June 12, 1998

Press Release

MMRL SELLS NON-CORE CANADIAN ASSETS

Morrison Middlefield Resources Limited ("MMRL") has completed the sale of certain of its Canadian oil and natural gas properties for $17.3 million. The properties, located primarily in the Gilby and Niton/Shiningbank areas of Alberta, currently produce about 335 bbls/d of liquids and 6.4 mmcf/d of natural gas.

This sale is part of MMRL’s continuing strategy to liquidate its non-core Canadian properties so that the Company can focus on its exploration and development activities in the UK which offer more upside potential.

The common shares of the company are listed on the Toronto Stock Exchange (TSE) under the symbol MM.

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