil (MMBO) with a net present value net to the Company of $17,973,000 discounted at 10% for these three prospects the basis for which is described in an independent technical report prepared in accordance with National Instrument 51-101 prepared by Petrotech Engineering Ltd. dated October 31, 2007 and entitled "Evaluation of the Interests of Texada Capital Corp. in Block 235 in the Reconcavo Basin, onshore Brazil". The report is a prospective resources report. Prospective resources are those quantities of oil and gas estimated on a given date to be potentially recoverable from undiscovered accumulations. If discovered, they would be technically and economically viable to recover; and there is no certainty that the prospective resource will be discovered. If discovered, there is no certainty that any discovery will be technically or economically viable to produce. Each well is estimated to cost a net US$997,500 to the Company to drill and complete.

Brazil - offshore

The Company has also executed a Letter Agreement to acquire a net 30% working interest in a shallow water exploration and production property in the Sergipe Alagoas Basin. Upon completion of this transaction, the Company would acquire immediate initial production and cash flow to the Company. The single well is currently producing from one zone at a monthly average rate of net 88 barrels of oil per day (BOPD) (source: TDC Engineering Ltd. / Petrobras - daily production reports January 2008). The proposed work program on this property calls for a sidetracking and re-completion of additional zones of interest in two wells. This work is expected to increase production to the Company within 90-120 days of completion of this acquisition. The Company is completing its due diligence and will provide additional information on this opportunity as it becomes available.

Colombia

Texada is also currently pursuing additional production exploitation and exploration properties in the high potential basins of Colombia. Currently three such properties have been initially screened and are under detailed evaluation and initial discussions. All prospects in these areas have proven analogues and represent significant upside potential. The most mature opportunity is located in the Llanos Basin with several prospects in the block the largest and most prospective has reserve estimates of 6-20 MMBO based on nearby field analogs (for instance the La Punta Block 2244 oil field, Llanos Basin, historic production 2 MMBO with total recoverable field reserves estimated between 6-9 MMBO and the Chicuaco Block, Llanos Basin with unrisked recoverable resource of 5-20 MMBO - Baraka Petroleum Limited. ASX Quarterly Report January 30, 2008). Potential reservoir sands are high quality with field analog wells in the area producing 1,350 BOPD of 37 degree API oil (La Punta Well, Mirador Formation, Llanos Basin - Baraka Petroleum Limited, ASX Quarterly Report January 30, 2008). The property includes a potential discovery well based on electric log interpretation that will be either re-entered or twinned to confirm. The Company is completing negotiations on these properties and will provide additional information on this opportunity as it becomes available.

Board Update

On January 4, 2008 the Company held its AGM. At this meeting the new board of Texada was appointed. This board comprises seasoned professionals with relevant successes building oil and gas companies both in South America and globally. The Board of the Company now includes the following persons:

Read B. Taylor (President and Chief Executive Officer and Director)

Read B. Taylor has worked in increasingly responsible management positions in the energy business around the world for over 26 years. He has served with such notable companies as UNOCAL, Anadarko and recently Devon Energy. His experience includes geologic and geophysical interpretation as a team member and leader for exploration and development projects, management roles in commercial and negotiations, gas marketing and business development including successful new ventures and acquisitions. Within this global experience base, he has worked closely with service, technology, and joint venture companies as well as host country government and regulatory agencies. Most recently, Mr. Taylor successfully acted as General Manager and President of Devon Energy do Brasil Ltda., building Devon's portfolio of exploration and development acreage culminating in the recently announced production start-up of a significant offshore oil discovery, Polvo field Campos Basin estimated at 60,000 BOPD and over 100 MMBO field size.

