Silverwing Energy Inc. completes Tomahawk Farmin extension funding


    CALGARY, June 7 /CNW/ - Silverwing Energy Inc., ("Silverwing" or the
"Corporation") (TSX:SVW) advises that further to its press release dated
May 28, 2007 it has obtained an extension to the Tomahawk Farmin Agreement
(the "Farmin Agreement") to December 31, 2007 from Canadian Natural Resources
Limited ("CNRL") and Imperial Oil Resources ("IOR"). To obtain the extension,
Silverwing was required to provide payment to CNRL and IOR of $500,000 in
consideration of the Farmin Agreement extension (the "Extension Fee") and
place an additional $11,100,000 in an escrow account (the "Escrow Funds"). The
Escrow Funds can be drawn down on a pro-rata basis as Silverwing meets the
drilling commitments under the Farmin Agreement in 2007.
    Silverwing is pleased to announce that the funds to meet the Escrow Funds
condition and the Extension Fee condition have been secured from Quest Capital
Corp. ("Quest"), in the form of a secured credit facility (the "Credit
Facility") as further described in Silverwing's press release of May 28, 2007.
The terms of the Credit Facility have been revised to increase the facility to
$13 million from $12 million and proportionately increase the Quest standby
fee and non-refundable bonus payment to $1,105,000 payable in common shares of
Silverwing (the "Silverwing Shares"). The Silverwing Shares were priced at
$0.30 per share which is the anticipated price of the Units to be sold under
the Equity Offering noted below. 3,400,000 Silverwing Shares were issued to
Quest at the closing of the Credit Facility and the remaining 283,333
Silverwing Shares will be issued on June 13, 2007. In the event that the price
of the Units sold pursuant to the Equity Offering is below $0.30 per Unit,
Silverwing has agreed to issue to Quest such additional Silverwing Shares as
is necessary to make the total value of Silverwing Shares issued equal to
$1,105,000. Following the issuance of the aggregate 3,683,333 Silverwing
Shares to Quest pursuant to the foregoing, Quest will hold 9.8% of the then
issued and outstanding shares of Silverwing. As consideration for arranging
the Credit Facility, Jacob & Company Securities Inc. ("JCS") will receive
$325,000 as a corporate finance fee.
    Approximately $1,000,000 of the Credit Facility funds was required to be
paid by Silverwing to National Bank of Canada ("National Bank"), Silverwing's
primary lender, as a reduction of their outstanding credit facility with
National Bank in order to keep Silverwing onside of its financial covenants
under the National Bank facility. The remaining $75,000 will be used by
Silverwing for outstanding trade payables.
    Marketing initiatives for the previously announced equity financing
efforts are continuing to progress well (the "Equity Offering"). The
Corporation intends to use the proceeds of the Equity Offering, net of fees
and expenses, to pursue its development and exploration program in the
Tomahawk area of Alberta to fund working capital and to fully repay the Credit

    Recommendation of Silverwing's Special Committee

    The special committee of the Board of Directors of Silverwing (the
"Board") composed of Drew Tumbach, Robert Wagemakers and Geoff Waterman, each
of whom is free from any interest in the Equity Offering or the Credit
Facility and is unrelated to any of the parties involved in the Equity
Offering or the Credit Facility, further recommended that the Corporation
proceed with the revised Credit Facility and that, as a result of the deadline
to deposit the Escrow Funds by the further extension date of June 6, 2007,
Silverwing make an application to the TSX pursuant to Section 604(e) of the
TSX Company Manual for an exemption from the requirement to seek shareholder
approval on a determination of financial hardship, which has been subsequently
approved by the TSX. Based on this recommendation, the Board has determined
that Silverwing is currently in serious financial difficulty, that the revised
Credit Facility is designed to improve its financial position and that is
reasonable in the circumstances, and has approved the revised Credit Facility.

    Certain statements contained in this document are "forward-looking
statements". The projections, estimates and beliefs contained in such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause actual results or events to differ materially
from those anticipated in any forward-looking statements. Silverwing believes
the expectations reflected in those forward-looking statements are reasonable;
however Silverwing cannot provide any assurance that these expectations will
prove to be correct.

    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this news release.

    %SEDAR: 00023786E

For further information:

For further information: Silverwing Energy Inc., Oleh Wowkodaw,
President and Chief Executive Officer, (403) 538-5597, (403) 263-5549 (FAX),
Email:; or Silverwing Energy Inc., Terry O'Connor,
Senior Vice President, Business Development, (403) 538-5593, (403) 263-5549
(FAX), Email:; or Silverwing Energy Inc., Martin
Rude, Vice President, Finance and Chief Financial Officer, (403) 538-5591,
(403) 263-5549 (FAX), Email:

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