Arrow Energy Ltd. closes $0.5 million private placement



    TSX-V: AOF

    CALGARY, Jan. 11 /CNW/ - Arrow Energy Ltd. ("Arrow" or the "Company")
today announced that on December 31, 2007, it completed a non-brokered private
placement of common shares that consisted of 1,250,000 common shares issued on
a flow-through basis (the "Common Shares") for income tax purposes at $0.40
per share (the "Placement"). The gross proceeds of $500,000 are intended to be
used to finance exploration and development activities and for general
corporate purposes.
    Arrow is required to incur qualifying expenditures totalling $500,000 by
December 31, 2008 and has renounced this amount of Canadian Exploration
Expenses ("CEE") to subscribers effective December 31, 2007. The securities
issued will be subject to a four-month hold period from the date of closing.
Following completion of this placement, Arrow has 28,483,727 common shares
outstanding.
    In conjunction with the Placement, Arrow paid a finder's fee in the
amount of $20,000 to Northern Securities Inc. Pursuant to Policy 5.9 of the
Exchange and Ontario Securities Commission Rule 61-501 ("Rule 61-501"), the
Placement may be classified as a related-party transaction as a member of the
Company's board of directors (the "Related Party") subscribed for Common
Shares. Arrow has determined, however, that certain exemptions from the formal
valuation and minority shareholder approval requirements under Rule 61-501 are
applicable.

    Arrow is a Calgary-based junior resource company engaged in the
exploration, development and production of natural gas and oil in Alberta.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

    %SEDAR: 00017135E




For further information:

For further information: Investor Relations Contact: Phone: (403)
237-9996, Toll-free: 1-866-528-9996, Email:
investor.relations@arrow-energy.com, Web site: www.arrow-energy.com

Organization Profile

ARROW ENERGY LTD.

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