The system's new improvements were further demonstrated by the successful use of salt water as the exclusive feedstock without requiring added consumables or external power inputs.

Toronto; 08 May 2013 -- Phoenix Canada Oil Company Limited (TSXV: PCO & OTC BB: PHXCF) today announced successful demonstrations of its advanced Hydrogen generation reactor design. The Company's latest pre-commercial Hydrogen production system prototype cost effectively optimizes continuous production with sharply increasing efficiencies without employing consumables nor external power for neutralizing the produced Hydrogen ions. The advanced reactor design is considered a major improvement in the system's economic viability for early prospective commercialization of the Phoenix Hydrogen production technology. The system's new improvements were further demonstrated by the successful use of salt water as the exclusive feedstock without requiring added consumables or external power inputs.

The generated Hydrogen can be compounded with carbon to provide a low to nil pollution alternative to conventional liquid transportation fuels, including jet fuel and kerosene, automotive gasoline, and for diesel operated trucks, railcars and shipping vessels. A primary market for the Hydrogen generated in-house will be in compounding with carbon derived from coal-fired power plant emissions which, in North America alone, annually generate more than 2 billion tons of carbon dioxide, with each ton containing about 660 pounds of capturable carbon.

Don Moore, Phoenix CEO, further states that "World oil consumption now exceeds 88-million barrels per day. Each new billion barrel oil discovery, a rare event, therefore covers less than 12 days of current world oil use. Nor do the widely publicized shale oil and gas resources provide an answer. Tight shale rock reservoirs inherently have low porosity and permeability, resulting in limited reserves (including some of the best shale reservoirs; as the Eagle Ford of Texas and Bakken of North Dakota). Several major shale fields are already experiencing annual production decline rates of up to 42% -- requiring continual multi-billion dollar drilling programs to maintain their declining production. Logically, the Phoenix Hydrogen gas energy alternative may well be essential for the survival of our mobile civilization, as we now know it."

Phoenix Energy Technologies:

With exclusive control of its proprietary Hydrogen production technologies, the Phoenix efforts will include the compounding of Hydrogen with captured carbon emissions. Both components, deriving from widely available sources, yield conventional liquid transportation fuel equivalents ranging from light-end jet fuel and kerosene, to mid-range gasoline, and through heavy-end diesel oil products. These conventional liquid fuels can then employ, without modification, the long-established, multi-trillion dollar transportation and distribution infrastructure. Phoenix projects a leading role in the future "Hydrogen Economy" through its control of the proprietary technology covering the light-powered generation of low cost Hydrogen gas from ordinary water (and including salt water) feedstocks.