NEWS RELEASE

26 January 2005

EastCoast Energy finalizes terms of rights offering

TORTOLA, BRITISH VIRGIN ISLANDS – EastCoast Energy Corporation ("EastCoast") is pleased to announce that it has finalized the terms of a rights offering, which is expected to result in gross proceeds of approximately $5.49 million.

EastCoast will be issuing, to holders of its outstanding Class A common shares and Class B subordinate voting shares ("Class B shares") of record at the close of business on February 7, 2005, transferable rights certificates to subscribe for Class B shares before 5:00 p.m. (Calgary time) on March 4, 2005 on the terms set out in the rights offering circular to be available on the SEDAR website at www.sedar.com. Each shareholder will receive one right for each Class A share and Class B share held on the record date. The holders of rights will be entitled to acquire one Class B share for every ten rights held upon payment of the subscription price of $2.60 per share. The rights have been conditionally approved for listing on the TSX Venture until 12:00 noon (Calgary time) on March 4, 2005. Shareholders who exercise all of their rights will also be entitled to acquire additional Class B shares, if available, pursuant to an additional subscription privilege as described in the rights offering circular.

W. David Lyons, the Chairman of EastCoast and a principal shareholder of EastCoast, has indicated that he will, directly or indirectly, if there are available additional Class B shares, purchase such number of additional Class B shares under the additional subscription privilege, which together with the common shares purchased by him, directly or indirectly, under the basic subscription privilege will, when multiplied by the subscription price, be equal to a maximum of $3,000,000.

The rights offering is subject to the completion of all applicable regulatory approvals including that of the TSX Venture Exchange.

Forward Looking Statements
This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond EastCoast's control, including the impact of general economic conditions in the areas in which EastCoast operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities.  In addition there are risks and uncertainties associated with oil and gas operations, therefore EastCoast's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that EastCoast will derive therefrom.

For further information please contact:

Peter R. Clutterbuck, CEO
+44 (0) 7768 120727

Nigel A Friend, CFO
+255 (0)22 2138737

or visit the Company's web site at www.orcaexploration.com.
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