Ironhorse Oil Announces $3.5 Million Flow-Through Financing

CALGARY, ALBERTA--(Marketwire - Oct. 2, 2008) - THIS NEWS RELEASE IS Ironhorse Oil & Gas Inc. (TSX VENTURE: IOG.V) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Dundee Securities Corporation and including Blackmont Capital Inc. to issue, by way of a private placement, 1,683,000 flow-through common shares (the "Shares") on a bought deal basis at $2.08 per Share for gross proceeds of $3,500,640. Proceeds from the offering will be used to incur qualifying seismic and exploration drilling expenditures. The underwriters will be paid a cash fee of 6% of the gross proceeds of the offering.

Closing of the offering is expected to occur on or about October 23, 2008, and is subject to the receipt of all requisite regulatory and stock exchange approvals. The securities issued under the private placement will be subject to a four month hold period from the date of closing.

Ironhorse Oil & Gas Inc. is a Calgary-based junior oil and natural gas production company trading on the TSX Venture Exchange under the symbol "IOG".

This news release may contain forward-looking information that is subject to known and unknown risks, uncertainties and other factors. Readers are cautioned that actual future results, performance or achievements may be different from those expressed or implied in this release and the difference may be material.

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

Contacts

Rob H. Solinger
Ironhorse Oil & Gas Inc.
Vice-President, Finance & CFO
(403) 355-3620

Jim Wilson
Ironhorse Oil & Gas Inc.
Vice-President & Corporate Secretary
(403) 218-3210
Website: www.ihorse.ca