February 17, 2006
TSX-V:LEY

NEWS RELEASE

Loon Appoints Officers & New Director

Calgary, Alberta, Canada, February 17, 2006 — Loon Energy Inc. ("Loon") (TSX.V-LEY) is pleased to announce the following appointments effective February 10, 2006:

Timothy M. Elliott has been appointed President and Chief Executive Officer. Mr. Elliott has been a director of Loon since 2001. He received his B.A. Honours degree from St. Francis Xavier University in 1982 and his law degree from the University of Ottawa in 1985. Mr. Elliott joined the Lundin Group of companies in 1987 and was a director and vice president of International Petroleum Corporation prior to leaving that group in 1999 to pursue international oil and gas deals through a private company. Mr. Elliott is based in the Loon office in Dubai, United Arab Emirates.

Jock M. Graham has been appointed Vice President. Mr. Graham received his B.Sc. Honours degree from St. Frances Xavier University in 1982 and began his career as a geoscientist in the oil and gas industry with Chevron Canada. His career in international oil and gas began in 1988. Mr. Graham held senior or advisory positions with a number of international exploration companies including Coplex Petroleum, Arabex Petroleum, Cabre Exploration International and Lundin Oil prior to joining Loon in 2004 as Exploration Advisor. Mr. Graham is based in the Loon office in Dubai, United Arab Emirates.

Michael A. McVea has been appointed as a director. Mr. McVea received his B.A. (History) degree in 1971 and his law degree in 1974 from the University of British Columbia. He practiced law from 1974 until his retirement in 2004. More recently, Mr. McVea was a Director of TKE Energy Trust until the formation of True Energy Trust. Currently, Mr. McVea resides in Victoria, BC.

Forward Looking Statements — Some of the statements contained in this release may be forward-looking statements. Forward-looking statements may include, but are not limited to, statements concerning estimates of recoverable hydrocarbons, expected hydrocarbon prices, expected costs, statements relating to the continued advancement of the Company's projects and other statements which are not historical facts. When used in this document, and in other published information of the Company, the words such as "could," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are indicative of a forward-looking statement. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable, the potential results suggested by such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors, which could cause actual results to differ from these forward-looking statements, include the potential that the Company's projects will experience technical and mechanical problems, geological conditions in the reservoir which may negatively impact levels of oil and gas production and changes in product prices and other risks not anticipated by the Company or disclosed in the Company's published material. Since forward-looking staevents and conditions, by their very nature, they involve inherent risks and uncertainties.

The TSX Venture Exchange neither approves nor disapproves of the information contained herein.