TORONTO--(MARKET WIRE)--May 12, 2008 -- Cannon Exploration Inc. (Other OTC:CNEX.PK - News) is pleased to announce that it has entered into a Letter of Intent (LOI) agreement with IPMG Inc., an Ontario mineral resource exploration company, whereby IPMG has agreed to grant to Cannon Exploration Inc. an option to purchase up to 100% interest in the old "Queen Alexandria" gold mine, located in Northern Ontario.

The transaction is subject to a number of terms and conditions, including but not limited to, completion of satisfactory due diligence and the execution of a definitive option agreement.

About Cannon:

Cannon Exploration is positioning itself to emerge as a pre-eminent resource exploration company in the North American mining industry, and particularly properties located in preferred mining districts in Canada.

Forward-Looking Statements: The statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including but not limited to, the effect of economic conditions, the impact of competition, the results of financing efforts, changes in consumers' preferences and trends. The words "estimate," "possible," and "seeking" and similar expressions identify forward-looking statements, which speak only to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, because of new information, future events, or otherwise. Future events and actual results may differ materially from those set forth herein, contemplated by, or underlying the forward-looking statements.

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