Storm Cat Energy Corporation Receives Shareholder Approval of Series B Convertible Debt Placement



    DENVER and CALGARY, Alberta, March 29 /CNW/ -- Storm Cat Energy
Corporation (Amex:   SCU; TSX: SME) announced that, at a shareholder meeting
held today, it received the disinterested shareholder approval required for
the Company to proceed with the closing of its US$31.66 million Series B
convertible note offering in a private placement pursuant to Regulation D of
the Securities Act of 1933, as amended, and exemptions from Canadian
prospectus and registration requirements under National Instrument 45-106. 
The resolution, as described in the Company's February 28, 2007 Information
Circular, received the support of approximately 89% of the shares represented
and eligible to be voted at the meeting.  The notes initially will be
convertible into 27,059,829 Storm Cat common shares at a price of US$1.17 per
share, subject to adjustments in accordance with the terms of the notes. The
Company may force the conversion of the notes at any time after 18 months if
Storm Cat's common shares trade above US$2.05, as may be adjusted, for 20 days
within a period of 30 consecutive trading days.
    The Company plans to use the net proceeds from the sale of the Series B
notes to fund its 2007 capital expenditure budget requirements.

    
    About Storm Cat Energy
    
    Storm Cat Energy is an independent oil and gas company focused on the
pursuit, exploration and development of large unconventional gas reserves from
fractured shales, coal beds and tight sand formations.  The Company has
producing properties in Wyoming's Powder River Basin, and exploitation and
development acreage in Canada, Arkansas and Alaska.  The Company's shares
trade on the American Stock Exchange under the symbol "SCU" and in Canada on
the Toronto Stock Exchange under the symbol "SME."

    
    Storm Cat Energy Corporation
    Keith Knapstad
    Acting President and Chief Executive Officer

    /s/ Keith Knapstad

    Company Contact:
    Paul Wiesner, Chief Financial Officer
    Phone: 87-STORMCAT
    www.stormcatenergy.com

    Forward-looking Statements
    

    This press release contains certain "forward-looking statements," as
defined in the United States Private Securities Litigation Reform Act of 1995,
and within the meaning of Canadian securities legislation, relating to the
proposed use of proceeds.  Forward-looking statements are statements that are
not historical facts; they are generally, but not always, identified by the
words "expects," "plans," "anticipates," "believes," "intends," "estimates,"
"projects," "aims," "potential," "goal," "objective," "prospective," and
similar expressions, or that events or conditions "will," "would," "may,"
"can," "could" or "should" occur.  Forward-looking statements are based on the
beliefs, estimates and opinions of Storm Cat's management on the date the
statements are made and they involve a number of risks and uncertainties.
Consequently, there can be no assurances that such statements will prove to be
accurate and actual results and future events could differ materially from
those anticipated in such statements.  Storm Cat undertakes no obligation to
update these forward-looking statements if management's beliefs, estimates or
opinions, or other factors, should change.  Factors that could cause future
results to differ materially from those anticipated in these forward-looking
statements include, but a change in the use of proceeds, the volatility of
natural gas prices, the possibility that exploration efforts will not yield
economically recoverable quantities of gas, accidents and other risks
associated with gas exploration and development operations, the risk that the
Company will encounter unanticipated geological factors, the Company's need
for and ability to obtain additional financing, the possibility that the
Company may not be able to secure permitting and other governmental clearances
necessary to carry out the Company's exploration and development plans, and
the other risk factors discussed in greater detail in the Company's various
filings on SEDAR (www.sedar.com) with Canadian securities regulators and its
filings with the U.S. Securities and Exchange Commission, including the
Company's Form 10-K for the fiscal year ended December 31, 2006.
    NO STOCK EXCHANGE HAS REVIEWED OR ACCEPTS RESPONSIBILITY FOR THE ADEQUACY
OR
    ACCURACY OF THIS NEWS RELEASE.





For further information:

For further information: William Kent, Director, Investor Relations of 
Storm Cat Energy Corporation, +1-303-991-5070 Web Site:
http://www.stormcatenergy.com

Organization Profile

STORM CAT ENERGY CORPORATION

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