August 9, 2004

NEWS RELEASE 
 
Loon Issues Options
 
Loon Energy Inc. (“Loon”) (TSX-V:LEY) granted options to purchase 700,000 common shares on August 9, 2004. The exercise price is $0.24 per share and the expiry date of the options is August 9, 2009. The options, granted to one director and one consultant of Loon, are in addition to the options granted to two directors on August 3rd..

Loon has 45,525,708 common shares issued and outstanding. Total options outstanding, including those granted today, are 4,368,000.