Storm Cat Energy Corporation

Storm Cat Energy Corporation

March 17, 2005 09:00 ET

Storm Cat Energy Updates Mongolian Projects


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: STORM CAT ENERGY CORPORATION

TSX VENTURE SYMBOL: SME

MARCH 17, 2005 - 09:00 ET

Storm Cat Energy Updates Mongolian Projects

CALGARY, ALBERTA--(CCNMatthews - March 17, 2005) - Storm Cat Energy
Corp. (TSX VENTURE:SME) (the "Company") is pleased to provide an update
on two of its Natural Gas from Coal exploration projects in Mongolia.

Noyon Project, South Gobi Desert:

As of April 19, 2004, working with the Petroleum Authority of Mongolia,
Storm Cat secured a five (5) year Production Sharing Contract on over 12
million acres in the South Gobi Desert which included large scale coal
deposits.

Initial exploration efforts primarily comprised drilling of twelve (12)
shallow stratigraphic tests, specifically in the Nariin Sukhait region
near the northern border of China. Data derived from these tests
included the collection of continuous core samples, as well as important
coal accumulations exceeding over 41m in total thickness, occurring in
as many as 10 separate seams.

Subsequent to these stratigraphic tests, Storm Cat has recently
completed four deeper resource evaluation wells on the Noyon project.
Three resource evaluation wells are located in the central area of the
Noyon license and the fourth test is located well over 100 kms to the
east, near the eastern border of this license. The wells confirmed the
presence of multiple coal seams as anticipated, and the Company is
currently desorbing the coals for gas content. Storm Cat awaits final
analysis of desorption tests prior to releasing overall results.

The coals in the Noyon project are of Permian age and are believed to be
of similar rank as those found in the prolific San Juan Basin of
Colorado and New Mexico. The company enlisted Mr. George Hampton, a
consulting geologist with worldwide Coalbed Methane experience, to
review the data acquired during this phase of our drilling program and
provide a detailed geological evaluation. The Company will then select
locations for additional drilling in 2005. Storm Cat anticipates
commencement of this next series of drilling to occur July 2005.

Tsaidam Project, Ulaanbaatar Area, Mongolia:

On December 14, 2004, Storm Cat announced entering into an Exploration
Contract with the Petroleum Authority of Mongolia, comprising 5,536,893
acres of land, of which over 500,000 acres include geologically mapped
coal deposits. Subsequently, on this Tsaidam Project, located in the
vicinity of Ulaanbaatar (the capital city of Mongolia), a large coal
sample was taken and analyzed for coal rank and adsorption capacity.
Storm Cat geologists are pleased to observe that the Tsaidam coal is
similar to the Powder River Basin Coals in rank, absorption capacity and
depth and with potentially thicker coals. An initial drill program is
planned for early June 2005.

Company President Scott Zimmerman noted "Information gathered to date
has been encouraging and provides us with increasing confidence in our
efforts in Mongolia."

By Order of the Board of Directors

Storm Cat Energy Corporation

J. Scott Zimmerman, President

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    The Kottmeier Resolution Group
    Kris Kottmeier
    Investor Relations
    Toll Free: 1-87STORMCAT (1-877-867-6228)
    info@stormcatenergy.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.