Longbow Resources Inc.
TSX VENTURE : LBR

Longbow Resources Inc.

October 15, 2007 19:15 ET

Longbow Resources Announces $6 Million in New Financings

CALGARY, ALBERTA--(Marketwire - Oct. 15, 2007) - Longbow Resources Inc. (TSX VENTURE:LBR) ("Longbow" or the "Company") is pleased to report that, even in this increasingly tight financing environment for Juniors, its previously announced (news releases dated July 30 and August 29, 2007) two part private placement of securities to Kisco LBR LLC ("Kisco") has been increased in response to the Company's expanded capital requirements for the balance of 2007 and early 2008. Subject to all necessary TSX Venture Exchange (the "Exchange") and shareholder approvals, Kisco has agreed to purchase, by way of two non-brokered private placements for gross proceeds of $6.0 million, the following securities of the Company:

(i) $1.7 million in principal amount of secured, convertible non-transferrable debentures (the "Debentures") and 750,000 transferable common share purchase warrants ("Warrants") in an initial private placement (the "Debenture Offering"), which will be subject to Exchange approval as well as certain other conditions. The Debentures will mature two years from the date of issue, will pay no interest, will vote on an "as if converted" basis and will be convertible to common shares of Longbow at $0.40 per common share. The Debentures will be repayable on demand in certain events and be secured by a floating charge against the assets of Longbow. In addition, if Longbow's common shares trade at $0.80 or above for a certain trading period while the Debentures are outstanding, the Company will have the right to require, in each 120 day period that the trading price threshold is achieved, that a certain percentage of the Debentures will be converted to common shares at the conversion price. Each Warrant will entitle the holder at its option to purchase an additional common share of the Company at a price of $0.40 for two years after closing of the Debenture Offering. Assuming full conversion of the Debentures (including full conversion or exercise of all securities previously issued to Kisco and others in a prior financing), Kisco would own approximately 54% of Longbow's issued and outstanding shares. As Kisco is a "control person" of the Company, the Debenture Offering is a related party transaction for the purposes of Exchange policies and applicable securities law, which is exempt from valuation and minority shareholder approval requirements. It is anticipated the Debenture Offering will close in mid-October, 2007 and such closing will occur independently of the proposed Unit Offering described below.

(ii) $1.3 million in principal amount of Debentures, $3 million in common shares at $0.38 per share (7,894,737 shares) and 1,559,211 Warrants (collectively, the "Unit Offering"). The Debentures and Warrants issuable in the Unit Offering will carry the same rights and privileges as those issued in the Debenture Offering. Assuming the Unit Offering is completed and all Debentures and Warrants issued thereunder were converted or exercised, as the case may be, Kisco would own approximately 65% of the Company's issued and outstanding shares, post closing. As the Unit Offering constitutes a related party transaction under applicable securities laws, both the approval of the Exchange and a majority of the disinterested shareholders of the Company will be required to complete the Unit Offering. The Company intends to seek shareholder approval at a special meeting of shareholders to be held on December 3, 2007 to, among other things, consider and if deemed appropriate, approve the proposed Unit Offering. The Board of Directors of Longbow (excluding the directors nominated by Kisco) believes the proposed offerings are in the best interests of the Company and unanimously recommends that the shareholders approve the Unit Offering at the upcoming special meeting of shareholders. An information circular providing additional details of the proposed Unit Offering will be mailed to shareholders on or about November 5, 2007.

All securities issued pursuant to these private placements, including any securities issued on exercise of the Warrants or conversion of the Debentures, as the case may be, will be subject to a four month hold period commencing on the applicable closing date.

Proceeds from these private placements will be used principally to finance continuing exploration and development activities on Longbow's Alberta properties in Byemoor and Lone Pine. For further details, see www.longbowresources.com.

Longbow is a junior oil and natural gas company based in Calgary, Alberta with properties located in Alberta, British Columbia and Saskatchewan. Currently, the Company has approximately 25,170,000 common shares issued and outstanding.

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. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic fee per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions herein are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

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

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