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Re: News Releases - Friday, February 01, 2008
Baltic Resources and PhosCan Chemical Finalize Arrangement
Agreement; Shareholder Meetings Scheduled For March 4, 2008
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TORONTO, February 1, 2008 -- Baltic Resources Inc. (TSX-V: BLR)
announced today that it has entered a definitive Arrangement Agreement
with PhosCan Chemical Corp. providing for a Plan of Arrangement (the
"Arrangement") to implement the merger originally announced on October
29, 2007 and has obtained an interim order from the Court of Queen's
Bench of Alberta in respect of the Arrangement. Pursuant to the
Arrangement, Baltic and PhosCan will combine their interest in the
Martison Phosphate Project, in which they each currently hold an equal
joint venture interest.

Pursuant to the Arrangement, Baltic will also transfer to its newly
formed subsidiary, Canadian Orebodies Inc. ("Orebodies") all of
Baltic's assets other than Baltic's interest in the Martison Phosphate
Project and 90% of the proceeds of warrants and options exercised since
October 29, 2007, and Orebodies will assume all of Baltic's
liabilities, other than certain advances made by PhosCan on Baltic's
behalf in respect of the Martison Phosphate Project. Baltic will then
amalgamate with PhosCan's wholly-owned subsidiary, 1366825 Alberta Ltd.
The TSXV has granted conditional approval of the listing of Orebodies
shares on the TSXV. Final approval of the listing is subject to the
completion of the Arrangement and all of the requirements of the TSXV.

Under the Arrangement, Baltic shareholders will receive in exchange for
each common share of Baltic 1.4 common shares of PhosCan and one common
share of Orebodies. Based on the currently outstanding shares, an
aggregate of approximately 51,843,259 common shares of PhosCan will be
issued in exchange for Baltic shares, such that former Baltic
shareholders will hold approximately 37.2% of the then issued and
outstanding common shares of PhosCan. Upon completion of the
Arrangement, three representatives of Baltic, being Donald McKinnon,
Chris Hodgson and Gordon McKinnon, will become directors of PhosCan.

Each of Baltic and PhosCan will hold shareholders' meetings on Tuesday,
March 4, 2008 to consider the Arrangement and certain related matters.
Completion of the Arrangement is conditional upon, among other things,
the approval of a majority of votes cast by PhosCan shareholders and at
least two-thirds of the votes cast by Baltic shareholders, as well as
final court approval. The boards of directors of each of PhosCan and
Baltic have approved the Arrangement and have unanimously recommended
that shareholders vote in favour of approval of the Arrangement.

Donald McKinnon, President and CEO of Baltic, commented "We believe the
merger between Baltic and PhosCan to consolidate interests in the
Martison Project is an instrumental step that will accelerate the
project and provide excellent value for our shareholders. Also, it
will allow Canadian Orebodies to focus on its non phosphate projects
and we look forward to an exciting year with the new company".


About Baltic and PhosCan

Baltic and PhosCan are engaged through a joint venture agreement in the
advancement of the Martison Phosphate Project located near Hearst,
Ontario. The Martison Project entails the development of a phosphoric
acid plant, utilizing the Martison phosphate deposit and sulphuric acid
from Ontario base-metal smelters. Phosphate concentrate and sulphuric
acid are the two primary inputs in the production of phosphoric acid.
The Martison Project is strategically positioned in proximity to target
markets with access to excellent infrastructure including rail, power,
labour and an abundant supply of sulphuric acid. The phosphoric acid
produced will be used as feedstock for the production of higher valued
products in the fertilizer and industrial markets that provide both an
economic and logistical advantage.

Baltic Resources Inc., PhosCan Chemical Corp.

For more information please contact:

Donald McKinnon, President & CEO
Baltic Resources Inc.
(705) 268-9000

Gordon McKinnon, Manager Corporate Development
Baltic Resources Inc.
(705) 268-9000

www.balticresources.ca

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements with respect to
the Arrangement, and matters concerning the business, operations,
strategy, and financial performance of Baltic and PhosCan. These
statements generally can be identified by use of forward-looking words
such as "may", "will", "expect", "estimate", "anticipate", "intends",
"believe" or "continue" or the negative thereof or similar variations.
Such forward-looking statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations,
including that the transaction contemplated herein is completed.
Forward-looking statements are based on a number of assumptions which
may prove to be incorrect. Unless otherwise stated, all forward
looking statements speak only as of the date of this press release and
Baltic does not undertake any obligation to update such statements
except as required by law.

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Copyright (c) 2008 BALTIC RESOURCES INC. (BLR) All rights reserved.
For more information visit our website at
http://www.balticresources.ca/ or send mailto:akelcey@christinet.ca
Message sent on Fri Feb 1, 2008 at 1:29:37 PM Pacific Time
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