Valkyries Petroleum Completes Cdn $66 Million Private Placement

Valkyries Petroleum reports that it has completed the private placement announced, as amended, on August 10,2005. The Company sold on a non-brokered, private placement basis 11 million common shares of the Company at a price of Cdn $6.00 per share for gross proceeds of Cdn $66 million.

Net proceeds of the private placement will be used to repay the US $50 million bridge loan obtained by the Company to fund the acquisition of a 70% interest in the Lagansky exploration block as well as for general corporate purposes (please see news release dated July 22, 2005). A finders' fee of 5% was paid on a portion of the private placement. The private placement has received regulatory approval and the shares have now been issued to the investors. The shares are subject to a 4 month hold period from the date of issue.