Galleon closes previously announced flow-through financing

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

CALGARY, Nov. 2 /CNW/ - Galleon Energy Inc. ("Galleon") is pleased to announce that it has closed its previously announced flow-through financing of 2,200,000 flow-through shares at a price of $7.80 per flow-through share for aggregate gross proceeds of $17,160,000. The offering was completed on a bought deal, private placement basis through an underwriting syndicate co-led by GMP Securities L.P. and Cormark Securities Inc. and including, Scotia Capital Inc., TD Securities Inc., Macquarie Capital Markets Canada Ltd., FirstEnergy Capital Corp., HSBC Securities Canada Inc., Thomas Weisel Partners Canada Inc. and Maison Placements Canada Inc.

The proceeds from the issuance of the Flow-Through Shares will be used to incur eligible Canadian Exploration Expenses which will be renounced to subscribers effective on or before December 31, 2009.

The Class A Shares issued have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption from the registration requirements.

ADVISORY: This press release contains forward-looking statements. More particularly, this press release contains statements concerning the use of the net proceeds of the offering. Although Galleon believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Galleon can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The specific intended use of the net proceeds of the offering by Galleon might change if the board of directors of Galleon determines that it would be in the best interests of Galleon to deploy the proceeds for some other purpose, and which may be subject to various risks including risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Galleon's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), at Galleon's website (www.galleonenergy.com).

The forward-looking statements contained in this press release are made as of the date hereof and Galleon undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

%SEDAR: 00019659E

SOURCE GALLEON ENERGY INC.

For further information: For further information: SEE OR CONTACT (403) 261-6012: Steve Sugianto, President and Chief Executive Officer, or Glenn R. Carley, Executive Chairman, or Shivon Crabtree, VP Finance and Chief Financial Officer.

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GALLEON ENERGY INC.

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