CANADIAN ENERGY EXPLORATION INC. ANNOUNCES SPUD OF DEVELOPMENT WELL

CALGARY, July 7, 2011 /PRNewswire/ - Canadian Energy Exploration Inc. ("Canadian Energy" or the "Company") (TSX Venture - "XPL") is pleased to announce it has spud a test well CEEI Ceylon 02-18-05-20W2M (the "Well") on lands earned in accordance with a previously announced (October 21, 2010) Seismic Review and Option Agreement dated September 28, 2010 (the "Farmin Agreement") in the Hardy/Minton area of Southeast Saskatchewan.

Pursuant to the terms of the Farmin Agreement, this well is considered an after-earned well and under the Saskatchewan government regulations this is considered a development well due to its proximity to unabandoned wells. This is the first accessible location to the Company on its Hardy lands since early March, 2011 due to saturated soil conditions prevalent throughout S.E. Saskatchewan.

The Well is licenced to a total depth sufficient to drill to 2415 meters however the Company may reduce the drill depth to 1840 metres, sufficient to evaluate the Mississippian formations including the Ratcliffe formation. The estimated cost associated with drilling and casing, completing or abandoning the Well is $750,000.00.

Pursuant to the terms of the Farmin Agreement, if the Company drills three exploratory test wells (completed) plus an additional two option wells, all by August 31, 2011, the Company will earn 100% working interest in the remaining approximately 13,760 acres (21.50) sections. As previously announced (May 26, 2011) the Company controls approximately 34,880 acres (54.50 sections) of which 11 leases comprising 20,000 acres (31.25 sections) expire August 31, 2011 unless a well is drilled to retain each lease. The above mentioned Well will preserve all mineral rights contained in the 2,400 acre (3.75 section) lease to March 31, 2012 but is not considered an option well under the Farmin Agreement.

About Canadian Energy Exploration Inc.

Canadian Energy Exploration Inc. is a junior oil and gas company engaged in the exploration for and development and production of oil and natural gas reserves in Western Canada.  The Company's common shares trade on the TSX Venture Exchange under the symbol "XPL".

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Advisory

Certain statements and information contained in this press release, including but not limited to statements regarding the use of proceeds contain forward-looking statements.  All statements other than statements of historical fact may be forward looking statements.  These statements, by their nature, are subject to numerous risks and uncertainties, some of which are beyond Canadian Energy's control including the effect of general economic conditions, industry conditions, changes in regulatory and taxation regimes, volatility of commodity prices, escalation of operating and capital costs, currency fluctuations, the availability of services, imprecision of reserve estimates, geological, technical, drilling and processing problems, environmental risks, weather, the lack of availability of qualified personnel or management, stock market volatility, the ability to access sufficient capital from internal and external sources and competition from other industry participants for, among other things, capital, services, acquisitions of reserves, undeveloped lands and skilled personnel that may cause actual results or events to differ materially from those anticipated in the forward looking statements.  Such forward-looking statements, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made and should not unduly be relied on.  These statements speak only as of the date of this press release.  Canadian Energy does not intend and does not assume any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.  Canadian Energy's business is subject to various risks that are discussed in its filings on the System for Electronic Document Analysis and Retrieval (SEDAR).

SOURCE Canadian Energy Exploration Inc.