Grey Wolf Exploration Inc.
TSX : GWE

Grey Wolf Exploration Inc.

September 01, 2005 17:01 ET

Grey Wolf Provides Operational Update

CALGARY, ALBERTA--(CCNMatthews - Sept. 1, 2005) -

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UNITED STATES

Grey Wolf Exploration Inc. (TSX:GWE) ("Grey Wolf") is pleased to report that cumulative initial production tests in excess of 1,000 barrels of oil equivalent per day (GWE working interest) have been achieved as a result of recent exploration and development activities. This new production will be placed onstream during the fourth quarter of 2005. It should be noted that this data refers to preliminary tests only. Sustainable production information will be reported as it becomes available.

"We are very pleased with the progress of our 2005 capital program to-date" stated Mr. Vince Tkachyk, President and Chief Operating Officer of the Company. "These results confirm that we are on target to provide our shareholders with a year of strong operational and value growth."

Grey Wolf is an independent Alberta-based, junior oil and natural gas company involved in the development and production of natural gas and crude oil in the Western Canadian Sedimentary Basin. Its common shares trade on the Toronto Stock Exchange under the symbol "GWE".

Forward-Looking Statements - Certain information set forth in this document, including management's assessment of Grey Wolf's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Grey Wolf's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Grey Wolf's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. No assurance can be given that any of the events anticipated will transpire or occur, or if any of them do so, what benefits Grey Wolf will derive from them. Grey Wolf disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The calculation of barrels of oil equivalent ("boe") is based on a conversion ratio of six thousand cubic feet of natural gas to one barrel of oil to estimate relative energy content and does not represent a value equivalency - boes may be misleading, particularly if used in isolation.

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