August 11, 2004

NEWS RELEASE 
 
Loon Pt-123 Well Cased to Total Depth
 
Loon Energy Inc. (“Loon”) (TSX-V:LEY) advises that the Pt-123 well, drilled in northeastern Slovenia, has finished drilling at a depth of 2,080 metres and is being cased to total depth. Completion of selected zones, indicated to be prospective based upon the drilling, logging and MDT evaluation of the well, is expected to begin prior to the end of August.