Loon Energy Corporation: Private Placement of Common Shares

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

Loon Energy Corporation (TSX VENTURE:LNE) ("Loon" or the "Corporation") is
pleased to announce that it has closed its previously announced non-brokered
private placement of 10 million common shares at an issue price of $0.10 per
common share for aggregate gross proceeds of $1 million (the "Private
Placement"). 


The net proceeds of the financing will be used to seek additional oil and gas
opportunities and for general corporate purposes.


The Private Placement remains subject to receipt of final acceptance from the
TSX Venture Exchange, which the Corporation expects to receive in due course.


The Corporation is relying on the exemptions found in section 5.5(c) and section
5.7(b) of Multilateral Instrument 61-101 - Protection of Minority Security
Holders in Special Transactions, which respectively exempt the Corporation from
obtaining a formal valuation or from obtaining minority shareholder approval in
connection with the Private Placement.


The common shares issued are subject to a hold period of four months plus a day
from the closing date, as required under applicable Canadian securities laws.
The common shares issued have not and will not be registered under the United
States Securities Act of 1933, as amended (the "Act") and may not be offered or
sold in the United States absent registration or an applicable exemption from
registration requirements of such Act. A cash commission of $2,500 was paid in
connection with the Private Placement.


Cautionary Note Regarding Forward-Looking Statements 

This news release may contain forward-looking statements relating to the
activities of Loon, including its intention to seek additional oil and gas
opportunities, which may not be historical facts. Readers are cautioned not to
place undue reliance on forward-looking statements, as there can he no assurance
that the plans, intentions or expectations upon which they are based will occur.
By their nature, forward-looking statements may involve numerous assumptions,
known and unknown risks and uncertainties, both general and specific, that
contribute to the possibility that the predictions, forecasts, projections and
other forward-looking statements will not occur, which may cause actual
performance and results in future periods to differ materially from any
estimates or projections of future performance or results expressed or implied
by such forward-looking statements. These assumptions, risks and uncertainties
include, among other things: the state of the economy in general and capital
markets in particular, investor interest in the business and future prospects of
Loon, the timely receipt of shareholder approvals and other required regulatory
and exchange approvals, competition for, among other things, capital,
acquisitions of reserves or undeveloped lands, skilled personnel, incorrect
assessments of the value of acquisitions and exploration and development
programs and the failure to realize the anticipated benefits of acquisitions.
Readers are cautioned that the foregoing lists of factors are not exhaustive. 


The forward-looking statements contained in this press release are made as of
the date of this press release. Except as required by law, Loon disclaims any
intention and assumes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise,
except as required by applicable securities law. Additionally, Loon undertakes
no obligation to comment on the expectations of, or statements made, by any
third parties in respect of the matters discussed above.