The following letter was written by the law firm representing Mr. Greg Noval to David Anderson in response to his April 1st letter filled with allegations against Nr. Noval.

"CANADIAN SUPERIOR CHAIRMAN RESPONDS AGGRESSIVELY TO PALO ALTO INVESTORS

Canadian Superior Energy Inc. chairman, Greg Noval, has responded aggressively to Palo Alto Investors' inaccuracies in its letter dated April 1, 2009, and demands an apology, or will sue Palo Alto Investors and their associates. Mr. Noval is chairman of Canadian Superior.

Dear Sir:

Re: Canadian Superior Energy Inc.

I write on behalf of Mr. Greg Noval, in response to your open letter to the board of directors and all shareholders of Canadian Superior Energy, which was published on-line on April 1, 2009.

In my opinion, your open letter contains remarks and statements that are defamatory of my client, as more particularized in the notice under the Defamation Act of Alberta being served concurrent with the sending of this letter.

Not only are certain of the statements false and defamatory, your open letter is inaccurate and unfair by virtue of its conspicuous omission to set out certain facts of which you are well-aware. These facts include:

Mr. Noval's position as chairman of Canadian Superior and his position as chairman of Challenger up to the date of his resignation from its board on Oct. 23, 2008, had existed for a number of years and was fully disclosed in numerous public filings;
Palo Alto would either have had this knowledge at the time of its investment in Canadian Superior, or was willfully blind to such public knowledge;
Palo Alto invested aggressively in Canadian Superior in the fall of 2008 in spite of the issues of which it now complains;
Mr. Noval is not, contrary to your allegations, the largest shareholder of Challenger;
The agreements between Canadian Superior and Challenger, including the credit facility, were properly handled in the manner prescribed by Canadian corporate and securities laws;
The credit facility was reviewed in advance by the Alberta Securities Commission;
The Toronto Stock Exchange accepted notice of the loan under the credit facility;
Approval of the credit facility was given by Canadian Superior's board of directors;
It was, in the opinion of counsel to Canadian Superior, then and now, prudent and appropriate for Canadian Superior to have entered into the credit facility.
Many of these facts were set out in my letter to Steelhead Partners LLP dated Oct. 10, 2008, with which you appear to be completely familiar.

We deliberately refrain from responding to the other allegations in your open letter, other than to say there are numerous factual inaccuracies, errors and other omissions.

On behalf of Mr. Noval, I herewith request that you cause to be published in Marketwatch a full and complete apology to Mr. Noval within 48 hours from the date hereof, failing which I am instructed to commence an action again Palo Alto Investors and yourself, for defamation.

Yours very truly,

Brownlee LLP

Per: V. Phil Lalonde"

It appears that Admiral Noval has turned his flagship, the Victory into the wind, and fired a broadside to warn Anderson's ship, the Intruder, that the next volley fired will have a devastating effect. Admiral Noval knows these waters well having sailed them his entire life, whereas Captain Anderson finds himself in unfamiliar waters.

Billable hours. Best Wishes; Scott