Loon Energy Grants Options

Loon Energy Inc. (TSX-V: LEY) has granted options to purchase 800,000 common shares of the Company pursuant to the Stock Option Plan of the Company. The options were granted effective March 31, 2004 for a term of 5 years and at an exercise price of $0.16. Options were granted to four directors and two consultants.

Loon is an exploration and production company with minor oil and gas production in Canada and exploration and development projects in Slovenia and other countries in south-central Europe. Slovenia is located in south-central Europe and is bounded by Croatia (south), Hungary (east), Austria (north) and Italy (west). The principal project area is located in eastern Slovenia near to the borders with Hungary and Croatia approximately 210 kilometers south of Vienna, Austria and 180 kilometers northeast of Ljubljana, the capital of Slovenia. Slovenia joined NATO earlier this month and will be joining the European Union in May of this year.