October 28, 2005 18:38 ET

Arapahoe Energy Corporation Completes Final Tranche of Private Placement for $500,000

CALGARY, ALBERTA--(CCNMatthews - Oct. 28, 2005) - Arapahoe Energy Corporation (the "Corporation") (TSX VENTURE:AAO) is pleased to announce that it has closed the second and final tranche of its previously announced private placement. An aggregate of 666,667 Flow-Through Common Shares at a price of $0.75 per share were issued for proceeds of $500,000. The securities issued are subject to a statutory restricted period of four months.

As previously announced, Dominick & Dominick Securities Inc. acted as the Corporation's Canadian agent and financial advisor in connection with the private placement. Dominick & Dominick Securities Inc. received fees of $35,000 cash and 66,667 broker warrants for raising funds in this final tranche of the private placement. The warrants issued to Dominick & Dominick Securities Inc. are exercisable for a period of 12 months at an exercise price of $0.75 per share.

The net proceeds of the private placement will fund the Corporation's 2005 and 2006 exploration and development program and for general working capital purposes.

Arapahoe is a junior oil and gas exploration company engaged in the exploration, development and production of oil and natural gas in Western Canada. Arapahoe's primary areas of exploration focus are the Alberta Foothills, specifically on the Tsuu T'ina First Nation (Sarcee Area) immediately west of the City of Calgary and in western Saskatchewan on Poundmaker Cree Nation lands.

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

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