Western Lakota Energy Services Inc.
TSX VENTURE : WLE

Western Lakota Energy Services Inc.

January 20, 2005 18:03 ET

Western Lakota Energy Services Inc.: Corporate Update

CALGARY, ALBERTA--(CCNMatthews - Jan. 20, 2005) -

NOT FOR DISTRIBUTION INTO THE UNITED STATES OR TO UNITED STATES WIRE SERVICES

Western Lakota Energy Services Inc. (TSX VENTURE:WLE) ("Western Lakota") is pleased to announce that
it has entered into a financing agreement with a syndicate of underwriters, led by Peters & Co.
Limited and including First Associates Investment Inc., under which the underwriters have agreed to
purchase for resale to the public, on a bought deal private placement basis, 5,500,000 common shares
of Western Lakota at a price of $4.60 per common share, resulting in gross proceeds of $25,300,000.

Proceeds of the offering will be used to partially fund Western Lakota's 2005 capital expenditure
program and for general corporate purposes.

The offering is subject to normal regulatory approvals, including the approval of the TSX Venture
Exchange. The common shares will be offered in the each of the provinces of British Columbia,
Alberta, and Ontario. Closing of the private placement financing is expected to occur on or about
February 8, 2005.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the common
shares in the United States. The common shares have not been and will not be registered under the U.S.
Securities Act of 1933 and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of such Act.

Pursuant to Multilateral Instrument 45-102, the common shares issued will be subject to a four month
hold period.

Western Lakota is one of Canada's fastest-growing drilling contractors and currently operates fifteen
rigs, twelve of which are operated in partnerships with: Dene Tha' First Nation, Metis Nation of
Alberta, Saddle Lake First Nation, Samson Cree Nation, the Blood Tribe and Duncan's First Nation.
Western Lakota continues to provide one of the newest fleets of safe and efficient drilling rigs in
Canada enriched by Aboriginal community involvement.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Western Lakota Energy Services Inc.
    Elson McDougald
    President & CEO
    (403) 214-5953
    Email: elson@westernlakota.com
    or
    Western Lakota Energy Services Inc.
    1050, 400 - 5th Avenue SW,
    Calgary, Alberta T2P 0L6
    (403) 214-5970
    (403) 214-5955 (FAX)
    Website: www.westernlakota.com