Eaglewood Energy Inc.
TSX VENTURE : EWD

Eaglewood Energy Inc.

November 21, 2008 16:15 ET

Eaglewood Energy Inc.: Management Change and Issuance of Compensation Securities

CALGARY, ALBERTA--(Marketwire - Nov. 21, 2008) - Eaglewood Energy Inc. (the "Corporation" or "Eaglewood") (TSX VENTURE:EWD) is pleased to announce that Brad Hurtubise has been appointed President and Chief Executive Officer of Eaglewood. Hal Hemmerich has resigned from the position of President and Chief Executive Officer but continues to act as a director of Eaglewood. Mr Hurtubise will bring many years of energy capital market financing and advisory experience as well as oil and gas operating experience to the Corporation. He has spent the bulk of his career involved in energy investment banking with BMO Capital Markets and most recently at Tristone Capital. Mr Hurtubise has also spent several years managing energy companies as President of Grad and Walker Energy Corporation, as Chief Executive Officer of Westcastle Energy Trust and as an Executive Vice President of Direct Energy Marketing Limited.

Concurrently with this change of management, the Corporation desires to implement a new compensation program for management and key employees. The Corporation intends to issue an aggregate of 8,000,000 performance based warrants (the "Warrants") to the new incoming officer as well as to current officers and employees.

The terms of the Warrants are as follows:

- One quarter of the Warrants granted will vest on the later of: i) the date that is 6 months from the date of grant; or ii) the date that trading of the common shares of the Corporation closes at or above $0.85 per common share for 45 consecutive trading days. These Warrants will be exercisable at a price of $0.75 per common share.

- One quarter of the Warrants granted will vest on the later of: i) the date that is 12 months from the date of grant; or ii) the date that trading of the common shares of the Corporation closes at or above $1.10 per common share for 45 consecutive trading days. These Warrants will be exercisable at a price of $1.00 per common share.

- One quarter of the Warrants granted will vest on the later of: i) the date that is 18 months from the date of grant; or ii) the date that trading of the common shares of the Corporation closes at or above $1.40 per common share for 45 consecutive trading days. These Warrants will be exercisable at a price of $1.25 per common share.

- One quarter of the Warrants granted will vest on the later of: i) the date that is 24 months from the date of grant; or ii) the date that trading of the common shares of the Corporation closes at or above $2.00 per common share for 45 consecutive trading days. These Warrants will be exercisable at a price of $1.75 per common share.

The Warrants will expire on the earlier of: i) three years from the date of grant; and ii) 90 days after the holder ceases to be employed by the Corporation or its subsidiaries. Exercise of the Warrants is subject to the Corporation obtaining majority shareholder approval for the issuance, which approval the Corporation intends to obtain by written consents.

In addition to the issuance of the Warrants, the Corporation intends to issue up to 2,300,000 stock options pursuant to the Corporation's stock option plan exercisable at a price of $0.10 per share for a period of five years. Half of the options will vest one year from the date of grant and the other half will vest two years from the date of grant.



It is anticipated that the Warrants and options will be issued as follows:

Number of Number of
Party Position Warrants Options

Brad Hurtubise Incoming President and Chief 4,000,000 1,000,000
Executive Officer

Michael McGowan Chief Operating Officer 1,400,000 400,000

Chris Cornwell Exploration Manager 1,400,000 400,000

Bruce Apana Country Manager - Papua 800,000 300,000
New Guinea

Arlene Weatherdon Chief Financial Officer and 200,000 100,000
Corporate Secretary

Dan Kendrick Technical Advisor 200,000 100,000



Eaglewood also reported unaudited financial results for the three months ended September 30, 2008, being the first quarter of its new financial year. Complete details of the September 30, 2008 financial statements and related management's discussion and analysis can be found on SEDAR at www.sedar.com.

No Regulatory authority has approved or disapproved the content of this release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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