Keith Hill (Director)

Keith Hill is currently the President and CEO of Pearl Exploration and Production Ltd., a company focused on heavy oil development in North America, and Chairman of Bayou Bend Petroleum, a company focused on gas exploration in the Gulf of Mexico. He was formerly the founder, President and CEO of Valkyries Petroleum Corp., an oil and gas company focused in Russia, which he led through a highly successful takeover. Mr. Hill has over 22 years of experience in the oil industry, including senior management positions and international new venture and exploration management at Talisman Energy, Lundin Oil AB, Occidental Petroleum Corporation and Shell Oil Company. Mr. Hill holds a B.Sc. in Geophysics and a M.Sc. in Geology from Michigan State University, as well as an M.B.A. in International Business and Finance from the University of St. Thomas in Houston, Texas.

Ian Baron (Director)

Ian Baron is a founding partner in ESG Dubai, a firm providing management advisory services to the oil & gas industry. Since 2002, he has advised clients in the acquisition and operation of projects in several countries including Kazakhstan, Russia, Iran, Syria, the Philippines, Azerbaijan, Kuwait and Turkey. His prior experience includes acting as the CEO of Dragon Oil plc (LSE:DGO), and acting as the Vice President and General Manager of the operations of Conoco Inc. based in Dubai, United Arab Emirates, as well as its Middle East expert in Houston, Texas. Mr. Baron also holds the position of Vice President, Exploration and Production, of Sky Petroleum Inc. a US-based oil and gas company listed on the NASD Over-the-Counter Bulletin Board with assets located in the Caspian Sea. Mr. Baron holds a B.Sc. (Hons) in Geology from the University of Manchester, England and is a member of the American Association of Petroleum Geologists and the London Geological Society.

Max Pozzoni (Director)

Max Pozzoni is the CFO of True North Energy a US based oil and gas exploration company with assets in Alaska, and has been involved in numerous oil and gas start-ups. Mr. Pozzoni formerly worked with Schlumberger Oilfield Services in the United States and South America. Mr. Pozzoni holds a B.Sc. degree in International Business from the University of Kansas and M.B.A. from the London Business School in England.

Management Update

In addition to Read Taylor as its President and CEO, the Company has acquired two key officers that will enable it to execute its aggressive business plan. In addition to current geotechnical support provided by Rincon Energy, John Nelson has been appointed Vice President and General Manager, Brazil and Steve Benedetti has been appointed Vice President and General Manager, Colombia.

John Nelson has over 20 years of oil Industry experience in geology and geophysics. John was most recently President and Director of Winslow Resources Inc., acquired by DualEx Energy International Inc. in 2007 and is currently a Director of DualEx Energy and Resource and Hunter Capital Corp. Previously John served as Exploration Geologist and Project Manager in numerous worldwide frontier areas for Mobil Oil Corp. Since that time he has founded two private companies providing geophysical services and technology to Canadian based oil and mining companies. John holds a B.Sc. and M.Sc. Degrees in Geology from Michigan State University and is a member of APEGGA, AAPG, CSPG and CSEG.

Steve Benedetti has over 30 years of upstream oil and gas experience in the United States and international locations from Russia to Latin America. Steve was one of the principal architects in transforming Petrominerales Colombia Ltd. (TSX:PMG) from a small explorer with a $3.00 share price to an active producer with a current $16+ share price and market capitalization in excess of $1 billion. As VP of Petrominerales, Steve negotiated over 10 exploration licenses and four Technical Evaluation Agreements (2.1 million acres) through Colombia's National Agency for Hydrocarbons (ANH), directly contributing to the company's proved plus probable reserve increase from 6.8 MMBO in 2003 to 24.5 MMBO in 2006, and production increase from 800 BOPD from year end 2005 to 3,500 BOPD in Q2 2007. Steve received a B.Sc. Degree in Geology from Idaho State University in 1974 and a Master of Science in Geology from Texas Christian University in 1976.

ON BEHALF OF TEXADA CAPITAL CORP.

Read Taylor, President and CEO

This News Release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statements:

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Company's periodic filings with Canadian Securities Regulators. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement except as required by applicable securities laws.

Cautionary Statement:

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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

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