April 26, 2004

NEWS RELEASE 
 
Loon – Private Placement
 
Loon Energy Inc. (“Loon”) (TSX-V:LEY) reports that certain insiders of Loon have sold 1,848,500 common shares of Loon through the facilities of the TSX Venture Exchange at an average price of $0.191. The proceeds from this sale will be used to fund part of a private placement of Loon announced by news release dated April 21, 2004. The private placement is for up to 10,000,000 common shares of Loon at an issue price of $0.18 per common shares for gross proceeds of up to $1.8 million.

Proceeds of the issue will be used to fund Loon’s portion of a well in eastern Slovenia disclosed in news release dated April 26, 2004 and for general corporate purposes. The private placement is subject to regulatory approval.
 
Loon is focused on exploration and development projects in Slovenia and other countries in south-central Europe. Slovenia is bounded by Croatia (south), Hungary (east), Austria (north) and Italy (west). The principal project area is located in eastern Slovenia near to the borders with Hungary and Croatia approximately 210 kilometres south of Vienna, Austria and 180 kilometres northeast of Ljubljana, the capital of Slovenia. Slovenia joined NATO in April, 2004 and is scheduled to join the European Union (“EU”) in May of this year.