Grey Wolf Exploration Inc.

Grey Wolf Exploration Inc.

November 08, 2007 15:15 ET

Grey Wolf Exploration Inc. Announces $20 Million Financing

CALGARY, ALBERTA--(Marketwire - Nov. 8, 2007) -


Grey Wolf Exploration Inc. ("Grey Wolf") (TSX:GWE) is pleased to announce that it has entered into an agreement with a syndicate of underwriters, led by CIBC World Markets Inc., under which they have agreed to sell pursuant to a short form prospectus 7,844,000 flow-through common shares ("Flow-Through Common Shares") at a price of $2.55 per Flow-Through Common Share, for gross proceeds to Grey Wolf of approximately $20 million (the "Offering").

Grey Wolf has also granted the underwriters an option (the "Over-Allotment Option") to sell up to an additional 1,176,600 Flow-Through Common Shares for additional gross proceeds of approximately $3 million.

Net proceeds of this Offering will be used to fund the drilling of six gross (6.0 net) exploratory wells, the majority of which will be drilled during this winter's drilling season, and participation in 3-D seismic programs. The exploratory drilling is comprised of three wells in Grey Wolf's new Petitot area, two wells in its Valhalla area and one well located in Widewater. Drilling is expected to commence on the Petitot prospects as soon as ground conditions permit.

Closing is expected to occur on or about November 29, 2007 and is subject to certain conditions including, but not limited to, the receipt of all necessary approval, including the approval of the Toronto Stock Exchange.

Certain statements contained herein constitute forward-looking statements, including statements concerning the anticipated closing date of the Offering and the anticipated use of proceeds. We believe the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. Closing could be delayed if Grey Wolf cannot obtain necessary regulatory approvals within anticipated timelines and will not be completed unless certain conditions customary for transactions of this kind are satisfied.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Grey Wolf is an Alberta-based oil and natural gas company involved in the development and production of natural gas and crude oil in the Western Canadian Sedimentary Basin. Its common shares trade on the Toronto Stock Exchange under the symbol "GWE".

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