Cheyenne Energy Inc.

Cheyenne Energy Inc.

May 30, 2005 12:36 ET

Cheyenne Announces Private Placement Financing

CALGARY, ALBERTA--(CCNMatthews - May 30, 2005) - Cheyenne Energy Inc. (TSX VENTURE:CHY) ("Cheyenne" or the "Company") announces that Wolverton Securities Ltd. ("Wolverton") has been retained as sole agent to raise up to $1.0 million by way of a private placement financing, on a commercially reasonable efforts basis, through the issue of 1.2 million common shares of the Company on a flow-through basis at a price of $0.85 per flow-through common share (the "Financing"). There will be a hold period of 4 months on the sale of the common shares.

Proceeds from Financing will be used to fund Qualifying Expenditures (as defined under the Income Tax Act (Canada)) in the drilling of additional exploration wells in the Company's core areas of Camrose and Cessford. Subscribers will be entitled to claim deductions for income tax purposes in the 2005 taxation year equal to 100% of their flow-through subscription amount.

The Company has granted Wolverton broker options totalling 7.5% of the flow-through shares issued at a price of $0.85 per option for a period of 12 months.

The Financing is subject to normal regulatory approvals and is expected to close on or about June 30, 2005.

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 internal operations of the drill bit and provide maximum shareholder return.

This news may contain forward-looking information. Actual future results may differ materially from those contemplated herein.

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

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