North Peace Announces Bought Deal Financing for Gross Proceeds of $10 million

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION
OF U.S. SECURITIES LAW.


North Peace Energy Corp. ("North Peace" or the "Company") (TSX VENTURE:NPE) is
pleased to announce that it has entered into an agreement to sell, on a bought
deal basis, 18,200,000 units ("Units") at a price of $0.55 per Unit to
underwriters co-led by GMP Securities L.P. and Genuity Capital Markets (the
"Underwriters") for gross proceeds to North Peace of approximately $10 million.


Each Unit consists of one common share and one half of one common share purchase
warrant ("Warrant") of the Company. Each whole Warrant entitles the holder to
acquire one common share of the Company at a price of $0.75 per share for a
period of 18 months from the closing date of the offering (subject to an
accelerated exercise after six months if the common shares trade above $1.00 per
share for 20 consecutive trading days).


The Underwriters have been granted an option to purchase up to 2,730,000
additional Units exercisable in whole or in part at any time up to 48 hours
prior to closing.


Closing of the offering is scheduled for June 23, 2009 and is subject to
customary conditions including receipt of stock exchange approvals. The
securities issued pursuant to the offering will be subject to a four-month hold
period from the date of closing under applicable Canadian securities laws.


The majority of the net proceeds from the offering will be used to fund the
expansion of the Company's Cyclic Steam Stimulation ("CSS") pilot project
including the drilling of two additional horizontal CSS wells, engineering for a
3,000 bbls/d pilot expansion and for operations in respect of the CSS pilot.


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy the securities in any jurisdiction. The securities offered have
not and will not be registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") or any state securities laws and may not
be offered or sold in the United States except in certain transactions exempt
from the registration requirements of the U.S. Securities Act and applicable
states securities laws.


About North Peace

North Peace has an early stage in-situ oil sands play in northern Alberta with
an estimated 2 to 3.1 billion barrels of Discovered Petroleum
Initially-In-Place. The Company has a 100% working interest in 86,400 acres of
Crown oil sands leases in the Peace River area. The lands have the benefit of
over 300 legacy logs and are surrounded by accessible oil and gas production
infrastructure. The target Bluesky zone is a regional sand, deposited in a near
shore marine environment at approximately 400 metres in depth. The initial focus
area has approximately 22 sections with 10 to 16 metres of oil-bearing
thickness, technically sufficient to advance a 30,000 bbl/d commercial project.
North Peace is currently advancing the development of its resource using Cyclic
Steam Stimulation, a robust and proven in-situ thermal recovery process. The
Company is currently operating a two well CSS pilot on its lands.


Discovered Petroleum Initially-In-Place

Discovered Petroleum Initially-In-Place (equivalent to Discovered Resources) is
that quantity of petroleum that is estimated, as of a given date, to be
contained in known accumulations prior to production. The recoverable portion of
Discovered Petroleum Initially-In-Place includes production, reserves, and
contingent resources. There is no certainty that the Discovered Petroleum
Initially-In-Place will ever be produced.


Forward-Looking Statements:

Certain statements contained in this news release constitute forward-looking
statements that involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from those
anticipated in such forward-looking statements. The forward-looking statements
contained in this news release are based on a number of expectations and
assumptions that may prove to be incorrect. No assurance can be given that these
expectations will prove to be correct and such forward-looking statements
included in this release should not be unduly relied upon. Actual results could
differ materially as a result of changes in North Peace's plans, changes in
commodity prices, regulatory changes, general economic, market and business
conditions as well as production, development and operating performance and
other risks associated with oil and gas operations including anticipated success
of resource prospects and the expected characteristics of resource prospects;
anticipated capital requirements, project rates of return and estimated project
life; estimates of original discovered resource; estimates of recovery factors;
lack of diversification; and overall technical and economic feasibility of the
Company's project. These statements speak only as of the date of this release or
as of the date specified in the documents accompanying this release, as the case
may be. The Company undertakes no obligation to publicly update or revise any
forward-looking statements except as expressly required by applicable securities
laws.