Mr. Bilal Bhamji reports

CAPITAL CONSOLIDATION: THREE OLD FOR 1 NEW

Subject to regulatory approval, TGX Energy & Resources Inc.'s board has resolved to consolidate the company's shares on a one-new-for-three-old basis such that the current 33,577,353 will be consolidated into approximately 11,192,451 shares, subject to rounding. The exact number of outstanding shares after the consolidation will vary based on the elimination of fractional shares.

The consolidation is subject to approval by the TSX Venture Exchange. The primary reason for the consolidation is that the company believes a higher share price may broaden TGX's appeal to a larger range of investors. The company's name and trading symbols will remain unchanged.

If the consolidation is accepted by the exchange, the company's shares will commence trading on a postconsolidated basis on a date to be determined in consultation with the exchange, which date will be announced in a subsequent news release. Upon completion of the consolidation, a letter of transmittal will be sent by mail to registered shareholders advising that the consolidation has taken effect and instructing registered shareholders to take action to exchange their share certificates. The letter of transmittal will contain instructions on how registered shareholders can exchange their share certificates. Beneficial shareholders who hold their shares through a broker or other intermediary and do not have shares registered in their own names will not be required to take any action to exchange their share certificates.

We seek Safe Harbor.