North Peace Prices Offering



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE
    A VIOLATION OF U.S. SECURITIES LAW./

    TSX-V: NPE

    CALGARY, July 24 /CNW/ - North Peace Energy Corp. ("North Peace" or the
"Company") is pleased to announce that it is proceeding with its private
placement financing announced June 5, 2008 on the following terms.
    North Peace has engaged GMP Securities L.P. ("GMP") as lead agent of a
syndicate of agents which includes TD Securities Inc., Blackmont Capital Inc.,
Canaccord Capital Corporation and Raymond James Ltd. to sell on private
placement, "commercially reasonable efforts" basis, units ("Units") of the
Company and flow-through common shares ("Flow-Through Shares") of the Company
(the "Offering"). The Aggregate gross proceeds of the Offering are expected to
be up to $25,000,000 and the Flow-Through Shares may consist of up to
$5,000,000 of the Offering.
    Units will be issued at a price of $1.50 per Unit. Each Unit consists of
one common share and one half of one common share purchase warrant of the
Company, each whole common share purchase warrant entitles the holder to
acquire one common share of the Company at a price of $2.00 per share for a
period of 18 months from the closing date of the private placement. In
addition, North Peace will issue Flow-Through Shares at a price of $1.65 per
Flow-Through Share.
    Completion of the Offering is subject to receipt of all applicable
regulatory approvals. The Offering is expected to close on or about August 7,
2008. The securities issued pursuant to the Offering will be subject to a
four-month hold period from the date of closing.
    The majority of the proceeds from the Offering will be used by the
Company to fully fund all costs associated with the CSS pilot project
including the acquisition of capital equipment, construction costs and the
drilling of two horizontal CSS wells. The remaining funds will be used to: (i)
complete the 2008/2009 eight well winter delineation drilling program, (ii) to
advance engineering and environmental baseline work for the commercial CSS
project, and (iii) for general corporate purposes.

    About North Peace

    North Peace has an in situ oil sands project in northern Alberta with
86,400 acres of nearly contiguous leases bridging the Peace River and
Athabasca oil sands areas.

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

    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
securities offered have not 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 in the United States except in
certain transactions exempt from the registration requirements of the U.S.
Securities Act and applicable states securities laws.





For further information:

For further information: Louis Dufresne, President and CEO; James
Glessing, Vice President, Finance & CFO, North Peace Energy Corp., 470, 505 -
3rd Street SW, Calgary, Alberta, T2P 3E6, Telephone (403) 262-6024, Facsimile:
(403) 262-6072, E-mail: info@northpec.com, www.northpec.com

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NORTH PEACE ENERGY CORP.

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