Primary Petroleum Announces C$10,008,000 Million Bought Deal Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


Primary Petroleum Corporation ("Primary" or the "Company") (TSX
VENTURE:PIE)(OTCQX:PETEF) is pleased to announce that it has entered into an
agreement with a syndicate of underwriters to acquire, on a "bought deal" basis,
13,900,000 common shares at a price of C$0.72 per common share for gross
proceeds of C$10,008,000 (the "Offering"). The syndicate will be led by
Macquarie Capital Markets Canada Ltd., and includes Casimir Capital Ltd. (the
"Underwriters"). In addition, the Company has granted the Underwriters an
over-allotment option (the "Over-allotment Option") to acquire up to an
additional 2,085,000 common shares at a price of C$0.72 per common share. The
Over-allotment Option is exercisable, in whole or in part, by the Underwriters,
in their sole discretion, at any time up to 30 days after the Closing Date. If
the Over-allotment Option is exercised in full, additional gross proceeds will
be C$1,501,200 for total gross proceeds of C$11,509,200.


The Offering will be made pursuant to a short form prospectus to be filed by
Primary with securities regulators in each of the provinces of Canada, other
than the Province of Quebec. Closing of the Offering is expected to occur on or
about February 28, 2011. The Offering is subject to receipt of any necessary
regulatory and stock exchange approvals. The Company plans to use the proceeds
raised to fund the Company's exploration and development of both its Montana and
Alberta oil properties. In Montana, the Company will be advancing its Pondera
Teton oil prospect in the Alberta Basin Bakken Fairway in western Montana by
continuing its land acquisition strategy and executing a proprietary 3D seismic
program to further delineate the prospects in advance of moving forward with a
drilling program later in 2011. In addition, the Company will be funding its
portion of a proprietary 3D seismic program on its Saturn oil prospect in
Daniels County, Montana and may participate in drilling test wells pursuant to
its Joint Venture with its Industry Partner (see press release December 17,
2010). In Alberta, the Company intends to commence drilling in Q2 this year, on
its Long Coulee oil prospect located in southern Alberta. Remaining funds will
be used for general corporate purposes. 


Mike Marandino, President and CEO of Primary Petroleum stated, "While we are
still in discussions with Industry in seeking out the right joint venture
partner, this capital raise provides us with a real opportunity to advance the
Company's business plans on our own terms."


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of securities in any
state in the United States in which such offer, solicitation or sale would be
unlawful. The securities referred to herein have not been and will not be
registered under the United States Securities Act of 1933, as amended, and may
not be offered or sold in the United States absent registration or an applicable
exemption from registration requirements.


About Primary Petroleum Corporation: Primary is a junior oil and gas company
engaged in exploration and development activities in Montana and Alberta. The
Company's mandate is to continue to acquire strategic land positions of merit in
the Sedimentary Basin of the Western United States and Canada and seek out
qualified industry partners to exploit and develop them. The Company's public
filings may be found at www.sedar.com. To find out more about Primary Petroleum
visit our website at www.primarypetroleum.com. 


Investors are cautioned that this press release contains forward looking
information. Such statements or information ("forward-looking statements") are
generally identifiable by the terminology used such as "anticipate", "believe",
"intend", "plan", "expect", "estimate", "budget", "outlook" or other similar
words. More particularly, this press release contains statements concerning the
closing of the Offering and the intended use of proceeds. The closing of the
offering could be delayed if the Company is not able to obtain the necessary
regulatory and stock exchange approvals on the planned timeline. In addition,
the Underwriting Agreement contains terms which allow the Underwriters to
terminate the financing upon the occurrence of certain stated events. The
Offering will not be completed at all if these approvals are not obtained or
some other condition to the closing is not satisfied. Accordingly, there is a
risk that the Offering will not be completed within the anticipated time or at
all. The intended use of proceeds and the timing of expenditures to develop the
Company's oil properties will be impacted by a number of factors, including
information obtained from the various activities conducted. Some of the factors
may be beyond the control of the Company and the proceeds may not be spent as
intended. Although the Company believes that the expectations reflected in these
forward-looking statements are reasonable, undue reliance should not be placed
on them because the Company 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. The
forward-looking statements contained in this press release are made as of the
date hereof and the Company undertakes no obligations 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.