Transeuro Commences Legal Proceedings Against High Arctic Energy Service

Transeuro Energy Corp. ("Transeuro”) (TSX VENTURE: TSU) announces that it has today filed in the Supreme Court of British Columbia a statement of claim commencing legal proceedings against High Arctic Energy Service LLC ("High Arctic”), a Dubai based wholly-owned subsidiary of High Arctic Energy Services Trust of Red Deer, Alberta. High Arctic Energy Services Trust is a trust formed under the laws of Alberta, the units of which are listed for trading on the Toronto Stock Exchange. According to the legal action, High Arctic breached the integrated project management agreement (the "IPM Agreement”) dated August 1, 2005 entered into between Transeuro and High Arctic. In carrying out its IPM engagement, the claim states, High Arctic incurred cost overruns which significantly exceeded amounts High Arctic had planned and budgeted and Transeuro had agreed to. The claim further states that Transeuro had initiated discussions with High Arctic to resolve the matter, however, without any notice to Transeuro, High Arctic arbitrarily denied access to Transeuro’s Dubai office and, in breach of the IPM Agreement, took possession of personal and corporate property, and confidential information owned by Transeuro. As a result, the claim continues, Transeuro has been obliged to initiate proceedings against High Arctic and Transeuro’s Board will create an Independent Litigation Committee to address matters related to the litigation. The legal action seeks damages, declarations and injunctive relief including the return of property and confidential information it claims is presently being held by High Arctic. Hal Hemmerich, Transeuro’s President, stated, "It is unfortunate that Transeuro has had to initiate formal legal proceedings against High Arctic, however we were left with little choice in order to protect Transeuro’s interests. We intend to pursue this claim vigorously.” On behalf of the Board of Directors "Hal Hemmerich”, President http://www.TRANSEUROENERGY.COM The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of the content of this news release.