Shannon Subsidiary, Logical Sequence Incorporated, Cancels CDN $5,000,000.00 in Purported Preferred Stock for CDN $28,000.00 Payment

On February 17, 2006, the board of directors of Logical Sequence Incorporated ("Logical"), a Shannon International Inc. (OTCBB: SHIR) (Shannon" or "the Company") technology subsidiary, resolved to cancel preferred stock on the basis that the stock had not been validly created and issued and was therefore null and void. Shannon will be removing a $5,000,000.00 liability from its balance sheet as a subsequent event in its annual report on Form 10ksb.

On September 26, 2006, Shannon and Logical entered into an agreement with Larnaca Limited, a Turks and Caicos corporation and Max Wandinger of Calgary, Alberta whereby Larnaca Limited and Mr. Wandinger waived any and all rights to 50,000 shares of LSI preferred stock purported to have been issued in 2002 and compromise of outstanding legal and consulting fees owed to Mr. Wandinger in consideration of payment to Mr. Wandinger of $28,000.

Since the acquisition of 51% of Logical by Shannon in June 2004, Shannon reserved a liability as a result of redeemable preferred stock of Logical, reported by Logical as outstanding. This amount reserved for the quarter ended March 31, 2006 was $4,439,363. The preferred shares were 50,000 preferred shares purportedly issued by Logical in August 2002 in connection with Logical's acquisition of its predecessor software. The preferred stock had been reported to accrue a 4% dividend which was to become payable only if Logical had a minimum of $1,000,000 CDN. after tax profit. The preferred shares were to be redeemable by Logical at their $100 per share par value at any time prior to September 1, 2012, when redemption was to be mandatory.

ABOUT SHANNON

Shannon strategically grows its business by finding, evaluating, and creating value. The company has established a significant interest in oil and gas permits in the central Maritime Basin on the East Coast of Canada, primarily onshore in the Province of Prince Edward Island. In addition to its resource assets, Shannon owns controlling interest in Logical Sequence Incorporated, Nova Scotia based developer of the LynXphere® line of management software for the retail automotive dealership market.

FORWARD LOOKING STATEMENTS

Except for the Historical Information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risk and uncertainties that may cause actual results to differ materially. These forward-looking statements speak only as of the date hereof and SHIR disclaims any intent or obligation to update the forward-looking statements.

Contacts: Shannon International Inc. Bill Clements President (902) 481-7225 x 1002 (902) 481-7224 (FAX) Email: bclements@shannon-intl.com Shannon International Inc. Dennis Brovarone Secretary (303) 466-4092 (303) 466-4826 (FAX) Email: dbrovarone@aol.com