Earl receives expense payments from licenceholders and appoints Wolverton Securities Ltd as sponsor

The Company advises that it has received the final payment of US$23,300 from the Cambodias MGM license holder Mr. Khoo Kim Leng under the terms of the Expense Agreement. Wolverton Securities Ltd., subject to completion of satisfactory due diligence, has agreed to act as sponsor to the Company in connection with the transaction.

MAY 2, 2003 TRADING SYMBOL: TSX-V: ERL

The Companys press releases dated 11th September 2002 and 10th October 2002 advised that Earl Resources Limited (TSX-V: ERL) (the Company") had entered into two arms length asset purchase agreements dated 9th September, 2002 to acquire 100% of Cambodias Magnum lottery license (Magnum Agreement") from its Singaporean licensee, Mr Khoo Hang Peng (Magnum Seller") and 100% of Cambodias MGM lottery license (MGM Agreement") from its Singaporean licensee, Mr Khoo Kim Leng (MGM Seller") through a reverse takeover transaction.

The Company also announced that it had also entered into an Expenses Agreement with the MGM Seller, under the terms of which the MGM seller has agreed to pay the Company Canadian $80,000, being fees and expenses that the Company is expected to incur in relation to these asset purchase transactions. Pursuant to this Expense Agreement, the Company announced that it had received the first installment of US$8,000 and second installment of US$22,000 to proceed with the filing process.

The Company advises that it also received the final payment of US$23,300 from the Cambodias MGM license holder Mr. Khoo Kim Leng under the terms of the Expense Agreement.

Wolverton Securities Ltd., subject to completion of satisfactory due diligence, has agreed to act as sponsor to the Company in connection with the transaction. An agreement to sponsor should not be construed as any assurance with respect to the merits of the transaction or the likelihood of completion.

Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and disinterested shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the Management Information Circular to be prepared in connection with the transaction, any information released or received with respect to the reverse takeover may not be accurate or complete and should not be relied upon. Trading in the securities of Earl Resources Limited should be considered as highly speculative.

For further information on Earl Resources Limited please call Kaare Foy at (604) 608-1766.

ON BEHALF OF THE BOARD
"Kaare G. Foy"
Kaare G. Foy, Director
THE TSX VENTURE EXCHANGE HAS IN NO WAY PASSED UPON THE MERITS OF THE
PROPOSED TRANSACTION AND HAS NEITHER APPROVED NOR DISAPPROVED THE
CONTENTS OF THIS PRESS RELEASE