Niagara Corporation Says Wynnefield Release Replete With Misstatements

PK) today responded to the press release and related letter issued this
morning by Nelson Obus of The Wynnefield Group , a hedge fund firm that
operates from New York and the Cayman Islands. Since the deregistration
became effective last summer, Niagara has continued to issue complete
quarterly financial reports and press releases concerning material
developments, all of which are easily accessible on the Company's
website (http://www.

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He has
engaged in various schemes and maneuvers in an attempt to thwart the
deregistration, including three separate purported transfers of small
numbers of Niagara shares (10 shares, 90 shares and 1 share
respectively) to more than 300 persons, some of whom were unaware that
Niagara stock had been transferred into their names.

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"

This release contains certain "forward-looking statements" made pursuant
to the "safe-harbor" provisions of the Private Securities Litigation Reform
Act of 1995. Such
risks , uncertainties and other factors include those described in the
Company's Annual Report on Form 10 -K for the year ended December 31, 2003.interoil.

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Niagara urges Mr.

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Michael Scharf, Chairman, President and CEO of Niagara, stated:

"Once again, Mr.

Stockholders should know that the Company does not intend to re-register
and is not required to do so, as the Company had less than 500
stockholders of record on December 31, 2004 and less than 300
stockholders of record on January 1, 2005.

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com), and Niagara's stock has been actively
traded on the Pink Sheets.
The forward-looking statements made herein are only made as of the date of
this release, and the Company undertakes no obligation to publicly update such
forward -looking statements to reflect subsequent events or circumstances.

InterOil Corporation (TSX:IOL ) (ASX.

This category contains links to the Antarctic countries and islands as defined above and to the web sites contained there-in.

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Obus to cease his campaign of harassment so that
management can focus all of its efforts on operating the business of the
Company, which recently reported record sales and earnings.

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Obus has a history of opposing the Company's decision to
deregister its common stock, which took effect last summer.

The reverse and forward stock splits that were effected by Niagara at
the end of 2004 were designed to ensure that the Company maintained its
deregistered status. Drilled out of cement.

Prospect Description: This well is targeting a reef limestone,
identified by a seismic survey.

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niag.

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According to the Antarctic Treaty of 1959, the Antarctic Region is defined as follows;
Article VI
The provisions of the present Treaty shall apply to the area south of 60 deg South Latitude, including all ice shelves, but nothing in the present Treaty shall prejudice or in any way affect the rights, or the exercise of the rights, of any State under international law with regard to the high seas within that area.

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News Editors

TORONTO----InterOil Corporation
(TSX:IOL) (AMEX:IOC) (ASX/POMSoX:IOC ):

Black Bass Prospect

Type: Oil / Gas Exploration well

Location: PPL 236, Eastern Papuan Basin
-8 degrees 30' 2"S / 146 degrees 5' 15"E

Current Status: Set 9-5/8" casing and cemented.

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Obus has acted irresponsibly and to the detriment of
the Company and its stockholders.

InterOil Corporation: Drilling Report No. 1

Any information contained herein regarding
resources are references to undiscovered resources under NI 51-101,
whether stated or not.

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Installed and
tested BOP.com

InterOil currently has no reserves as defined in Canadian
National Instrument 51-101 Standards of Disclosure for Oil and Gas
Activities ("NI 51-101").

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He continues to issue press releases
that are replete with misstatements and that make unsubstantiated
accusations. Obus ' continuing harassment and misguided
efforts to deprive Niagara's stockholders of the substantial benefits of
deregistration have been nothing but harmful to the Company and its
stockholders , have been unnecessary distractions to Niagara's
management, and have misled our investors , bankers, customers, suppliers
and employees.

FOR FURTHER INFORMATION: Please see the InterOil web site at
www.

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These statements involve known and unknown risks, uncertainties
and other factors, many of which are beyond the control of the Company, that
may cause the Company's actual results and estimates of cost savings to be
materially different from those expressed or implied by such statements.

Planned Total Depth: Approximately 3,937 feet (1,200 meters) deep.:IOC ) (AMEX:IOC)

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NEW YORK, Niagara Corporation (OTC:
NGCD. Mr.

Currently drilling ahead at 1,509 feet (460
meters) at 17:00 hours PNG time.

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Operator: InterOil subsidiary SPI (210) Limited.