Cirrus Energy Corporation announces "bought deal" financing


    CALGARY, June 23 /CNW/ - Cirrus Energy Corporation ("Cirrus" or the
"Company") (TSX-V:CYR) is pleased to announce that it has entered into an
agreement to sell to a syndicate of underwriters, on a "bought deal" basis,
11.0 million common shares at a price of C$4.55 per common share for gross
proceeds of approximately C$50.1 million. The syndicate is led by Tristone
Capital Inc and includes BMO Capital Markets and FirstEnergy Capital Corp.
(the "Underwriters"). In addition, the Company has also granted to the
Underwriters an over-allotment option, exercisable in whole or in part at any
time prior to the closing date, to purchase that number of additional common
shares equal to 9% of the number of common shares sold pursuant to the
offering, at an issue price of $4.55 per common share. If the over-allotment
option is exercised in full, the gross proceeds of the offering will be C$54.6
million from the sale of 11.0 million common shares. The offering will be made
in the provinces of British Columbia, Alberta, Saskatchewan and Ontario by way
of short form prospectus. The offering is scheduled to close on or about July
17, 2008.

    Cirrus plans to use the net proceeds of this offering to fund the
exploration, appraisal and development of North Sea oil and gas assets, in
particular the recently acquired K10-Bravo oilfield and for general corporate

    This news release shall not constitute an offer to sell or the
solicitation of any offer to buy the securities in any jurisdiction. The
common shares may be offered or sold in other eligible foreign jurisdictions
and to U.S. buyers on a private placement basis pursuant to an applicable
exemption from registration requirements in Rule 144-A or Regulation D of the
United States Securities Act of 1933, as amended.

    Cirrus Energy Corporation is an international oil and gas company
headquartered in Calgary and currently has 63.0 million fully diluted common
shares outstanding prior to the closing of this transaction.

    Forward-Looking Statements

    This press release may include forward-looking statements including
opinions, assumptions, estimates and expectations of future production, cash
flow and earnings. When used in this document, the words "anticipate",
"believe", "estimate", "expect", "intent", "may", "project", "plan", "should"
and similar expressions are intended to be among the statements that identify
forward-looking statements. Forward-looking statements are subject to a wide
range of risks and uncertainties, and although the Company believes that the
expectations represented by such forward-looking statements are reasonable,
there can be no assurance that such expectations will be realized. Any number
of important factors could cause actual results to differ materially from
those in the forward-looking statements including, but not limited to, the
volatility of oil and gas prices, the ability to implement corporate
strategies, the state of domestic capital markets, the ability to obtain
financing, changes in oil and gas acquisition and drilling programs, operating
risks, production rates, reserve estimates, changes in general economic
conditions and other factors more fully described from time to time in the
reports and filings made by Cirrus with securities regulatory authorities.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    %SEDAR: 00021839E

For further information:

For further information: David Taylor, President and Chief Executive
Officer, Pamela Orr, Vice President Finance and Chief Financial Officer,
Cirrus Energy Corporation, Suite 350, 926 - 5th Avenue S.W., Calgary, Alberta,
T2P 0N7, Canada, Website:, Telephone: (403) 216-5030,
Facsimile: (403) 265-9530

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