Stylus Energy Enters Financing Deal

Stylus Energy Inc. has entered into a financing agreement with an underwriting syndicate led by Peters & Co. Limited and including Acumen Capital Finance Partners Limited, Canaccord Capital Corporation and Sprott Securities Inc. Stylus will issue, on a private placement, bought deal basis 2,106,000 flow-through common shares at a price of $4.75 per flow-through common share for total gross proceeds of approximately $10 million.

The private placement financing is scheduled to close on June 30, 2006 and is subject to customary conditions including regulatory approval.

Proceeds from the issuance of the flow-through common shares will be used to incur Canadian exploration expenses on continued exploration of Stylus' oil and natural gas properties prior to December 31, 2007 and will be renounced to subscribers of the flow through common shares effective December 31, 2006.

Stylus is a Calgary-based junior oil and natural gas company with operations in Alberta. The common shares of Stylus are listed on the Toronto Stock Exchange and trade under the symbol "STY".