Pine Cliff Energy Ltd. Announces Rights Offering

    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/

    CALGARY, Aug. 20 /CNW/ - Pine Cliff Energy Ltd. ("Pine Cliff" or "the
Company") (www.pinecliffenergy.com) (TSX Venture: PNE) is pleased to announce
that it intends to proceed with a rights offering to shareholders of Pine
Cliff, the material terms which are still to be finalized. Pine Cliff's
shareholders would receive rights to subscribe for Common Shares, and would
have an additional subscription privilege to subscribe for any Common Shares
not taken up on the exercise of rights. In accordance with the policies of the
TSX Venture Exchange (the "Exchange"), the rights will be listed for trading.
    Pine Cliff anticipates it will use the net proceeds of the rights
offering to fund Pine Cliff's exploration, development, acquisitions and
farm-in commitments in South America and Canada and for general corporate
purposes.
    Pine Cliff also announces that it will no longer proceed with the private
placement financing which was announced on July 4, 2007. The general downturn
in the market has made this type of a transaction difficult at acceptable
pricing.
    The securities to be offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the
securities in any State in which such offer, solicitation or sale would be
unlawful.
    Further information relating to Pine Cliff may be found on www.sedar.com
as well as on Pine Cliff's website at www.pinecliffenergy.com or by contacting
George F. Fink, President and CEO, Randy M. Jarock, COO, or Garth E. Schultz,
Vice President - Finance and CFO at (403) 269-2289 or by fax at (403)
265-7488.

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

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For further information:

For further information: George F. Fink, President and CEO, Randy M.
Jarock, COO, or Garth E. Schultz, Vice President - Finance and CFO at (403)
269-2289 or by fax at (403) 265-7488