Cheyenne Energy Inc.
TSX VENTURE : CHY

Cheyenne Energy Inc.

November 29, 2006 13:23 ET

Cheyenne Announces Amended Terms to its Previously Announced Private Placement Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 29, 2006) - Cheyenne Energy Inc. (TSX VENTURE:CHY) ("Cheyenne" or the "Company") announces that it has amended the terms of its previously announced private placement offering. Its agent, Wellington West Capital Inc. of Winnipeg, Manitoba ("Wellington") will offer, on a best efforts basis, a combination of up to 11,428,571 common shares of the Company issued on a flow-through basis at a price of $0.35 per share and up to 3,125,000 units of the Company at a price of $0.32 per unit. Each unit consists of one common share plus one warrant to purchase an additional common share at a price of $0.65 per share with an expiry of 18 months from the date of issuance. Maximum gross proceeds of the private placement will be $5.0 million. Cheyenne has agreed to pay Wellington a commission of 7.25% of the gross proceeds and broker warrants equal to 10% of the securities sold.

Closing is expected to occur on or about December 15, 2006, or such other date or dates agreed upon by the Company and Wellington.

Cheyenne will use the net proceeds for further development of the Company's Hawk play in northwestern Alberta (Township 97, Range 19 west of 5th meridian) and for working capital.

Cheyenne Energy Inc. is a public energy company engaged in the exploration for and development and production of crude oil and natural gas, primarily in Western Canada. Cheyenne's corporate strategy is to grow and develop oil and gas reserves through the drill bit and add value for its shareholders.

This press release contains forward-looking statements. These forward-looking statements can generally be identified as such because of the context of the statements including words such as the Company "believes", "anticipates", "expects", "plans", "may", "estimates" or words of a similar nature. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Accordingly, readers are cautioned and no assurances can be given that any of the events anticipated by the forward-looking statements will occur, or if any of them do so, what benefits that we will derive there from. The Company does not undertake any obligation to publicly update or revise any forward-looking statements.

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

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