Compliance expands MOU with ITOCHU Corporation and LG International Corp.



    TSX-V TRADING SYMBOL: CEC

    VANCOUVER, June 2 /CNW/ - Compliance Energy Corporation (the "Company")
announces that it has expanded the Memorandum of Understanding ("MOU") which
was originally signed with ITOCHU Corporation and LG International Corp. ("the
Parties") on January 31, 2008. The expanded MOU includes additional lands,
outlines specific joint venture participating interests, and increases the
financial consideration. The original MOU, which provided for the development
of the Raven Coal Project encompassing approximately 3100 hectares, has been
expanded to include the Bear Coal Project, and the remainder of the West
Fraser Mills Ltd. ("WFM") option lands on Vancouver Island (hereinafter
collectively called the "Comox Basin Holdings") for a total of approximately
29,000 hectares.
    Under the terms of the expanded MOU, the Parties have agreed to increase
their financial contribution. They will now fund up to $12.0 million to earn a
40% interest in the Comox Basin Holdings subject to the favourable outcome of
ongoing due diligence and the execution of final agreements. Of this total,
$600,000 has already been paid to secure exclusivity. The remaining
$11.4 million will be utilized to fund: a) all the activities necessary to
reach a production decision on the Raven Coal Project including public
consultation, additional drilling, environmental assessment and transportation
studies, and a feasibility study; and b) payments to WFM to secure the
transfer of title to the option lands. The expanded MOU also contemplates that
subject to satisfactory results of the feasibility study the Parties would
provide debt financing for the development of the Raven Coal Project.
    ITOCHU Corporation is a major Japanese trading house and, among other
things, has extensive experience in the development of coal mines and the
marketing and sale of coal globally and has investments in coal mines in
Australia and Indonesia. ITOCHU had annual revenues of $22 billion US and Net
Income of $1.5 billion in the fiscal year ended March 2007.
    LG International Corp. is a leading general trader in Korea with a
worldwide overseas branch network and has abundant experience in coal mining
development and the marketing and sales of coal worldwide. LG International
Corp. has annual revenues of $5.8 billion US and investments in coal mines in
Russia, Australia, and Indonesia.
    The Raven Coal Project located in the Comox Coal Basin of Vancouver
Island, British Columbia has 39,093,000 tonnes of measured and indicated and
59,004,000 tonnes of inferred coal resources as reported in the Company's
Technical Report prepared by O.R. Cullingham Resource Consultant Ltd. (see
press release May 29, 2007). The coal is classified as High Volatile A
Bituminous and would be suitable in a metallurgical coal blend or as a thermal
coal. The Bear Coal Project, which is located 10 kilometers from Raven, is
estimated to hold approximately 8.5 million tonnes of High Volatile A
Bituminous coal resources which exhibit good coking characteristics. This
resource estimate is not 43-101 compliant and readers are cautioned that this
resource estimate should not be relied upon.
    Compliance Energy Corporation's shares trade on the TSX Venture Exchange
under the symbol CEC and investor information is available on the Company's
web page at www.complianceenergy.com.

    On behalf of the Board of
    COMPLIANCE ENERGY CORPORATION

    John Tapics
    Chief Executive Officer

    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.

    Note: This release contains forward-looking statements that involve risks
and uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to the documents, filed by the Company
on SEDAR at www.sedar.com, specifically the most recent reports which identify
important risk factors that could cause actual results to differ from those
contained in the forward-looking statements. The Company undertakes no
obligation to review or confirm analysts' expectations or estimates or to
release publicly any revisions to any forward-looking statements.





For further information:

For further information: Rob Roney, Investor Relations, at (250)
897-0437; or Rod Shier, CFO, at (604) 689-0489

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