Arapahoe Energy Changes Name, Completes Placement Offering

Arapahoe Energy Corporation has received disinterested shareholder approval for its previously announced non-brokered private placement financing and shareholder approval for the name change of the Corporation to Canadian Phoenix Resources Corp. The Corporation is also pleased to announce that it has completed the Offering for aggregate gross proceeds of $17,888,951.

Pursuant to the Offering, the Corporation issued 102,200,000 common shares of the Corporation ("Common Shares") issued on a "flow-through" basis under the Income Tax Act (Canada) ("Flow-Through Shares") at the price of $0.125 per Flow-Through Share for gross proceeds of $12,775,001 (the "Flow-Through Private Placement"). The proceeds of the Flow-Through Private Placement will be used by the Corporation to incur Qualifying Expenditures, which will be renounced in favour of purchasers for the 2007 taxation year. It is anticipated that the proceeds will be used primarily for seismic programs and other exploratory activities on the Corporation's properties including Sarcee and Campbell, and on certain properties on which the Corporation has presently or may acquire farm-in rights.

Pursuant to the Offering, the Corporation also issued 40,911,600 units of the Corporation ("Units") at the price of $0.125 per Unit for gross proceeds of $5,113,950 (the "Unit Private Placement"). Each Unit consists of one Common Share and one Common Share purchase warrant ("Warrant"). Each Warrant will entitle the holder thereof to purchase one Common Share during the period expiring on the first anniversary of the completion of the Private Placement upon payment of the exercise price of $0.20 per Common Share. The proceeds of the Unit Private Placement will be used by the Corporation to develop its oil and natural gas projects, to conduct acquisitions and for general working capital purposes.

The securities issued pursuant to the Offering are subject to a restriction period expiring April 29, 2008. Following the completion of the Offering, the Corporation has 199,917,032 Common Shares issued and outstanding. The completion of the Offering is subject to regulatory approval.

The Corporation plans on effecting the Name Change to Canadian Phoenix Resources Corp. by the middle of January 2008.

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