Storm Cat is in negotiations with its existing lenders to securesufficient debtor-in-possession (DIP) financing. Under Chapter 11, andassuming the DIP financing negotiations are successful, Storm Cat expects itwill continue, without undue interruption, its operations in the ordinarycourse of business, and intends to file a reorganization plan with the U.S.Bankruptcy Court as soon as practicable. As previously reported, the Companyhas engaged Parkman Whaling LLC for the purpose of assisting the Company inexploring strategic business alternatives as well as Alvarez & Marsal, aturnaround and restructuring firm, for the purpose of assisting the Companywith its restructuring efforts.

About Storm Cat Energy

Storm Cat Energy is an independent oil and gas company focused on theexploration, production and development of large unconventional gas reservesfrom fractured shales, coal beds and tight sand formations and, secondarily,from conventional formations. The Company has producing properties inWyoming's Powder River Basin and Arkansas' Arkoma Basin and exploration anddevelopment acreage in Canada. The Company's shares trade on the AmericanStock Exchange under the symbol "SCU" and in Canada on the Toronto StockExchange under the symbol "SME."

Forward-looking Statements

This press release contains certain "forward-looking statements", asdefined in the United States Private Securities Litigation Reform Act of 1995,and within the meaning of Canadian securities legislation, relating topotential future production and growth, proposed new wells and infrastructureimprovements affecting the Company's operations. Forward-looking statementsare statements that are not historical facts; they are generally, but notalways, 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 statementsare based on the beliefs, estimates and opinions of Storm Cat's management onthe date the statements are made and they involve a number of risks anduncertainties. Consequently, there can be no assurances that such statementswill prove to be accurate and actual results and future events could differmaterially from those anticipated in such statements. Storm Cat undertakes noobligation to update these forward-looking statements if management's beliefs,estimates or opinions, or other factors, should change. Factors that couldcause future results to differ materially from those anticipated in theseforward-looking statements include, but are not limited to: (i) the Company'sability to continue as a going concern; (ii) the ability of the Company tooperate pursuant to the terms of the debtor-in-possession facility; (iii) theCompany's ability to obtain court approval with respect to motions in theChapter 11 proceeding prosecuted by it from time to time; (iv) the ability ofthe Company to develop, prosecute, confirm and consummate one or more plans ofreorganization with respect to the Chapter 11 cases; (v) risks associated withthird parties seeking and obtaining court approval to terminate or shorten theexclusivity period for the Company to propose and confirm one or more plans ofreorganization, for the appointment of a Chapter 11 trustee or to convert thecases to Chapter 7 cases; (vi) the ability of the Company to obtain andmaintain normal terms with vendors and service providers; (vii) the Company'sability to maintain contracts that are critical to its operations; (viii) thepotential adverse impact of the Chapter 11 cases on the Company's liquidity orresults of operations; (ix) the ability of the Company to fund and execute itsbusiness plan; (x) the ability of the Company to attract, motivate and/orretain key executives and employees; (xi) the ability of the Company toattract and retain customers and (xii) the other risk factors discussed ingreater detail in the Company's various filings on SEDAR (www.sedar.com) withCanadian securities regulators and its filings with the U.S. Securities andExchange Commission, including the Company's Form 10-K for the fiscal yearended December 31, 2007.

SOURCE Storm Cat Energy Corporation