Arsenal Announces Closing of Financing

NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION TO UNITED STATES
NEWSWIRES.


Arsenal Energy Inc. (TSX:AEI) (FRANKFURT:A1E) ("Arsenal") is pleased to announce
that it has closed its previously announced bought deal equity financing with
Wellington West Capital Markets Inc. (the "Underwriter") pursuant to which the
Underwriter purchased on a "bought deal" basis 11,283,000 common shares ("Common
Shares") (including 1,863,000 Common Shares upon exercise of an over allotment
option) at a subscription price of $0.85 per share and 3,000,000 Common Shares
on a "flow-through share" basis ("Flow-Through Share") at a subscription price
of $1.00 per share for aggregate gross proceeds of (Cdn) $12,590,550.


Gross proceeds from the sale of the Flow-Through Shares will be used to incur
Canadian Exploration Expenses ("CEE") for the purposes of the Income Tax Act
(Canada) and such CEE will be renounced for the 2010 taxation year. The net
proceeds from the sale of the Common Shares will be used to initially reduce
debt, fund Arsenal's ongoing capital program and for general corporate purposes.


Arsenal is a junior oil and gas company engaged in the exploration for, and
development and production of natural gas and oil reserves primarily in Alberta
and Saskatchewan and North Dakota, U.S.A. Arsenal's common shares trade on the
Toronto Stock Exchange under the symbol "AEI". Arsenal now has 134,744,890
Common Shares outstanding.


Certain statements and information contained in this press release, including
but not limited to statements regarding the use of proceeds contain
forward-looking statements. All statements other than statements of historical
fact may be forward looking statements. These statements, by their nature, are
subject to numerous risks and uncertainties, some of which are beyond Arsenal's
control including the effect of general economic conditions, industry
conditions, changes in regulatory and taxation regimes, volatility of commodity
prices, escalation of operating and capital costs, currency fluctuations, the
availability of services, imprecision of reserve estimates, geological,
technical, drilling an processing problems, environmental risks, weather, the
lack of availability of qualified personnel or management, stock market
volatility, the ability to access sufficient capital from internal and external
sources and competition from other industry participants for, among other
things, capital, services, acquisitions of reserves, undeveloped lands and
skilled personnel that may cause. actual results or events to differ materially
from those anticipated in the forward looking statements. Such forward-looking
statements although considered reasonable by management at the time of
preparation, may prove to be incorrect and actual results may differ materially
from those anticipated in the statements made and should not unduly be relied
on. These statements speak only as of the date of this press release. Arsenal
does not intend and does not assume any obligation to update these
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable law. Arsenals business is
subject to various risks that are discussed in its filing on the System for
Electronic Document Analysis and Retrieval (SEDAR).


For further information on Arsenal, please visit our website at
www.arsenalenergy.com, e-mail [e-mail].