SVI StorageVault Canada Inc

Iteration Energy Ltd. ("Iteration") (TSX:ITX) and Storm Ventures International
Inc. ("SVI"), a private Alberta-based oil and gas exploration and production
company, are pleased to announce that the business combination between Iteration
and SVI pursuant to an arrangement under the Business Corporations Act (Alberta)
(the "Arrangement") was completed today. The Arrangement created a new, growth
oriented company named Chinook Energy Inc. ("Chinook") with current production
of approximately 16,700 boe/d (including the production associated with the West
Central Acquisition (as defined below)) and a deep inventory of repeatable
drilling opportunities in both Western Canada and Tunisia. It is anticipated
that the common shares of Chinook will commence trading on the Toronto Stock
Exchange under the trading symbol "CKE" three to four business days after the
day hereof and that the common shares of Iteration will be delisted at this
time.


Pursuant to the Arrangement, Iteration shareholders received approximately $1.05
of cash and 0.2400 of a common share of SVI for each Iteration share held. SVI
issued approximately 52.1 million common shares and paid $225 million to acquire
all of the issued and outstanding common shares of Iteration. After giving
effect to the Arrangement, Chinook has approximately 213.8 million common shares
outstanding on a non-diluted basis. 


Chinook will be led by the SVI management team and Board with the addition of
Donald Archibald, the former Chairman of Iteration, to the new Board of Chinook.



Post-Arrangement Key Attributes of Chinook 

Chinook combines high quality gas-weighted assets in Western Canada with an
exciting high growth oil business in North Africa which includes high impact
exploration, field development opportunities and production in Tunisia. Chinook
has an extensive inventory of drilling and field development opportunities in
both Western Canada and North Africa with approximately 580,000 net undeveloped
acres in Canada and approximately 1.4 million net acres in Tunisia. On June 30,
2010, Chinook expects to close a property acquisition that will increase
Chinook's focus in the Gilby area for gross cost of $46.25 million (the "West
Central Acquisition"). The assets to be acquired currently produce approximately
1,200 boe/d and will add 4.4 Mmboe of proved plus probable reserves. The
remaining $40 million due at closing will be financed with a portion of the $25
million of non-core asset sales (current production of approximately 300 boe/d)
and debt available on the existing Chinook credit facility. 


Chinook also has the following key attributes following completion of the
Arrangement, the repayment of $150 million of the Bridge Loan (as defined below)
and after giving effect to the West Central Acquisition:




--  Initial total company production of approximately 16,700 boe/d
    consisting of 16,000 boe/d in Canada (33% liquids) and 700 bbl/d of
    light oil in Tunisia. 
--  Chinook's business plan is to target a minimum 10% annual growth in the
    assets and production levels in Canada initially relying on the
    footprint and scale of the existing opportunities and asset base as a
    competitive edge. 
--  Chinook's international business targets 25% plus annual growth and is
    initially focused on oil assets in Tunisia. Chinook expects its Tunisian
    business to be self-funding within 18 months. 
--  69.1 Mmboe of National Instrument 51-101 ("NI 51-101") Proved plus
    Probable reserves (80% in Canada) with significant future reserve growth
    potential identified through increased recoveries, field extensions and
    exploration.(1)(2)(3)(4)(5) 
--  Proved plus Probable reserve life index of approximately 10 years. 
--  Canadian tax pools in excess of $545 million. 


Notes:                                                                      
(1) Before any potential dispositions.                                      
(2) Iteration reserves evaluated as at December 31, 2009 by GLJ Petroleum   
    Consultants Ltd. and McDaniel & Associates Consultants Ltd. in          
    accordance with NI 51-101.                                              
(3) SVI reserves evaluated as at December 31, 2009 by Paddock Lindstrom &   
    Associates Ltd. and Sproule International Limited in accordance with NI 
    51-101.                                                                 
(4) Includes interim period asset acquisition completed by SVI on March 1,  
    2010 and effective October 1, 2009. Reserves for acquired assets        
    evaluated as at December 31, 2009 by McDaniel & Associates Consultants  
    Ltd. in accordance with NI 51-101.                                      
(5) Includes West Central Acquisition anticipated to be completed by Chinook
    on June 30, 2010. Reserves for assets to be acquired pursuant to the    
    West Central Acquisition evaluated as at December 31, 2009 by GLJ       
    Petroleum Consultants Ltd. in accordance with NI 51-101.                



Outlook 

Management of Chinook anticipates that it will drill 30 to 35 wells over the
balance of the year and will focus on the following domestic and international
opportunities:


2010 Focus on Western Canadian Oil Opportunities



--  An initial focus on waterflood performance at Manyberries (Sunburst) and
    Spirit River/Grovedale (Doe Creek). 
--  Test Triassic oil prospects in the Grande Prairie and Peace River Area
    (Montney, Doig, Halfway, Charlie Lake). 
--  Complete four well Bakken exploration project to earn 40% in 50,000 net
    acres. 
--  An active 2011 winter program in the Keg River at Rainbow Lake. 


Big Play Light Oil Exposure in Tunisia

--  Second half 2010 exploration activity including the drilling of a 4,400
    metre Ordovician test at Jenein, Tunisia (65% working interest), two
    appraisals wells to the company's Remada oil discovery and one or two
    additional wells at Borj El Khadra or Remada Sud. 
--  Plan of Development and request for the designation of a concession are
    under discussion with ETAP for the Remada Sud permit (86% working
    interest) onshore in the Ghadames Basin. Chinook would like to commence
    development in 2011. 
--  In excess of 15 drillable exploratory prospects and three undeveloped
    discoveries on seven blocks. 


