Mr. Dean Callaway reports

SONORO ENERGY ANNOUNCES DEBT CONVERSION AND SETTLEMENT

Sonoro Energy Ltd. has reached an agreement with Ezekiel Energy Ltd. to convert approximately $250,000 of debt, consisting of a loan and accrued interest, into common shares of the corporation at a price of six cents per share. The 4,166,667 shares to be issued pursuant to the debt conversion will be subject to a hold period expiring four months and one day after the date of issuance. Following the issuance of the shares, the creditor will hold 4,166,667 shares, or approximately 1.78 per cent of the total issued and outstanding shares.

Further, the creditor has agreed to forgive the balance of the amounts due from the corporation. Pursuant to the terms of the debt settlement, the creditor will forgive an aggregate of approximately $1.25-million.

The transactions are designed to improve the financial condition of the corporation. The corporation has insufficient cash on hand and no immediate source of cash that would be sufficient to satisfy the debts described above. No new control person (as defined under the applicable policies of the TSX Venture Exchange) will be created pursuant to the transactions. The board of directors of the corporation considers the terms of the transactions to be fair and reasonable to the corporation, having regard to its current circumstances. The TSX Venture Exchange has reviewed the transaction and will need to provide final approval as per policy requirements.

We seek Safe Harbor.