Cheyenne Energy Inc.
TSX VENTURE : CHY

Cheyenne Energy Inc.

July 25, 2005 12:17 ET

Cheyenne Closes Second Private Placement

CALGARY, ALBERTA--(CCNMatthews - July 25, 2005) - Cheyenne Energy Inc. (TSX VENTURE:CHY) ("Cheyenne" or the "Company") announces that it has closed, subject to regulatory approval, a non-brokered private placement financing. Cheyenne issued 100,000 common shares on a flow-through basis at a price of $0.85 per share for total gross proceeds of $85,000. Proceeds from this financing will be used to fund Qualifying Expenditures (as defined under the Income Tax Act (Canada)) for the drilling of additional wells in the areas of Camrose and Cessford, Alberta.

The Company has granted Scotia Capital a finder's fee of 7.5% of the gross proceeds and options of 7.5% of the flow-through shares issued at a price of $0.85 per option expiring July 25, 2006. The shares and options are subject to a 4 month hold period ending November 25, 2005.

Cheyenne 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 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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