August 3, 2004

NEWS RELEASE 
 
Loon Issues Options
 
Loon Energy Inc. (“Loon”) (TSX-V:LEY) granted options to purchase 700,000 common shares on August 3, 2004. The exercise price is $0.21 per share and the expiry date of the options is August 3, 2009. The options were granted to two directors of Loon.