LongBow Energy Corp.

LongBow Energy Corp.

January 16, 2007 18:46 ET

LongBow Agrees to Acquire Camdel Energy Inc.

CALGARY, ALBERTA--(CCNMatthews - Jan. 16, 2007) - LongBow Energy Corp. (TSX VENTURE:LBV) ("LongBow") announced today that it has agreed to acquire all of the issued and outstanding shares of Camdel Energy Inc, a private company, by way of an amalgamation under the Business Corporations Act (Alberta) or similar business combination, subject to obtaining all necessary regulatory and shareholder approvals and subject to the completion of due diligence. Under the proposed acquisition, LongBow will issue 1.26 of its common shares (at a deemed value of $0.07 per share) for each issued and outstanding common share of Camdel. If the transaction is completed, LongBow will issue an aggregate of approximately 11,425,950 common shares in exchange for all of the issued and outstanding Camdel common shares, and post closing, will have approximately 160,670,200 issued and outstanding common shares.

The definitive amalgamation agreement to be entered into by LongBow and Camdel will be subject to a number of conditions, including stock exchange approval and the approval of the shareholders of Camdel at a meeting expected to be held in March 2007. If all necessary approvals are obtained and all other conditions to the completion of the transaction are satisfied or waived, the amalgamation is expected to be completed by March 31, 2007. Certain shareholders and directors of Camdel, holding approximately 60% of the issued Camdel shares, have agreed to enter into agreements with LongBow confirming their support for the proposed amalgamation. LongBow and Camdel have each agreed, under certain circumstances, to pay a termination fee to the other party if the business combination is not completed.

LongBow is a junior oil and natural gas company based in Calgary, Alberta with properties located in Alberta, British Columbia, and Saskatchewan. Upon completion, the Camdel acquisition will add a number of operated, significant working interest, high impact areas of concentration to LongBow's drilling inventory.

Certain statements contained herein may constitute forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe that the expectations reflected in the forward-looking statements are reasonable based upon management's current views but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. No assurance can be given that actual results, performance or achievement expressed in, or implied by these forward-looking statements will occur, or if they do, that any benefits may be derived from them. Past results have been applied in drawing a conclusion or making a forecast or projection set out in the forward-looking information.

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