Candax Energy Inc CXEYF

RE: NEWS IS OUT

[Malahat]

Candax Energy Provides Drilling Update Toronto, Ontario, Canada -- March 7, 2006 -- Further to the Company’s news release of February 20, 2006, Candax Energy Inc. (“Candax”) [TSX: CAX] announces a drilling update for its exploration and re-development programs in Tunisia. The onshore Chaal-1 exploration well, which spud February 4th, is currently below 2,500 metres and drilling ahead to planned total depth of 4,500 metres. The Chaal-1 well is expected to take a total of 50 days to drill and log, and is currently on track for the test program to commence early April. Simultaneously, Candax announces that it anticipates mobilization of the drilling rig for the re-development of its offshore El-Bibane field to occur early in April. Candax Management are working closely with the contractor regarding the resolution of fabrication delays for the jack-up barge. The current status is that the drilling rig has been installed on the jack-up barge, which is being upgraded in order to strengthen the barge to accommodate the larger rig required for the horizontal drilling program. Candax Management is having regular meetings with the drilling contractor senior management to ensure that the contractor achieves as rapid a completion of the rig upgrade as possible and to ensure final fabrication will meet safety certification requirements. Michael Wood, President & CEO, commented: “The Candax team is pleased that drilling on our high-impact Chaal-1 well is proceeding according to plan. This multi-Tcf prospect is exposing our investors to very significant upside. We are also pleased that our participation on site with our contractor has provided us with greater confidence that mobilization for El-Bibane should occur early in April.”