Capitol Energy Resources Ltd. 

&

 

News Release
For immediate release	Trading Symbols: CPX & LTI  (TSV-V)

Calgary, AB, January 29, 2004 – Capitol Energy Resources Ltd. (TSX-V: CPX) ("Capitol Energy") (formerly Cell-Loc Inc.) and Cell-Loc Location Technologies Inc. (TSX-V: LTI) ("CLTI") today announce that a settlement has been reached by them with a third party holder of warrants of the former Cell-Loc Inc. in respect of the right of dissent exercised by that warrantholder. This right of dissent arose in relation to the Plan of Arrangement implemented by Cell-Loc Inc., 1073691 Alberta Ltd. and Capitol Energy Resources Investment Partnership on December 2, 2003. The dissenting warrantholder has agreed to accept the sum of $262,000 in full satisfaction of their dissent claim against Capitol Energy, CLTI and Capitol Energy Investment Partnership. The $262,000 is to be paid by way of the delivery of: (i) $62,000 in cash (paid by CLTI); (ii) 312,500 common shares of CLTI at a share price of $0.32; and (iii) 125,000 common shares of Capitol Energy at a share price of $0.80. The foregoing shares for debt transaction is subject to approval by the TSX Venture Exchange.

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.

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

To receive Cell-Loc Location Technologies news, please subscribe to CCNMatthews' Hot Off the Wire free news service (http://eservices.ccnmatthews.com/hotw/index.jsp).

- 30 -

For further information please contact: