Galaxy Energy Enters Into Financing Agreement

Galaxy Energy has agreed in principle to terms of a senior secured convertible note in the aggregate principal amount of $10,000,000. The agreement between Galaxy Energy and Promethean Capital Group LLC is subject to completion and execution of definitive documentation. Proceeds of the financing would be used for the development of Galaxy's existing oil and gas properties. Galaxy has filed a Form 8-K with the Securities and Exchange Commission that discloses details of the agreement.

Galaxy Energy Corporation is an oil and gas exploration and production company focusing on acquiring and developing coalbed methane properties in the Powder River Basin of Wyoming and Montana, and other projects within the Rocky Mountain area.