Arsenal Energy Inc.

Arsenal Energy Inc.

March 17, 2005 18:01 ET

Arsenal Raises $3,400,000 from Warrants and Stock Options


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ARSENAL ENERGY INC.

TSX VENTURE SYMBOL: AEI

MARCH 17, 2005 - 18:01 ET

Arsenal Raises $3,400,000 from Warrants and Stock
Options

CALGARY, ALBERTA--(CCNMatthews - March 17, 2005) - Arsenal Energy Inc.
(TSX VENTURE:AEI) is pleased to announce that warrant holders holding an
aggregate of 3,784,270 warrants of Arsenal have exercised the warrants
into 3,784,270 common shares for aggregate consideration of $3,186,764.
Of this total, 1,600,000 warrants were exercised by officers and
directors of Arsenal. In addition directors of Arsenal exercised 923,333
stock options to acquire an aggregate of 923,333 common shares of
Arsenal.

After the exercise of the foregoing warrants and stock options, Arsenal
will have 23,697,309 outstanding common shares and 2,766,745 warrants
outstanding. The warrants are exercisable into 2,766,745 common shares
at an exercise price of $1.00 which expire between August 27th, 2005 and
December 15th, 2005. In addition, Arsenal has 37,649 warrants
exercisable into 37,649 common shares at an exercise price of $0.60
which expire on December 15, 2005 and stock options exercisable into
1,355,000 common shares.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Arsenal Energy Inc.
    Michael S. Vandale
    President and Chief Executive Officer
    (403) 262-4854
    (403) 265-6877 (FAX)
    Email: msv@arsenalenergy.com
    or
    Arsenal Energy Inc.
    Jesse Meidl, CA
    Chief Financial Officer
    (403) 262-4854
    (403) 265-6877 (FAX)
    Email: jm@arsenalenergy.com
    or
    Arsenal Energy Inc.
    1110, 521 - 3rd Avenue SW
    Calgary, Alberta T2P 3T3
    Email: info@arsenalenergy.com
    Website: www.arsenalenergy.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.