Press Release - August 22, 2002

PRESS RELEASE FIRST CANADIAN ENERGY LTD.

For Immediate Release
Calgary, Alberta Ð August 22, 2002
TSX Venture Exchange Symbol: FCN
3,400,000 Shares Outstanding

FIRST CANADIAN ENERGY ANNOUNCES SIGNING OF AMALGAMATION AGREEMENT

Further to the press release dated March 7, 2002, First Canadian Energy Ltd. (“First Canadian”) is pleased to announce that it has signed a formal amalgamation agreement with Northern Shield Resources Inc. (“Northern Shield”). The transaction, which will constitute First Canadian's Qualifying Transaction under the policies of the Canadian Venture Exchange (the “Exchange”), was originally structured as a reverse takeover of First Canadian by Northern Shield. The transaction will proceed by way of an amalgamation on the basis of one common share of the amalgamated corporation for each common share of Northern Shield and for each common share of First Canadian. The obligation of First Canadian to complete the amalgamation is subject to certain conditions including approval of the amalgamation by the shareholders of First Canadian and Northern Shield. The amalgamation is also subject to the approval of the Exchange.

First Canadian is also pleased to announce that it has entered into a Member Sponsorship Agreement with Golden Capital Securities Ltd. of Vancouver, B.C. to act as First Canadian's sponsor under the transaction.

For further information, please contact Mr. Raymond Siwiec, President of First Canadian, at (403) 289-5341 or Mr. Ian Bliss, President of Northern Shield, at (613) 232-0459 Ext 1001.

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

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