Arsenal Energy Announces $11 Million Equity Financing

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


Arsenal Energy Inc. (TSX:AEI) ("Arsenal") is pleased to announce that it has
entered into an agreement with Wellington West Capital Markets Inc. (the
"Underwriter") pursuant to which the Underwriter has agreed to place, on a
'bought deal' basis, 9,420,000 common shares ("Common Shares") at a price of
$0.85 per Common Share and 3,000,000 flow-through common shares ("Flow-Through
Shares") at a price of $1.00 per Flow-Through Share for aggregate gross proceeds
of $11,007,000 (the "Offering"). Arsenal has also granted the Underwriter an
option, exercisable in whole or in part, for a period commencing on the closing
of the Offering and ending 30 days following the closing date, to place up to an
additional 1,863,000 Common Shares at a price of $0.85 per Common Share for
additional gross proceeds of up to $1,583,550.


The 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 fund Arsenal's
ongoing capital program and for general working capital purposes. 


The securities are being offered in all provinces of Canada, other than Quebec,
by way of a short form prospectus, and in other jurisdictions pursuant to
applicable exemptions from registration and prospectus requirements. The
Offering is scheduled to close on or about February 25, 2010 and is subject to
the completion of formal documentation and regulatory approval, including the
approval of the Toronto Stock Exchange. For further details on the Offering
please contact either Arsenal or the Underwriter at the contact information
provided below.


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,
Saskatchewan and North Dakota. Arsenal's common shares trade on the Toronto
Stock Exchange under the symbol "AEI".


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy any securities of Arsenal in any jurisdiction in which such
offer, solicitation or sale would be unlawful. The securities to be offered have
not been and will not be registered under the United States Securities Act of
1933, as amended, or any state securities laws and may not be offered or sold
within the United States or to or for the account or benefit of a U.S. Person
absent registration or an applicable exemption from the registration
requirements of such Act or laws.


Certain statements and information contained in this press release, including
but not limited to statements regarding the expected closing date and the amount
and 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.
Arsenal's business is subject to various risks that are discussed in its filings
on the System for Electronic Document Analysis and Retrieval (SEDAR).


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