Cheyenne Energy Inc.

Cheyenne Energy Inc.

August 20, 2007 09:00 ET

Cheyenne Announces Flow-Through Share Private Placement Financing

CALGARY, ALBERTA--(Marketwire - Aug. 20, 2007) - Cheyenne Energy Inc. (TSX VENTURE:CHY) ("Cheyenne" or the "Company") is pleased to announce that it has engaged Union Securities Ltd. of Calgary, Alberta, to act as agent, on a best efforts basis, in respect to a flow-through share private placement to raise gross proceeds of up to $1.0 million through the issue of 3,333,333 common shares on a flow-through basis of the Company at $0.30 per share. A commission of 8.0% will be paid to Union Securities Ltd. as agent, who will also receive broker options equal to 10% of the securities sold. Proceeds will be used for further development of the Company's Hawk play in northwestern Alberta (Township 97, Range 20, west of the 5th meridian), and for working capital.

Cheyenne is a Calgary based oil and gas exploration and development company in Western Canada. It has positioned itself as a strong junior oil and gas producer through internal generation of core producing areas. The corporate strategy is organic growth through the drill bit, maintain high working interests and operatorship, develop core areas in geographic areas of expertise of management, all in order to maximize shareholder value.

Cheyenne's shares are listed on the TSX Venture Exchange under the symbol CHY.

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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