Reef Resources Ltd. Increases Financing

CALGARY, ALBERTA–(EMWNews – July 15, 2008) –

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES.

Reef Resources Ltd. (“Reef” or the “Company”) (TSX VENTURE:REE) is pleased to announce it has closed the second and final tranche of its previously announced non-brokered private placement (the “Offering”) of units (“Units”). The Company today issued 3,015,000 Units at a price of $0.10 per Unit for gross proceeds of $301,500. Each unit is comprised of one class A common share of the Company (“Common Share”) and one half of one common share purchase warrant (“Warrant”). Each whole Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.20 per share until July 15, 2009. A finder’s fee of cash equal to up to 10% of the gross proceeds of the Offering was paid in respect of a portion of the Offering and an aggregate of 101,500 Warrants were paid to certain arm’s length parties in connection with the Offering.

The Units and underlying securities are subject to a four month hold period expiring November 16, 2008.

Together with the first tranche closed July 9, 2008, the Company issued an aggregate of 8,987,000 Units for aggregate gross proceeds of $898,700.

Proceeds of the Offering will be used to fund general working capital purposes.

Reef was formed to participate in the exploration, development and production of conventional crude oil and natural gas reserves in Ontario and western Canada. The Company’s strategy is to build shareholder value through internally generated exploration and development drilling and through selective acquisitions. Proceeds from the offering will be used for general corporate purposes.

Forward Looking Statements – This news release contains certain forward-looking statements, which include assumptions with respect to funds raised from a financing and future capital expenditures, The reader is cautioned that assumptions used in the preparation of such in formation may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company’s control. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.