Longbow Resources Inc.
TSX VENTURE : LBR

Longbow Resources Inc.

October 29, 2007 11:57 ET

Longbow Resources Announces First Closing of $6 Million Financing

CALGARY, ALBERTA--(Marketwire - Oct. 29, 2007) - Longbow Resources Inc. (TSX VENTURE:LBR) ("Longbow" or the "Company") is pleased to announce the closing of the first part of its previously announced (News Release dated October 15, 2007) non-brokered two-part private placement of securities (the "Offering") pursuant to the conditional approval of the TSX Venture Exchange (the "Exchange"). In the first closing, the Company issued a $1.7 million convertible debenture ("Debenture") and 750,000 common share purchase warrants ("Warrants") to Kisco LBR LLC. The Debenture will mature on October 26, 2009, will pay no interest, will vote on an "as if converted" basis and will be convertible to common shares of the Company at $0.40 per common share. The Debenture will be secured by a floating charge against the assets of Longbow. In addition, in certain circumstances, the Company will have the right to require that a certain percentage of the Debenture be converted to common shares at the conversion price. Each Warrant will entitle the holder thereof to purchase one additional common share of Longbow at a price of $0.40 until October 26, 2009. Assuming full conversion of the Debenture and full exercise of the Warrants (as well as conversion and exercise of securities previously issued to Kisco), Kisco would own approximately 54.2% of Longbow's issued and outstanding shares.

The second part of the Offering is comprised of: (i) $1,300,000 principal amount Debentures; (ii) 7,894,737 common shares at $0.38 per share; and (iii) 1,559,211 Warrants. Closing of the second part of the Offering is expected to occur on or about December 4, 2007 and is subject, among other things, to all necessary regulatory approvals and disinterested shareholder approval at a special meeting of shareholders to be held on December 3, 2007.

All securities issued pursuant to the first closing of the Offering, including any securities issued on exercise of the Warrants or conversion of the Debenture will be subject to a four (4) month hold period which expires on February 27, 2008.

The proceeds from these private placements will be used to finance continuing exploration and development activities at Longbow's Alberta properties in Lone Pine and Byemoor. 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 25,170,802 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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