Federman & Sherwood Announces a Correction to Its Prior Notice Regarding the Securities Class Action Lawsuit Against the Underwriters and Certain Directors of Cano Petroleum, Inc. (AMEX: CFW)

OKLAHOMA CITY, OK--(Marketwire - October 22, 2008) - On October 2, 2008, a class action lawsuit was filed in the United States District Court for the Southern District of New York against Defendants David W. Wehlmann, Gerald W. Haddock, Randall Boyd, Donald W. Niemiec, Robert L. Gaudin, William O. Powell, III, Canaccord Adams, Inc. and Canaccord Capital Corporation regarding information publicly disseminated by these Defendants with respect to Cano Petroleum, Inc. (AMEX: CFW). Federman and Sherwood issues this notice to correct its prior Press Release issued on October 9, 2008. The Complaint as filed on October 2, 2008 asserts violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, alleging that the Defendants issued a series of false and material misrepresentations regarding the Company's registration statement and prospectus filed with the SEC in connection with its Secondary Public Offering on June 26, 2008.

Plaintiff seeks to recover damages on behalf of the Class. If you are a member of the Class as described above, you may move the Court no later than Monday, December 8, 2008, to serve as a lead plaintiff for the Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.

If you wish to discuss this action, participate in this or any other lawsuit, or have any questions or concerns regarding this notice, or preservation of your rights, please contact:

Contact Information: William B. Federman FEDERMAN & SHERWOOD 10205 North Pennsylvania Avenue Oklahoma City, OK 73120 405-235-1560 Email to: wfederman@aol.com www.federmanlaw.com