Cheyenne Energy Inc.

Cheyenne Energy Inc.

November 19, 2007 17:00 ET

Cheyenne Cancels Flow-Through Share Private Placement and Signs Forbearance Agreement With Bank

CALGARY, ALBERTA--(Marketwire - Nov. 19, 2007) - Cheyenne Energy Inc. (TSX VENTURE:CHY) ("Cheyenne" or the "Company") regrets to announce that due to unfavourable market conditions and internal restructuring efforts, the flow-through share private placement, as announced on August 20, 2007 and amended on October 9, 2007, has been cancelled. Further announcements on financings will be made when the Company has determined its next steps.

The Company has also entered into a forbearance agreement (the "Forbearance Agreement") with its Lender. In the past, the Company had breached its requirement to maintain a working capital of 1:1 ratio. At that time, it had received a waiver from the Lender with respect to this breach. This waiver has not been granted since March 31, 2007 quarter end. The forbearance agreement had originally expired October 31st but it is expected to be extended by the Lender with new terms to follow. Under the terms of the Forbearance Agreement, the Company acknowledged that it had defaulted on its working capital ratio, had failed to reduce its operating loan availability on a monthly basis, the amount of the Company's advances exceed the amount of the Company's lending base as determined by the Lender, and there has been a material adverse change in the financial condition of the Company due to some registration of liens on its well at location 14-14-097-20W5. At this time the Lender has agreed to forbear from exercising certain or all of its rights and remedies available to it while a new forbearance agreement is put in place. This new agreement is expected to expire on January 31, 2008 and is still being finalized. The Forbearance Agreement provides that the Company will fully cooperate with the Lender in connection with any efforts to sell or market the current assets.

This Forbearance Agreement will allow the Company to continue its operations while both the Company and its Lender explore strategic alternatives. At this time, a restructuring specialist along with CB Securities Inc. have been hired to assist in determining alternative strategies to deal with the Company's Lender and creditors. Until these issues have been resolved, there will be no further activity in the Hawk area of northern Alberta.

Cheyenne is a Calgary based oil and gas exploration and development company in Western Canada. Its mission is to be 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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