Kootenay Energy Inc. Announces Golden Oil Corporation Completes Acquisition of Kootenay Energy Inc.

Kootenay Energy Inc. (TSX:KTY) ("Kootenay" or the "Corporation") and Golden Oil
Corporation ("Golden") jointly announce that Golden Oil Canada Corporation, a
wholly owned subsidiary of Golden, has taken up, paid for and acquired
22,056,980 or 94.26% of the issued and outstanding common shares of Kootenay on
a fully diluted basis in connection with Golden's previously announced cash
offer for the common shares of Kootenay. The offer price was $0.66 Cdn per
common share, representing an approximate 65% premium to the closing trading
price of the common shares of Kootenay on July 15, 2008, the last trading day on
which the common shares traded prior to the announcement of the offer.


It is anticipated that a notice of compulsory acquisition relating to the
compulsory acquisition of the remaining 5.74% of the issued and outstanding
common shares of Kootenay under the provisions of Part 16 of the Business
Corporations Act, Alberta, will be mailed to the remaining shareholders of
Kootenay today. Upon completion of this compulsory acquisition, it is
anticipated that Kootenay will become a wholly owned subsidiary of Golden.


In connection with the completion of the take-over bid all of the existing
directors of Kootenay except for John C. Marsh have resigned and the following
individuals have been appointed as directors of the Corporation including:
Hee-Cheol Koo, Byung-wook Hwong, Jong Ho Kang and John C. Marsh.


It is anticipated that an application will be made to the TSX Venture Exchange
Inc. in the near future to delist the trading of the common shares of Kootenay.


The above disclosure contains certain forward-looking statements that involve
substantial known and unknown risks and uncertainties. These forward-looking
statements are subject to numerous risks and uncertainties, certain of which are
beyond the Corporation's control, including: the impact of general economic
conditions in Canada, industry conditions, increased competition, the lack of
available qualified personnel or management, equipment failures, fluctuations in
product prices and in foreign exchange or interest rates and stock market
volatility. The Corporation'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 the Corporation will derive there from.