OTTAWA -- Tropic Networks Inc. ("Tropic"), a developer of Wavelength Tracker powered metro regional DWDM systems, announced today that in its continuing effort to maximize value for its stakeholders it is proposing to spin out its high technology assets and business into a new company to be renamed Tropic Networks ("Newco"). After the transfer of Tropic's technology assets to NewCo, Tropic will refocus its business in the oil and gas sector and raise capital to finance the acquisition of a TSX listed public company, Chamaelo Exploration Ltd. ("Chamaelo") (TSX:CXN), and another private company, Tournament Energy Ltd. ("Tournament"), pursuant to a plan of arrangement (the "Arrangement"). Chamaelo, on October 25, 2005 announced the details of the Arrangement publicly. Upon completion of the Arrangement the combined entity will carry on business under the name "Chamaelo Exploration".

The Arrangement, which is subject to shareholder and regulatory approval, will provide approximately CDN$9.4M in additional funds to support Newco's growing technology business following the Arrangement.

"2005 has been a very successful year for the company with good progress in many areas, including significant growth in sales. The market for metro optical equipment continues to improve, and this financial transaction further strengthens our ability to grow the business with key partners and clients in 2006." said David Orr, Executive Chairman of the Board, Tropic Networks.

Tropic Networks Inc.