Blue Parrot Energy Inc.

Blue Parrot Energy Inc.

November 10, 2006 15:44 ET

Blue Parrot Announces Completion of Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 10, 2006) - Blue Parrot Energy Inc. (TSX VENTURE:BPA) ("Blue Parrot" or the "Corporation") announces that it has completed closing of a portion of the previously announced private placement financing. The Corporation anticipates completing closing of the balance of the financing in the near future. The total gross proceeds raised from this portion of the financing were $5,032,470, resulting in the issuance of 16,774,900 common shares of the Corporation issued on a flow-through basis ("Flow-Through Shares") at a price of $0.30 per Flow-Through Share. Research Capital Corporation ("Research") acted as agent in respect of this financing and Research was paid a cash commission and granted an agent's option which allows Research to acquire, upon exercise of such agent's option, that number of common shares of the Corporation ("Common Shares") equal to 5% of the total number of Flow-Through Shares sold pursuant to the private placement, at a price of $0.30 per Common Share, expiring 12 months after the Closing Date.

The Corporation has also approved the granting to the Agent of an over-allotment option to purchase from the Corporation, at the Agent's election, up to 4,000,000 Flow-Through Shares exercisable at any time and from time to time until five days following the closing date for the balance of the financing for the purpose of covering over-allotments, if any, at the purchase price of $0.30 per share.

Directors and officers of the Corporation acquired 35,000 Flow-Through Shares pursuant to the private placement. The Flow-Through Shares are all subject to a four month hold period, expiring on March 11, 2007. Blue Parrot now has outstanding 55,589,311 Common Shares.

The net proceeds from the sale of the Flow-Through Shares will be used to fund the Corporation's continued exploration and development programs.

The Flow-Through Shares have not and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

Blue Parrot is an oil and natural gas exploration, development and production company based in Calgary, Alberta. Blue Parrot's shares trade on the TSX Venture Exchange under the symbol "BPA".

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

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