SOURCE: Mogul Energy International, Inc.

Mogul Energy International, Inc.

September 23, 2010 16:32 ET

Mogul Energy International, Inc. Announces the Cancellation of the Letter of Intent Agreement With Powderhorn Energy, LLC and the Funding of Two Wells From Other Sources

SEATTLE, WA--(Marketwire - September 23, 2010) -  Mogul Energy International, Inc. ("Mogul") (OTCBB: MGUY) (FRANKFURT: BKX) announced it has cancelled the Letter of Intent ("LOI") with Powderhorn Energy, LLC of Denver, Colorado and its financial partners (collectively "Powderhorn"). Powderhorn was unsuccessful, after several extensions to the LOI agreement, in securing the necessary funding for this drilling program.

With the cancellation of this LOI, Mogul has a commitment of funds from two additional sources to partially fund the drilling of the first two prospects in its current inventory of prospects. Additional discussions are currently taking place with other potential funding sources to equal or exceed Mogul's investment in each of these wells.

Mogul is continuing with the acquisition of the necessary oil, gas and mineral leases on each of these initial prospects. The requisite state permits to drill will be secured from the Texas Railroad Commission upon completion of the leasing and title clearance.

Information concerning Mogul Energy International, Inc.:

Mogul Energy International, Inc. ("Mogul") is an oil and gas exploration company with headquarters in Seattle, Washington. The common shares of Mogul are quoted on the OTC Bulletin Board (OTCBB) system under the symbol "MGUY," and the Frankfurt Stock Exchange ("FSE") under the symbol 'BKX.' Further information concerning Mogul can be found in the Company's filings with the U.S. Securities and Exchange Commission (http://www.sec.gov).

Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of the securities laws, which are based on current expectations and beliefs, as well as on a number of assumptions concerning future events made with information that is currently available. Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Inherent in Mogul Energy International, Inc.'s ("Mogul") business plan is a belief that Mogul can successfully explore oil and gas properties in Canada and the United States, and that Mogul can participate in the development of those properties. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of Mogul's control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to Mogul Energy's filings with the U.S. Securities and Exchange Commission. Mogul assumes no obligation to update or supplement such forward-looking statements other than as required by law.

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