Maskal Energy Ltd.
TSX VENTURE : MMK

October 29, 2007 15:44 ET

Maskal Energy Closes $630,000 Private Placement, Grants Options

CALGARY, ALBERTA--(Marketwire - Oct. 29, 2007) -

(NOT INTENDED FOR DISSEMINATION IN THE UNITED STATES)

Maskal Energy Ltd. (TSX VENTURE:MMK) ("Maskal" or the "Corporation") is pleased to announce that the private placement previously announced on August 28, 2007 has closed and required regulatory approvals have been obtained. The Corporation sold an aggregate of 3,000,000 Units at $0.21 per unit for gross proceeds of $630,000. Each Unit is comprised of one common share and one common share purchase warrant. Each Warrant entitles the holder to acquire one additional common share from the treasury of the Corporation at an exercise price of $0.30 exercisable until October 19th, 2009, subject to an increase in the exercise price of the warrants to $0.40 in the event the weighted average trading price of the common shares exceeds $0.50 in any 20 day trading period. The private placement was non-brokered, and no commissions or finder's fees were paid. The proceeds of this placement will be used to pay down existing indebtedness, including the repayment of all outstanding debentures, and for general working capital. The hold period applicable to securities issued under the subject private placement will expire on February 20, 2008.

Maskal has also granted incentive stock options to directors, officers, employees and consultants entitling the holders to acquire an aggregate of 330,000 common shares. The options are exercisable at $0.48 per share, being the closing price of the Maskal common shares on the last trading day preceding the date of this announcement. The options vest immediately and will generally be exercisable for a period of 5 years.

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

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