Blue Parrot to Complete Two Private Placements for $17.5 Million

Blue Parrot Energy has announced that further to its news release of October 25, 2007, the Company has amended the terms of its previously announced private placements such that it now expects to complete two private placements for total gross proceeds of up to $17,500,000.

The terms of the Common Share Offering described in the previous news release have been amended such that the Company will now be issuing up to 80,000,000 common shares, rather than subscription receipts. The terms of the Debenture Offering have been amended to increase the maximum total proceeds to up to $13,500,000 and the Maturity Date of the Debentures has been extended to 12 months following closing (while the term of the Warrants remains at 24 months) and no other terms have changed.

Both private placements are expected to be completed prior to December 31, 2007 and the proceeds from the private placements are expected to provide the Company with sufficient working capital to complete its CEE capital expenditures and repay a portion of its existing debt.

The Company is also pleased to announce that it has entered into a farmin agreement with an arms length private company, pursuant to which the Company intends to complete its remaining outstanding CEE expenditures, so as to permit it to renounce its qualifying expenditures to subscribers for flow-through shares of the Company.

In addition, the Company announces that it intends to enter into settlement agreements with certain creditors of the Company whereby up to $2,500,000 of debt may be settled by way of issuance of up to 50,000,000 common shares of the Company at a deemed price of $0.05 per share. To date, certain creditors have expressed a willingness to settle $104,583.24 of the Company's outstanding debts by the issuance of 2,091,666 common shares at $0.05 per share. The settlements are subject to TSX Venture Exchange approval and the common shares issued will be subject to a four month hold period, in accordance with applicable securities laws.

Following completion of the financings and debt settlements described herein, the Company will continue to review and evaluate strategic alternatives to maximize shareholder value through a business combination or other restructuring transaction.


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