CALGARY, Feb. 24 /CNW/ - In November of 2006 Canyon issued 125,000 warrants to Frac Rite Services Ltd. as partial payment for the purchase of certain intellectual property described as Light Weight Proppant ("LWP"). Canyon was subsequently awarded a Canadian Patent which applies to any stimulation of any oil or gas well which involves the introduction of any non-metallic proppant at concentrations which create a partial mono-layer, whether in a gas or liquid.

Patents are also pending the in United States and Australia.

To date Canyon has stimulated over 675 wells in western Canada, using our patented process.

Frac Rite continues to provide expertise to enhance the effectiveness of Light Weight Proppant in the stimulation of oil and gas reservoirs and therefore Canyon has agreed to change the vesting terms and exercise price of the warrants previously issued as follows:

a)  The dates the warrants vest shall change from November 8th, 2007,
    November 8th, 2008 and November 8th, 2009 (one-third of the warrants
    issued being exercisable on each date), to February 11th, 2010,
    February 11th, 2011 with the final third exercisable on October 1st,
    2011.
b)  The exercise price shall be reduced from $4.97 per common share to
    $1.20 per common share.

Frac Rite Services Ltd. is not considered an insider of Canyon under the Alberta Securities Act and the transaction described above was negotiated at arms length.

We seek safe harbor.