Culane Completes Initial Closing of Private Placement of Flow-Through Shares

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 completed an initial closing of its previously announced
bought deal private placement (the "Offering") of "flow-through" common shares
(the "Flow-Through Shares"). The Company issued a total of 850,000 Flow-Through
Shares at an issue price of $1.45 per share for gross proceeds to the Company of
$1,232,500.


RBC Capital Markets acted as the sole underwriter for the private placement and
has indicated that the second tranche closing in respect of the remaining
1,400,000 Flow-Through Shares to be issued under the Offering will be completed
on or about November 9, 2010.


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.
The Flow-Through Shares issued today will be subject to a 4 month hold period
expiring on February 27, 2010. 


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


This press release contains forward-looking statements. More particularly, this
press release contains forward-looking statements related to the anticipated
second closing of the Offering, 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 complete the second tranche of the Offering or satisfy the conditions to
closing the Offering or the failure to incur Qualifying expenditures 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.