Calgary, AB, November 6, 2003 - Cell-Loc Inc. (TSX: CLQ) ("Cell-Loc" or the "Company") today reported its financial results for the fiscal year ended June 30, 2003.

For the year ended June 30, 2003, Cell-Loc reported a net loss of $18.7 million ($0.63 per share) as compared to $8.5 million ($0.30 per share) for the previous year. Included in the $18.7 million loss is over $14.4 million in business restructuring costs and asset impairment charges consisting of write-downs of intellectual property, network assets and goodwill.

Also today, the Company reports the mailing to securityholders of the Notice of Annual and Special Meeting, Notice of Petition and Information Circular for the securityholders' meeting to be held on December 1, 2003 respecting the previously announced "Plan of Arrangement" transaction (the "Arrangement") involving the Company, 1073691 Alberta Ltd. ("1073691") and Capitol Energy Resources Investment Partnership.  Pursuant to the Arrangement:

(i)      the Company will change its name from "Cell-Loc Inc." to "Capitol Energy Resources Ltd.";

(ii)      a new class of voting common shares (the "Capitol Energy Shares") and a new class of non-voting common shares (the "Capitol Energy Non-Voting Shares") of the Company will be created, the terms of the non-voting shares providing for "coat-tail" rights which give the holders thereof the right to participate, on identical terms, in a takeover bid resulting in the acquisition of at least 50 percent of the voting shares;

(iii)      $4.9 million will be invested in Cell-Loc by a group of private investors through the purchase of an aggregate of approximately 56 million Capitol Energy Shares and Capitol Energy Non-Voting Shares and the purchase of $200,000 of non-interest bearing, unsecured, redeemable, convertible debentures;

(iv)     Cell-Loc's existing technology assets and all associated contractual obligations, as well as $2.5 million in cash, will be transferred from Cell-Loc to 1073691 in consideration of common shares of 1073691, all of which shares shall be distributed to current Cell-Loc shareholders in step (v) below; and

(v)     Cell-Loc's current shareholders will exchange each Cell-Loc share held for one share of 1073691 and one-half of one Capitol Energy share.  As a result of this exchange, the outstanding common shares of Cell-Loc will effectively have been consolidated on a one for two basis.

Holders of Cell-Loc warrants and share purchase options will receive, in retirement of such securities, similar securities in 1073691 and in Capitol Energy, on the basis of one full security in 1073691 and one-half of one security in Capitol Energy for each Cell-Loc warrant or option currently held.

As a result of the Arrangement, shareholders will own 100 percent of 1073691, which company will own all of Cell-Loc's existing assets related to its wireless location technology business and will have an additional $2.5 million in working capital.  Shareholders will also own approximately 22 percent of the outstanding equity of Capitol Energy (including 55 percent of the outstanding voting shares), which company will be poised, with a new board of directors (led by Mr. Grant Billing) and $1 million in additional working capital, to recruit a management team and focus on building a successful oil and gas exploration, production and marketing company.  Both companies will be seeking listings on the TSX Venture Exchange in conjunction with the completion of the Arrangement.

The June 30, 2003 financial statements will be immediately filed on SEDAR and concurrently mailed to shareholders along with the Notice of Annual and Special Meeting, Notice of Petition and Information Circular, which mailing is to occur on or about November 6, 2003.  Further, any Cell-Loc shareholder entitled to receive the June 30, 2003 financial statements may obtain a copy of them in advance upon request to Cell-Loc.

About Cell-Loc Inc.
Cell-Loc Inc. (www.cell-loc.com), a leader in the wireless location industry, is the developer of Cellocate™, a family of network-based wireless location products that enable location-based services. Located in Calgary, Alberta, Cell-Loc currently develops, markets and supports its patented wireless location technology in Asia as well as North and South America, with a view to expanding globally. Cell‑Loc is listed on the Toronto Stock Exchange (TSX) under the trading symbol: "CLQ."

Forward Looking Statements: This news release contains certain information that may constitute forward-looking statements under applicable securities laws. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Actual results achieved may vary from the results anticipated or implied herein and variations may be material. There is no representation by the Company that actual results achieved will be the same in whole or in part as those implied in any forward looking statements. 

Neither the TSX nor the TSX Venture Exchange has approved nor disapproved of the contents of this news release.

Tammy Yamkowy
Director, Corporate Communications & Investor Relations
Phone: 403.569.5748
tammy.yamkowy@cell-loc.com