June 28, 2007
TSX-V:LEY

NEWS RELEASE

Loon Amends Q2 and Q3 2006 Quarterly Filings

Calgary, Alberta, Canada, June 28, 2007 – Loon Energy Inc. (“Loon”) (TSX.V – LEY) has filed amended financial statements for the 6 months and 9 months ended June 30, 2006 and September 30, 2006 respectively. Details of the amendments are as outlined below.

The disclosure surrounding the sale of Loons’ interest in Frontier Holdings Limited to Jura Energy Corporation was amended to clarify how the investment value presented in the amended financial statements of $9,527,401 was determined and how the corresponding gain on sale of the subsidiary was recorded. The income statements were amended to reflect a $9,205,430 gain in value.

The income statement were amended to indicate the current income tax expense incurred as a consequence of the gain ($754,000) and an income tax note was added to disclose the reconciliation between expected and actual current taxes and to the components of the future tax asset.

The amended quarterly filings were released to SEDAR (www.sedar.com) on May 15, 2007.

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 statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.