Sunset Pacific Petroleum Ltd. announced that it has signed an agreement to farm out a 50% working interest in its interest in a hydro-carbon Concession in Tunisia. The conditions of the Agreement call for Sunset to receive all governmental approvals in Tunisia necessary to proceed on a work program on the Concession. A SWIFT coded Letter of Credit for the sum of USD 5,000,000 will be provided to the Government of Tunisia. Pursuant to the Agreement, the farmee will pay: (a) to Sunset the sum of USD 2,000,000 in sunk cost on or before 30 days after the execution of the Agreement. (b) the sum of USD 1,000,000 toward the administrative and operational costs of the Concession and (c) 50% of any additional cost related to the Concession.