Painted Pony Petroleum Ltd. Increases Bought Deal Financing to $80 Million

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


Painted Pony Petroleum Ltd. ("Painted Pony" or the "Corporation") (TSX
VENTURE:PPY.A)(TSX VENTURE:PPY.B) is pleased to announce that, in connection
with the previously announced bought deal offering of Class A shares (the "Class
A Shares"), the Corporation and the syndicate of underwriters co-led by Cormark
Securities Inc. and FirstEnergy Capital Corp., and including Wellington West
Capital Markets Inc., CIBC World Markets Inc., and RBC Capital Markets have
agreed to increase the size of the offering to an aggregate of 7,620,000 Class A
Shares at an issue price of $10.50 per Class A Share for aggregate gross
proceeds to Painted Pony of $80,010,000 (the "Offering").


The net proceeds of the Offering will be used to fund a portion of the
Corporation's capital program and for general corporate purposes.


The Class A Shares shall be offered in all provinces of Canada (other than
Quebec) by way of short form prospectus, and in the U.S. on a private placement
basis pursuant to exemptions from registration requirements. The closing of the
Offering is expected to occur on February 17, 2011, and is subject to certain
conditions, including, but not limited to, the receipt of all necessary
regulatory approvals, including the approval of the TSX Venture Exchange.


Painted Pony is a junior Canadian oil and gas exploration company that trades on
the TSX Venture Exchange under the symbols "PPY.A" and "PPY.B" respectively.


Advisory

Certain information regarding Painted Pony set forth in this news release,
including the closing of the Offering, the use of proceeds of the Offering and
management's assessment of Painted Pony's future plans and operations may
constitute forward-looking statements under applicable securities laws and
necessarily involve substantial known and unknown risks and uncertainties. These
forward-looking statements are subject to numerous risks and uncertainties,
certain of which are beyond Painted Pony's control, including without
limitation, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of markets,
industry conditions, volatility of commodity prices, environmental risks, the
lack of availability of qualified personnel or management, inability to obtain
drilling rigs or other services, capital expenditure costs, including drilling,
completion and facility costs, unexpected decline rates in wells, wells not
performing as expected, stock market volatility, delays resulting from our
inability to obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources, the impact of general
economic conditions in Canada, the United States and overseas, changes in laws
and regulations (including the adoption of new environmental laws and
regulations) and changes in how they are interpreted and enforced, increased
competition, fluctuations in foreign exchange or interest rates, stock market
volatility and market valuations of companies with respect to announced
transactions and the final valuations thereof. Readers are cautioned that the
foregoing list of factors is not exhaustive. Painted Pony's actual results,
performance or achievement could differ materially from those expressed in, or
implied by, these forward-looking statements and, accordingly, no assurance 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, including the
amount of proceeds, that the Corporation will derive therefrom. Readers are
cautioned that the foregoing list of factors is not exhaustive. All subsequent
forward-looking statements, whether written or oral, attributable to the
Corporation or persons acting on its behalf are expressly qualified in their
entirety by these cautionary statements.


Additional information on these and other factors that could affect Painted
Pony's operations and financial results are included in reports on file with
Canadian securities regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com) or Painted Pony's website (www.paintedpony.ca).


The forward-looking statements contained in this document are made as at the
date of this news release and Painted Pony does not undertake any obligation to
update publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise, except as
may be required by applicable securities laws.