Adjusted Cost Base of KOV and Loon Corp Shares

A plan of arrangement under the Business Corporation Act (Alberta) (the
"Arrangement") of Loon Energy Inc. was approved by securityholders on December
9, 2008 and was implemented on December 10, 2008. Under the Arrangement, the
assets of Loon Energy Inc. in Colombia and Peru were transferred to Loon Energy
Corporation ("Loon Corp") (TSX VENTURE:LNE), a new company set up for the
purpose of receiving the assets, and the name of Loon Energy Inc. was changed to
Kulczyk Oil Ventures Inc. ("KOV"). KOV was halted from trading on the TSX
Venture Exchange on December 10, 2008 and was delisted on December 19, 2008, the
day upon which the common shares of Loon Corp commenced trading on the TSX
Venture Exchange under the trading symbol "LNE". It is the intention of KOV to
apply to list its common shares on the Warsaw Stock Exchange in 2009.


Loon Energy Inc. stated in its information circular for the Arrangement that it
would advise Canadian shareholders of a proportionate allocation of the
aggregate adjusted cost base ("ACB") of the KOV common shares and Loon Corp
common shares relative to their fair market values. Effective as of the
implementation of the Arrangement, KOV took up and paid $0.25 per share for
18,565,759 common shares of KOV, that were put to KOV by shareholders pursuant
to the Arrangement. The shares of Loon Corp commenced trading on December 19,
2008 and during the four trading days ended December 24, 2008, a total volume of
774,740 shares traded at an average price of $0.055 per share.


The relevant provisions of the Income Tax Act (Canada) require that the ACB for
the Loon Energy Inc. shares prior to the Arrangement be allocated to the KOV
shares and the Loon Corp shares on a pro rata basis based on their relative fair
market value on the date of the Arrangement. Based on the values set out above
($0.25 per KOV share and $0.055 per Loon Corp share), the management of Loon
Corp and of KOV believe that it would be reasonable for a shareholders to
allocate 82% of such ACB to KOV shares and 18% of such ACB to Loon Corp shares.


The above information is intended as guidance only and is provided solely for
the convenience of Canadian shareholders. Neither KOV nor Loon Corp provide any
representation or warranty with respect to the acceptability to the Canada
Revenue Agency of the ACB allocation suggested above. KOV and Loon Corp strongly
recommend that shareholders seek their own professional advice when determining
the appropriate ACB.


Some of the statements contained in this release may be forward-looking
statements. Forward-looking statements may include, but are not limited to,
statements concerning estimates of recoverable hydrocarbons, expected
hydrocarbon prices, expected costs, statements relating to the continued
advancement of the Company's projects and other statements which are not
historical facts. When used in this document, and in other published information
of the Company, the words such as "could," "estimate," "expect," "intend,"
"may," "potential," "should," and similar expressions are indicative of a
forward-looking statement. Although the Company believes that its expectations
reflected in the forward-looking statements are reasonable, the potential
results suggested by such statements involve risk and uncertainties and no
assurance can be given that actual results will be consistent with these
forward-looking statements. Various factors, which could cause actual results to
differ from these forward-looking statements, include the potential that the
Company's projects will experience technical and mechanical problems, geological
conditions in the reservoir which may negatively impact levels of oil and gas
production and changes in product prices and other risks not anticipated by the
Company or disclosed in the Company's published material. Since forward-looking
statements address future events and conditions, by their very nature, they
involve inherent risks and uncertainties.