Cobalt Updates Proposed 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) announces today it has amended the proposed financing previously
announced on May 26, 2008 which is associated with the intended purchase of
certain lands and producing assets in the Woking area of Alberta (the
"Acquisition").


Cobalt intends to complete a private placement of up to 4,000,000 common Class A
share subscription receipts ("Common Share Subscription Receipts") at an issue
price of $0.40 per Common Share Subscription Receipt and up to 3,500,000
flow-through Class A share subscription receipts ("Flow-Through Subscription
Receipts") at an issue price of $0.45 per Flow-Through Subscription Receipt for
gross proceeds of up to $3,575,000 (the "Offering"). A finders fee of 6% will be
paid to certain arm's length parties in connection with the private placement.
Closing of the Offering is expected to occur on or about June 24, 2008.


Each Common Share Subscription Receipt will entitle the holder to receive one
Class A common share of the Company and each Flow-Through Subscription Receipt
will entitle the holder to receive one Class A common share of the Company to be
issued on a "flow-through" basis without further payment or action on the part
of the holder, subject to the completion of the Acquisition. The gross proceeds
of the Offering will be deposited in escrow pending the closing of the
Acquisition. If the Acquisition closes on or before July 15, 2008, the net
proceeds of the Offering will be released to the Company for the purposes of
completing the Acquisition.


The Common Share Subscription Receipts, Flow-Through Subscription Receipts and
underlying Class A common shares will be subject to a four month hold period
from the date of closing the Offering. The transaction is subject to receipt of
all necessary regulatory and stock exchange approvals.


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 internally generated exploration
and development drilling and through selective acquisitions.


Reader Advisory - This news release contains certain forward-looking statements,
which include assumptions with respect to completion of an acquisition, funds
from financing, increase to production and reserves 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.