June 05, 2006 14:11 ET

Arapahoe Energy Enters into Letter of Intent with Sweet Grass First Nation to Explore and Develop the 43,000 Acre Reserve in Southwest Saskatchewan

CALGARY, ALBERTA--(CCNMatthews - June 5, 2006) -

Jeffrey L. Standen reports,

Arapahoe Energy Corporation ("Arapahoe" or the "Corporation") (TSX VENTURE:AAO) announces that it has entered into a Letter of Intent dated May 23, 2006 with the Sweet Grass First Nation. The Letter of Intent when approved by the Sweet Grass Band Council and Indian Oil & Gas Canada will allow Arapahoe the exclusive right, for a minimum of five (5) years, to explore and develop oil and natural gas reserves on the entire reserve (approximately 43,000 acres). The Sweet Grass First Nation is located approximately five (5) miles east of the Poundmaker First Nation where Arapahoe is currently active in exploring and developing oil and natural gas reserves.

Arapahoe is a junior oil and gas exploration company engaged in the exploration, development and production of oil and natural gas in Western Canada. Arapahoe's primary focus is on exploring and developing Canadian First Nation Lands. Currently Arapahoe has agreements in place to explore and develop lands on the Tsuu T'ina First Nation (Sarcee Area) immediately west of the City of Calgary and in south western Saskatchewan on the Poundmaker Cree First Nation and a portion of the Little Pine First Nation.

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

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