Cruiser Oil & Gas Ltd.

Cruiser Oil & Gas Ltd.

August 24, 2005 14:36 ET

Cruiser Closes $10.0 Million Private Placement

CALGARY, ALBERTA--(CCNMatthews - Aug. 24, 2005) - Cruiser Oil & Gas Ltd. (TSX VENTURE:COG) ("Cruiser" or the "Company") is pleased to announce that it has closed its previously reported financing with Acumen Capital Finance Partners Limited for the private placement of 10,000,000 common shares of the Company ("Common Shares") priced at $0.30 per Common Share ($3,000,000) and 20,000,000 flow-through common shares ("Flow Through Shares") priced at $0.35 per Flow Through Share ($7,000,000) resulting in gross proceeds of $10,000,000. Proceeds from this offering will be used to fund the previously announced Participation Agreement, additional future exploration and/or development activities and to provide general working capital for the Company. The shares issued under the offering are subject to a four month hold period pursuant to applicable securities regulations.

In conjunction with the closing of the financing, the Company also intends to proceed to grant 650,000 options to its newly appointed Vice President, Exploration at an exercise price equal to the offering price for the Common Shares under the private placement.

Cruiser Oil & Gas Ltd. is a public junior oil and gas company engaged in the exploration, exploitation, acquisition and production of petroleum and natural gas in Western Canada. Cruiser is focused on re-entry and new drilling of multi-zone gas and oil prospects west of the fifth meridian.

Cruiser Oil & Gas Ltd. trades on the TSX Venture exchange under the symbol COG.

Cautionary Statements

The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. The Company disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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