Culane Completes $3.26 Million Private Placement

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES


Culane Energy Corp. ("Culane" or the "Company") (TSX VENTURE:CLN) is pleased to
announce that it has now has completed the final closing of its previously
announced bought deal private placement (the "Offering") of 2,250,000
"flow-through" common shares (the "Flow-Through Shares") at an issue price of
$1.45 per share for gross proceeds to the Company of $3,262,500. An aggregate of
1,400,000 Flow-Through Shares were issued today, in addition to the 850,000
Flow-Through Shares issued on October 26, 2010, as previously announced. The
Flow-Through Shares issued today will be subject to a 4 month hold period
expiring on March 10, 2010. RBC Capital Markets acted as the sole underwriter
for the private placement.


The gross proceeds from the Offering will be used to fund ongoing exploration
activities eligible for Canadian exploration expenses ("Qualifying
Expenditures") to advance Culane's exploration program in southwest
Saskatchewan. The Qualifying Expenditures will be renounced in favour of the
subscribers of the Flow-Through Shares effective on or before December 31, 2010.



Culane is a junior oil and gas company engaged in the exploration, development
and production of oil and natural gas in Western Canada. 


This press release contains forward-looking statements. More particularly, this
press release contains forward-looking statements related to the use of proceeds
from the Offering and the tax treatment of the Flow-Through Shares. The
forward-looking statements contained in this document are based on certain key
expectations and assumptions made by Culane, including: expectations and
assumptions concerning the second closing of the Offering, and the satisfaction
of other conditions to the completion of and use of proceeds from the Offering.
Although Culane believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because Culane can give no assurance
that they will prove to be correct. Since forward-looking statements address
future events and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include, but are not
limited to the failure to incur Qualifying expenditures and use the proceeds of
the private placement as planned. Additional information on these and other
factors that could affect Culane's operations and financial results are included
in reports, including Culane's annual information form for the financial year
ended December 31, 2009, on file with Canadian securities regulatory authorities
and may be accessed through the SEDAR website (www.sedar.com). The
forward-looking statements contained in this document are made as of the date
hereof and Culane undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws. The forward-looking statements contained in this document are
made as of the date hereof and Culane undertakes no obligation to update
publicly or revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise, unless so required by
applicable securities laws.


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy the securities in any jurisdiction. Culane's common shares and
the Flow-Through Shares will not be and have not been registered under the
United States Securities Act of 1933 and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements.