Cobalt Announces Participation in Two Farm-In Agreements and $2 Million Flow-Through Financing

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES.

Cobalt Energy Ltd. ("Cobalt" or the "Company") (TSX VENTURE:CB.A) (TSX
VENTURE:CB.B) is pleased to announce that it has entered into two independent
farm-in agreements with industry partners for drilling activity in Alberta.


Cobalt has entered into a farm-in agreement with industry partners in the
Pembina area of west-central, Alberta. The Pembina prospect targets light sweet
crude oil in the Cardium formation at a depth of approximately 1,200 meters.
This prospect is considered to be ideal for horizontal well drilling with
multi-stage fracing technology. The Company has committed to participate in the
drilling of one exploration well on a farm-in block of six sections of
undeveloped lands. Cobalt will pay a 47% capital interest to earn a 43% working
interest in the drilled section, and an additional 28% working interest in one
other section of the farm-in block. The Company will have a rolling option to
participate in additional development wells under the same earning terms, with
ultimate potential of up to two wells per section at an average working interest
of approximately 35%. The farm-in block also holds potential for natural gas in
shallower zones which will be earned by wells drilled to the Cardium formation.
In addition, the Cobalt has an option to acquire a 25% working interest in four
sections of undeveloped land in the Pembina area which is prospective for light
oil in the Cardium formation as well as natural gas in the Mannville formation.


Additionally, the Company has entered into an agreement for a five section
farm-in block, in the Hines area located in the northern area of the Peace River
Arch, Alberta. The Hines program targets shallow natural gas with multi-zone
potential at drilling depths of up to 1,000 meters. The Company has committed to
participate in the drilling of one exploration well on the five section farm-in
block. Cobalt will pay a 30-36% capital interest up to the well's casing point
to earn an 18-21% working interest in the entire farm-in block. The Company will
also have an option to participate in a joint venture with its partner in an
additional 35 sections of land in the immediate Hines area. Cobalt anticipates
equalizing up to a 50% working interest in the joint venture lands through
expenditures in drilling, well recompletions, and seismic programs. With
election of this joint venture option, Cobalt may participate in exploration and
development opportunities in a total of 40 sections of undeveloped lands.


Cobalt is also pleased to announce that it that it has entered into an agreement
with Wolverton Capital Markets, a subsidiary of Wolverton Securities Ltd., to
issue by way of a private placement up to 5,714,286 flow-through Class A Shares
on a commercially reasonable efforts basis, at a price of $0.35 per through
Class A Share, for gross proceeds of up to approximately $2.0 million
("Offering"). Proceeds from the Offering will be used to incur qualifying
expenditures which will be renounced in favor of the subscribers for the 2008
taxation year.


Closing of the Offering is expected to occur on or about December 16, 2008, and
is subject to the receipt of all requisite regulatory and stock exchange
approvals. The issued shares will be subject to a four month hold period from
the date of closing.


Cobalt participates in the exploration, development and production of
conventional crude oil and natural gas reserves in western Canada. The Company's
strategy is to build shareholder value through selective acquisitions,
exploitation, and exploration and development drilling.


Reader Advisory - This news release contains certain forward-looking statements,
which include assumptions with respect to funds from financing and use of
capital. The reader is cautioned that assumptions used in the preparation of
such information may prove to be incorrect. All such forward looking statements
involve substantial known and unknown risks and uncertainties, certain of which
are beyond the Company's control. Such risks and uncertainties include, without
limitation, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers, tax treatment
(including royalties), inability to retain drilling rigs and other services,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources, the
impact of general economic conditions in Canada, the United States and overseas,
industry conditions, changes in laws and regulations (including the adoption of
new environmental laws and regulations) and changes in how they are interpreted
and enforced, increased competition, the lack of availability of qualified
personnel or management, fluctuations in foreign exchange or interest rates,
stock market volatility and market valuations of companies with respect to
announced transactions and the final valuations thereof, and obtaining required
approvals of regulatory authorities. The Company's actual results, performance
or achievements could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurances can be given
that any of the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefits, including the amount
of proceeds, that the Company will derive therefrom. Readers are cautioned that
the foregoing list of factors is not exhaustive. All subsequent forward-looking
statements, whether written or oral, attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by these
cautionary statements. Furthermore, the forward-looking statements contained in
this news release are made as at the date of this news release and the Company
does not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable securities
laws. BOE or boe/d may be misleading particularly if used in isolation. A BOE
conversion of 6mcf:1bbl is based as an energy equivalency conversion method
primarily applicable at the burner tip and does not necessarily represent a
value equivalency at the well head.