Priority Development of Gas Resource Opportunities

--  Confirm the extent of high quality resource opportunities in the Montney
    at Knopcik, Gordondale and Monias. 
--  Prove up the potential of the large scale exposure to resource
    opportunities to the Nikanassin and Notikewin at Gold Creek, Knopcik,
    Gilby and Brazeau. 
--  Maintain a development bias towards projects with liquid yield in excess
    of 15 bbls/mmcf. 



Repayment of $150 Million Bridge Loan with Assets of Iteration

In connection with the completion of the Arrangement, SVI received a bridge loan
of $167.8 million from the Alberta Investment Management Corporation, on behalf
of certain of its clients (the "Bridge Loan"). Immediately following completion
of the Arrangement, Chinook repaid $150 million of the Bridge Loan in full by
transferring to nominees of the lender all of the limited partnership units of a
limited partnership which holds an undivided approximate 25% working interest in
all of the assets of Iteration as at the date of the completion of the
Arrangement. Pursuant to a management and administration agreement with the
general partner of the limited partnership, Chinook will administer the
transferred Iteration assets held by the limited partnership on behalf of the
general partner of the limited partnership. Chinook intends to repay the
remaining $17.8 million owing on the Bridge Loan before the end of July 2010
with the balance of the proceeds from the $25 million of non-core asset sales.


Credit Facilities

At closing of the Arrangement, a new $240 million bank facility was put in place
to replace SVI's and Iteration's prior bank facilities. Chinook has current
aggregate debt of approximately $197.8 million comprised of approximately $180
million owing under the new bank facility (after repayment of $150 million of
the Bridge Loan and after giving effect to the West Central Acquisition) and
$17.8 million owing under the Bridge Loan. Management of Chinook believes that,
with its intent to keep capital commitments at or below cash flow for the
foreseeable future, combined with a focussed hedging strategy, the new bank
facility will accommodate Chinook's ongoing business plan allowing for organic
growth. 


Forward-Looking Statements

In the interest of providing shareholders and potential investors with
information regarding Chinook, including management's assessment of the future
plans and operations of Chinook, certain statements contained in this joint new
release constitute forward-looking statements or information (collectively
"forward-looking statements") within the meaning of applicable securities
legislation. Forward-looking statements are typically identified by words such
as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will",
"project", "could", "plan", "intend", "should", "believe", "outlook",
"potential", "target" and similar words suggesting future events or future
performance. In addition, statements relating to "reserves" are deemed to be
forward-looking statements as they involve the implied assessment, based on
certain estimates and assumptions, that the reserves described exist in the
quantities predicted or estimated and can be profitably produced in the future.
In particular, this joint news release contains, without limitation,
forward-looking statements pertaining to the following: potential synergies
resulting from the Arrangement and the West Central Acquisition; the effect of
the Arrangement and the West Central Acquisition on Chinook's production,
reserves, undeveloped land position, reserve life index and tax pools, Chinook's
operational and business plans.


With respect to forward-looking statements contained in this joint news release,
Chinook has made assumptions regarding, among other things: that Chinook will
complete the West Central Acquisition on the terms agreed on June 30, 2010,
future capital expenditure levels; future oil and natural gas prices and
differentials between light, medium and heavy oil prices; Chinook's future oil
and natural gas production levels; future exchange rates and interest rates;
Chinook's ability to obtain equipment in a timely manner to carry out
development activities; Chinook's ability to market oil and natural gas
successfully to current and new customers; the impact of increasing competition;
the ability of Chinook to obtain financing on acceptable terms; and the ability
of Chinook to add production and reserves through development and exploitation
activities. Although Chinook believes that the expectations reflected in the
forward looking statements contained in this joint news release, and the
assumptions on which such forward-looking statements are made, are reasonable,
there can be no assurance that such expectations will prove to be correct.
Readers are cautioned not to place undue reliance on forward-looking statements
included in this joint news release, as there can be no assurance that the
plans, intentions or expectations upon which the forward-looking statements are
based will occur. By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties that contribute to the
possibility that the predictions, forecasts, projections and other
forward-looking statements will not occur, which may cause Chinook's actual
performance and financial results in future periods to differ materially from
any estimates or projections of future performance or results expressed or
implied by such forward-looking statements. These risks and uncertainties
include, among other things, the following: that the West Central Acquisition
may not be completed on the terms agreed or at all, volatility in market prices
for oil and natural gas; failure to complete planned operational activities;
incorrect assessment of the value of the Arrangement and the West Central
Acquisition; failure to realize the anticipated benefits and synergies of the
Arrangement and the West Central Acquisition; general economic conditions in
Canada, the U.S. and globally; and the other factors described under "Risk
Factors" in Appendix "F" to Iteration's management information circular and
proxy statement dated May 29, 2010 available in Canada at www.sedar.com. Readers
are cautioned that this list of risk factors should not be construed as
exhaustive.


The forward-looking statements contained in this joint news release speak only
as of the date hereof. Except as expressly required by applicable securities
laws, Chinook does not undertake any obligation to publicly update or revise any
forward looking statements, whether as a result of new information, future
events or otherwise. The forward-looking statements contained in this document
are expressly qualified by this cautionary statement.


Barrels of Oil Equivalent

Barrels of oil equivalent (boe) is calculated using the conversion factor of 6
Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil.
Boes may be misleading, particularly if used in isolation. A boe conversion
ratio of 6 Mcf:1 bbl (barrel) is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.

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