Cirrus Energy Corporation announces "bought deal" financing

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION

IN THE UNITED STATES/

CALGARY, June 23 /CNW/ - Cirrus Energy Corporation ("Cirrus" or the "Company") (TSX-V: CYR.V) 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 purposes.

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.

Contacts

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: www.cirrusenergy.ca
Telephone: (403) 216-5030
Facsimile: (403) 265-9530